In its 2026 strategy report on the machinery and equipment industry, BOC International emphasized focusing on technological growth and tapping into the new era of intelligent manufacturing. The report pointed out that against the backdrop of the continued emphasis on high-end manufacturing in the 15th Five-Year Plan, 2026, as the opening year of the 15th Five-Year Plan, will see structural technological growth become the core driving force for navigating the economic cycle, despite continued pressure on the recovery of both domestic and external demand. The report focuses on investment opportunities in hard technology sectors such as controlled nuclear fusion, liquid cooling, solid-state battery equipment, and humanoid robots, and maintains an “Outperform” rating for the industry.
In the field of controlled nuclear fusion, it is considered the ultimate energy source for humanity, possessing outstanding advantages such as abundant fuel resources, high energy density, cleanliness, and high safety.
</ … Currently, the commercial application of controlled nuclear fusion has entered the engineering feasibility verification stage. With continuous breakthroughs in technologies such as superconductivity and AI, and increased attention and investment from domestic and international governments, commercialization is accelerating. In the second half of 2025, controlled nuclear fusion was included in the "15th Five-Year Plan" recommendations. The BEST project achieved a key breakthrough on October 1st, with the successful development and delivery of a key component of the main unit—the Dewar base. Large-scale bidding was launched in the fourth quarter, marking a new stage in my country's controlled nuclear fusion construction. Regarding liquid cooling, with the advent of the artificial intelligence era, the demand for computing power is constantly increasing. The power of single chips and the power density of server racks are rapidly rising, reaching the heat dissipation limits of traditional air cooling. At the same time, relevant policies are continuously tightening the PUE requirements for data centers. Driven by both industry and policy, liquid cooling has become an inevitable development direction for future AI servers and data centers, and the market size is expected to increase rapidly. Currently, cold plate liquid cooling is the mainstream solution, and liquid cooling plates are developing towards microchannel liquid cooling plates with stronger heat dissipation capabilities, bringing opportunities for new technologies such as 3D printing.
In the lithium battery equipment sector, the increasing demand from new energy vehicles and energy storage has driven strong demand for lithium batteries. Major battery manufacturers’ capacity utilization and capital expenditure have returned to an upward cycle, initiating a new round of capacity expansion and reversing the current difficulties in the lithium battery equipment industry. Furthermore, solid-state batteries possess advantages such as wide operating temperature range, safety, high energy density, and small size. Battery manufacturers plan to achieve small-batch production in 2027-2028, and are currently simultaneously ramping up pilot production lines and verifying automotive-grade samples. Equipment, as a pioneering component, is expected to fully benefit from the new round of upward capital expenditure.
Humanoid robots, with the gradual improvement of hardware technology, will move from concept to the early stages of industrialization by 2025. Many domestic and international companies have achieved breakthroughs in orders and deliveries, and are accelerating industrialization preparations towards a production capacity target of one million units.
Although its hardware and software are still being optimized and iterated, the traditional rotating mechanism solution is basically finalized, and components related to the transmission mechanism, such as motors, lead screws, and reducers, are expected to be the first to see increased flexibility. Dexterity and other factors remain obstacles to its commercialization, requiring close monitoring of technological development. The construction machinery industry is also showing a positive trend. According to data from the China Construction Machinery Industry Association, excavator sales reached 212,162 units from January to November 2025, a year-on-year increase of 16.7%, with both domestic and international sales showing clear signs of recovery. Domestically, proactive fiscal policies and the commencement of major projects have driven infrastructure investment, coupled with the replacement of existing equipment, suggesting continued improvement in domestic demand. Overseas, with the Federal Reserve cutting interest rates, the world has entered a period of easing, and investment is expected to recover, driving up equipment sales. Therefore, the construction machinery industry is expected to embark on a new upward cycle. However, this rating also faces major risks, including the risk of slower-than-expected domestic and international economic recovery, the risk of industrial policy adjustments, the risk of geopolitical and trade wars, the risk of intensified competition, the risk of raw material price fluctuations, and the risk of rapid technological iteration.
