Industrial Machinery & Equipment

The industrial machinery and equipment industry heavily depends on the real economy investment cycle. Profitability is driven by revenue growth from revitalized capital expenditures and operational leverage from fixed cost structures. During downturns, lack of orders compresses profits; as demand recovers, new orders rapidly translate into revenue and profit. The strategy focuses on asset turnover and profit improvements, identifying target enterprises via financial metrics like income, ROIC, and profit elasticity.