康明斯和迪尔的积极影响

Machinery powersupply-positiveread-acrossforCATandWeichai Head of Industrials Research,Asia PacificThe Hongkong and Shanghai Banking Corporation Limitedhelen.c.fang@hsbc.com.hk+85229966942Sunny SUN* read-acrossforCATandTechtronic Associate, Asia IndustrialsThe Hongkong and Shanghai Banking Corporation Limited sunny.x.y.sun@hsbc.com.hk+85239453230Kenneth Chin*, CFA SOFC potential),and Techtronic (AIDC construction demand) Associate, Asia IndustrialsThe Hongkong and Shanghai Banking Corporation Limitedkenneth.t.k.chin@hsbc.com.hk+85228224521Jennifer Pan* Cummins (CMI US, USD638.78, Not rated) hosted its Capital Markets Day, andDeere(DEUS,USD531.35,Hold)hosted its2Q26earningscall on21May.KeymessagesfurthervalidateourpositiveviewonCAT,WeichaiandTechtronic AssociateGuangzhou StrongAiDcpowerdemand:Onbackuppower,CMI continued to see strongdemand in the US and China. 95% of CMI power gen business is behind-the-meterTherefore, CMI announced a USD450m investment to add 20GW high-horsepowerexpectthetight supplytopersist toat least 2028.CMl announcedthedevelopmentof a 4MW gas engine solution with an expected 2028 launch, based on its existingHSK78platform(now1.6-2MW).Wesee it as apositiveread-acrossfor CAT (engineofferings up to 10MW with leading market positions) and Weichai (targeting deliveriesof 2.5-3MW gas gensets to the US from 4Q26) not registered/qualified pursuant to FINRA regulations AiDcbuildout lifting US constructiondemand:Despite investor concerns aroundhigherinterest rates,Deere's upgraded construction outlook reaffirmed steadyUsconstructiondemand,especiallydrivenbystrongAiDCandinfrastructurebuildoutDeere raised itsFY26Construction&Forestrynetsales growthguidanceto+20%vs+15% previously. Its order book is at the highest level since April 2024,with over80% of FY26 production slots filled. Deere also noted data center construction spendsupporting equipment demand across (i)large-scale sitepreparation(constructioncontractors)and (i) grid/cooling-related works (water and utility contractors). We seeit as a positive read-across forCAT's ConstructionIndustries and TTI's tool demand. Reiterate Buy ratings on CAT, Weichai and Techtronic: We like CAT for its multi-year ADC prime powerupside and strong market position.We like Weichai foritsprimepowerand SOFC potential.We likethatTechtronicbenefits fromAIDCbuildout (11% of TTI's sales). Key downside risks: slower AIDC buildout, higher rates. Sentiment, Al and Private Credit Click to view Issuer of report: The Hongkong and ShanghaiBanking Corporation Limited Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications inthe Disclosure appendix, and with the Disclaimer, which forms part of it. ViewHSBCGlobalInvestmentResearchat:https://www.research.hsbc.com Disclosure appendix The following analyst(s), economist(s), or strategist(s) who is(are) primarily responsible for this report, including any analyst(s) whose name(s) appear(s) as author of an individual section or sections of the report and any analyst(s) named as the coveringanalyst(s) of a subsidiary company in a sum-of-the-parts valuation certifies(y) that the opinion(s) on the subject security(ies) orissuer(s), any views or forecasts expressed in the section(s) of which such individual(s)is(are) named as author(s), and any otherviews or forecasts expressed herein, including any views expressed on the back page of the research report, accurately reflect Equities:Stockratings and basisforfinancialanalysis HSBC and its affiliates, including the issuer of this report ("HSBC") believes an investor's decision to buy or sell a stock should depend on individual circumstances such as the investor's existing holdings, risk tolerance and other considerations and thatinvestors utilise various disciplines and investment horizons when making investment decisions. Ratings should not be used orrelied on in isolation as investment advice. Different securities firms use a variety of ratings terms as well as different ratingsystems to describe their recommendations and therefore investors should carefully read the definitions of the ratings used ineach research report. Further, investors should carefully read the entire research report and not infer its contents from the rating From 23rd March 2015 HSBC has assigned ratings on the following basis:The target price is based on the analyst's assessment of the stock's actual current value,although we expect it to take six to 12 months for the market price to reflect this. When the target price is more than 20% above the current share price, the stock willHold; when it is between 5% below and 5% above the current share price, the stock will be classified as a Hold; when it is between5% and 20% below the current share price, the stock may be classified as a Hold or a Reduce; and when it is more than 20%below the current share price, the stock will be classified as a Reduce. Our ratings are re-calibrated against these b