On May 25, the industrial machine ETF Cathay Pacific (159667) closed up more than 1.5%, with net inflows of more than 370 million yuan in the past five days. This performance has attracted widespread attention to the recovery trend of the machinery industry.
Zhongyuan Securities analyzed the comprehensive machinery industry’s 2025 annual report and 2026 first quarter financial report and pointed out that the cyclical machinery sector, including shipbuilding, engineering machinery, nuclear power equipment, lifting and transportation equipment, machine tools and other parts, has entered the industry recovery stage, which has led to a gradual improvement in industry financial reports.
During the “14th Five-Year Plan” period, the heavy machinery and agricultural machinery industry has made significant progress in key core technology breakthroughs and industrial upgrading, laying a solid foundation for high-end, intelligent, and green development during the “15th Five-Year Plan” period.
Judging from industry financial report trends, the operating income growth rate of CITIC Construction Machinery Industry is steadily rising, and the recovery of the industry has led to the gradual recovery of profits.
The industrial robot industry continues to pick up, financial reports are being repaired at an accelerated pace, and industry fundamentals have significantly accelerated in 2026Q1.
The semiconductor equipment industry is developing steadily and has good performance growth. Performance growth and profitability have improved significantly in 2026Q1, reversing the trend of continuous decline in industry performance growth.
In shipbuilding, with the delivery of high-margin orders, corporate profitability and performance have significantly improved, and performance releases have accelerated.
The high-growth sub-sectors represented by photovoltaic equipment have become differentiated. Some sub-sectors have stopped growing, while general equipment such as basic components have achieved relatively steady growth, and many leading companies in the segment have stood out.
In the 2025 annual report, CITIC Machinery Industry’s revenue growth and net profit attributable to the parent company are both upward. The industry’s operating trend is improving, gross profit margins, and net profit margins are steadily rising. The industry will continue to be in good shape in 2026Q1.
The Industrial Machine Tool ETF Cathay (159667) tracks the CSI Machine Tool Index (931866), which selects the securities of listed companies involved in the manufacturing and services of complete machine tools and key parts from the Shanghai and Shenzhen markets.
As an index sample, the constituent stocks tend to be small and medium-cap style, mainly concentrated in the machinery and equipment industry, and also cover electronics, new energy and other fields. They have a high industry concentration to reflect the overall performance of China’s machine tool industry and focus on the profitability, growth and R&D innovation capabilities of enterprises.
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