The robotics industry is currently witnessing a significant transformation, particularly in China's A-share marketAs of February 16, 2024, 58 listed companies specializing in the robotics supply chain have disclosed their projected earnings for the upcoming year, revealing a positive trend in the sectorAmong these, 10 firms have forecast an increase in profits, 8 have rebounded from losses, and 2 anticipate slight growth, leading to an encouraging forecast rate of 34.5%. Several of these optimistic companies have attributed their expected performance to the advancements in artificial intelligence (AI) technology, which have prompted a noticeable recovery in the consumer electronics sectorAdditionally, the flourishing new energy market has further bolstered company earnings across the board.

One key driver of this recovery is the heightened demand for consumer electronics and new energy solutions, which has allowed firms like Changying Precision to excelThe company estimates that its net profit for 2024 will range between 700 million to 820 million yuan, signifying an astonishing year-on-year increase of 716.78% to 856.79%. This remarkable growth can be credited to the company’s compelling position in the market, as they are not only cultivating a diverse portfolio that includes various robotic applications—such as vertical and horizontal multi-joint robots—but also maintaining a substantial supply chain of precision components, like gears and bearings essential for humanoid robotsIn a strategic move, Changying Precision has launched a wholly-owned subsidiary, Shenzhen Changying Robot Co., focusing on intelligent robotic components, which has already integrated into the supply chains of major global players in humanoid robotics.

Similarly, Allwinner Technology is making waves within the industry by anticipating a net profit increase of 566.29% to 727.42%, projecting earnings between 153 million to 190 million yuan for 2024. The company has taken proactive measures to respond to recovering market demands by enhancing their product lineup

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The growth of their new product lines, especially in the fields of automotive and smart home robotics, cemented their status with a revenue increase of approximately 35% year-on-year.

Goertek, another frontrunner in the robotics landscape, is also set to record substantial growth, with an expected net profit ranging from 2.557 billion to 2.775 billion yuan, translating to a 135% to 155% increase from the previous yearThe resurgence of consumer demand in electronics, largely driven by innovations in AI, has positioned Goertek well as it continues to push boundaries in producing high-precision components and smart hardware, including developments in virtual and augmented realities.

Investment in robotics is also gaining attention among various companies, and one such example is Fulian Precision, which has announced plans to invest 110 million yuan to set up a research and production base for robotic intelligent electric joint modulesThis investment is aimed at enhancing the company's product offerings and further securing their competitive edge in the smart robotics industry by expanding into the new energy vehicle sector.

In spite of endeavors to adapt and thrive, some companies have experienced challenges, especially in the realm of industrial roboticsFor instance, Efort Robotics has reported a decline in revenue in their robotics sector due to shifting market demands and ongoing fierce competition, despite an over 30% increase in their robotics sales.

Moreover, the human-robot interaction space continues to blossom, fueled by collaborative initiatives among listed companiesHuichuan Technology has declared its commitment to developing parts for humanoid robots, including motors and actuators, responding to growing industry demandsMeanwhile, Lingyi Technology has expressed ongoing partnerships with prominent domestic robotics enterprises, leveraging its technology to offer critical manufacturing services for humanoid robotics.

In a significant collaboration, Xiangxin Technology and the Guangdong Academy of Sciences have agreed to create a Joint Technology Innovation Center, aiming to streamline the entire process of humanoid robot development and production.

Analysts from Huatai Securities forecast that 2025 may mark a watershed moment for the commercialization of humanoid robots

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