To understand East China CNC, one must first understand the investment logic of the machine tool and tool industry, otherwise it is equivalent to blindly following the trend and trading stocks.

Machine tools are the carrier of advanced manufacturing technology and the basic production means of equipment industry. They are the basic equipment of equipment manufacturing industry, mainly serving industries such as automobiles, military industry, agricultural machinery, engineering machinery, electrical equipment, railway locomotives, and ships. China has become the world's largest consumer and importer of machine tools for several consecutive years, and the third largest producer of machine tools in the world.

Below, we will analyze the investment logic of the machine tool and tool sector from the perspectives of market space and industry direction:

★From the perspective of market space:

According to market expectations, by 2025, the domestic market share of high-end CNC machine tools and basic manufacturing equipment will exceed 80%, and the overall high-end CNC machine tools and basic manufacturing equipment will enter the ranks of world powers. The energy conservation and environmental protection requirements that match the growth of China's economy and the improvement of its international status, as well as the development of emerging industries, will also bring about an upgrading demand for the consumption level of machine tools, which will bring greater development opportunities to enterprises with unique competitive advantages in the machine tool industry.

★From an industry perspective:

The growth of the domestic economy has driven the recovery and growth of demand in the machine tool market. With the recovery of the manufacturing industry and the cycle of machine tool updates, the machine tool industry will usher in a once in a decade upward trend. At the same time, with the improvement of capacity utilization and expansion, the performance of domestic machine tool leaders has been partially realized。

In summary, with the increasing market space and positive industry trends, the prosperity of the machine tool industry will continue to rise.