Robotics Sector Surges Again as Global and Domestic Industry Momentum Accelerates, Making the Sector Attractive for Allocation

Stock News05-22 10:18

Robotics-related stocks are on the rise again. At the time of writing, Johnson Electric Holdings (00179) is up 10.29% to HK$30.02. Hesai Group (02525) has gained 7.28% to HK$170.9. Geekplus Technology (02590) has increased by 6.05% to HK$18.22. Dobot (02432) is up 5.00% to HK$34.0. Sanhua Intelligent Controls (02050) has risen 4.90% to HK$36.4.

The catalyst for the move is news from May 21st. The final batch of Tesla Model S and X vehicles has rolled off the production line at the Fremont, California factory, officially retiring these models. Their production lines will be repurposed for Tesla's humanoid robot, Optimus. It is understood that the Model S and X production lines will be dismantled and reconfigured within four months, transforming into a dedicated production line for Tesla's humanoid robot, with a planned annual capacity of one million units.

Furthermore, humanoid robot company Figure recently hosted a 24/7 live stream to document its F.03 robot handling small parcel sorting tasks. The company stated that the F.03 robot experienced no malfunctions over the past week.

AVIC Securities believes that looking ahead to May, the sector has entered a window of high cost-effectiveness for portfolio allocation. The driving factors include: intensive industry catalysts, such as Tesla completing the Model S/X production halt and initiating line conversion in early May, with the potential for the Optimus V3 to start production in Fremont in late July or August, and the expectation for batch orders from the domestic supply chain to materialize. Additionally, the acceleration of industry resonance both overseas and domestically is notable, with Figure announcing an increase in production speed from one unit per day to one unit per hour, achieving a 24-fold capacity expansion within 120 days. Domestically, State Grid's total investment in embodied AI is projected to exceed RMB 10 billion by 2026. Finally, positioning and sentiment have been adequately repaired. Following a previous deep correction, the sector has shed excess baggage, and the disruptions from the earnings season have subsided, making the sector's allocation appeal particularly prominent.

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