自动化——中国10月制造业PMI解读

In this report, we focus on China's manufacturing PMI, which we see as a potential catalyst for AirTAC's and Hiwin's share prices. China's manufacturing PMI fell to 49.3 in October from 50.1 in September, lower than both our estimate and consensus of 49.9; the production index decreased 1.9ppt while the new order index declined 1.1ppt MoM. We believe the soft manufacturing PMI data could weigh on market sentiment in the near term. Nonetheless, we prefer supply players with company-specific drivers such as Airtac and Hiwin: Airtac (1590.TW, OW) should continue to benefit from its own share gains and incremental contribution from linear guides, with valuation undemanding at 16x 2027e P/E versus the 25x average since 2020; Hiwin (2049.TW, OW) should show more margin expansion in coming quarters supported by higher utilization and price hikes, with potential share price upside at the current 28x 2027e P/E versus peak cycle valuation of 35-40x. Industry view: In-Line.