Market Overview - The Shanghai Composite Index fell by 0.31% on January 14, with 17 out of the 28 sectors rising, led by the computer and comprehensive sectors, which increased by 3.42% and 2.90% respectively [1] - The electronic sector rose by 1.36%, while the banking and real estate sectors experienced declines of 1.88% and 1.18% respectively [1] Capital Flow Analysis - The main capital outflow from the two markets totaled 71.378 billion yuan, with only three sectors seeing net inflows: computer (8.873 billion yuan), communication (2.824 billion yuan), and comprehensive (6.928 million yuan) [1] - The power equipment sector had the largest net outflow, totaling 14.433 billion yuan, followed by the electronic sector with a net outflow of 9.708 billion yuan [1] Electronic Sector Performance - In the electronic sector, 476 stocks were tracked, with 347 stocks rising and 118 stocks falling; three stocks hit the daily limit up [2] - The top three stocks with the highest net inflow were Huadian Co., Ltd. (1.377 billion yuan), BOE Technology Group (675 million yuan), and Haiguang Information (579 million yuan) [2] - The stocks with the largest net outflows included Zhaoyi Innovation (1.373 billion yuan), Changying Precision (1.290 billion yuan), and Luxshare Precision (1.220 billion yuan) [2] Electronic Sector Capital Inflow - The top stocks in the electronic sector by capital inflow included: - Huadian Co., Ltd. (6.02% increase, 137.718 million yuan inflow) - BOE Technology Group (3.14% increase, 67.494 million yuan inflow) - Haiguang Information (6.76% increase, 57.915 million yuan inflow) [2][3] Electronic Sector Capital Outflow - The top stocks in the electronic sector by capital outflow included: - Zhaoyi Innovation (-3.98% decrease, -1.372 billion yuan outflow) - Changying Precision (-4.13% decrease, -1.290 billion yuan outflow) - Luxshare Precision (-1.83% decrease, -1.220 billion yuan outflow) [4]

Group 1 - The main stocks with significant capital outflows include Haige Communication (-1.197 billion), TBEA (-1.048 billion), and Goldwind Technology (-0.998 billion) [1][2] - Haige Communication experienced a price increase of 10%, while TBEA and Goldwind Technology saw increases of 7.34% and 2.65% respectively [2][3] - Other notable stocks with capital outflows include China Satellite (-0.827 billion), Oriental Communication (-0.710 billion), and Zhongji Xuchuang (-0.673 billion) [1][2] Group 2 - The sectors represented by the stocks with the largest capital outflows include communication equipment, power grid equipment, and wind power equipment [2][3] - Stocks like Tianlong Group and Yidian Tianxia saw significant price increases of 16.52% and 17.47% respectively, despite experiencing capital outflows of -0.549 billion and -0.521 billion [2][3] - The data indicates a mixed performance across various sectors, with some stocks showing positive price movements while still facing substantial capital outflows [1][2]

Summary of Key Points from the Conference Call Industry Overview: Edge AI Market - **Increased Attention on Edge AI**: Since Apple introduced the Apple Intelligence project in 2024, the market's focus on edge AI has been rising, with advancements in large models and computing power laying the groundwork for AI applications by 2026 [1][2]. - **Maturity of AI Hardware**: Edge AI hardware forms, such as AI glasses and toys, have matured, with wearable devices increasingly capturing consumer interest. At CES 2026, AI interaction features became standard in consumer electronics and home products [1][2]. - **Policy Support**: National subsidy policies now include wearable devices like smartwatches, expected to drive growth by approximately 20% year-on-year. The inclusion of Rokid glasses in a procurement project for the disabled indicates demand stimulation through targeted promotions [1][4]. Key Drivers of Investment Opportunities - **Computing Power Upgrades**: The maturity of technology and models, alongside a competitive arms race in computing facilities, is making conditions for AI application deployment more favorable by 2026 [2]. - **Hardware Iteration**: The current maturity of edge AI hardware, particularly in wearables, is seen as a catalyst for growth. Despite skepticism about blockbuster products in 2025, devices like Rokid AI glasses are gaining traction among consumers [2]. - **Resilience of Edge AI**: In the face of rising storage costs, wearable devices are less affected compared to traditional consumer electronics, which are more vulnerable to cyclical fluctuations. The edge AI market remains in a high-growth phase with significant supply chain premium potential [1][4]. Product Launch and Shipment Forecasts - **AI Glasses Shipment Projections**: Meta anticipates shipping between 20 to 25 million units of AI glasses by 2027, while other brands like Thunder and Roku expect shipments of 300,000 to 500,000 units. Total shipments across all brands are projected to approach 3 million units by 2027, representing significant growth compared to 2025 [3][7]. - **Product Release Schedule**: Meta plans to launch three new products in 2026 and a new brand of AI glasses in 2027. Samsung and Huawei are expected to release new products by the end of Q1 or early Q2 2026, while Xiaomi may iterate its first-generation product this year [5][6]. Investment Recommendations - **Top Investment Picks**: GoerTek is highlighted as a leading company in the AI glasses market, expected to benefit significantly from market growth. Other recommended companies include Luxshare Precision, Lianyi Manufacturing, Lens Technology, Yutong Optical, Changying Precision, and Longqi Technology, all of which have promising market prospects [8]. SOC Sector Insights - **Investment Value of SOC Sector**: The SOC sector is viewed as having high potential due to the anticipated shift from cloud to edge computing over the next two to three years. SOC components represent the highest cost proportion in edge devices, with Chinese A-share SOC companies showing strong market share potential [9]. - **Volume-Price Dynamics**: The SOC sector is driven by new product cycles and flagship product releases, which are expected to enhance average selling prices (ASP). For instance, AI-enabled chips are projected to increase in price from $2 to $4 [10][11]. - **Inventory Adjustments**: Following a chip shortage in late 2021, inventory levels have normalized by early 2024, positively impacting earnings per share (EPS) for companies like Rockchip and Hengxuan, which saw stock prices rise by 30-40% during high inventory periods [12]. Future Outlook for SOC Industry - **Growth Projections**: The period from 2026 to 2027 is expected to see rapid growth in flagship products from leading companies, driven by national subsidy policies and the explosion of new AI products. The current low market expectations for the SOC sector suggest significant upside potential once market conditions improve [13].

Investment Rating - The report assigns an "Accumulate" rating for the robotics industry [3][4]. Core Insights - The CES 2026 highlighted the trend of embodied intelligence scaling, showcasing the strength of Chinese enterprises in this field [2]. - The focus for future investments is on the application of embodied intelligence, particularly in the "perception-decision-execution" loop, which is expected to create new hardware demands [3]. - Human-shaped robots are identified as a key carrier of embodied intelligence, with companies achieving technological breakthroughs and domestic replacements poised for significant growth potential [3]. - The shift from "digital intelligence" to "embodied intelligence" emphasizes the tangible results of AI, with CES 2026 themed "AI Inside Every Hardware" indicating a transition towards physical AI applications [3]. - Major semiconductor companies like NVIDIA, AMD, and Intel showcased new products, indicating a competitive focus on the deployment of edge AI and large-scale AI infrastructure [3]. - The report notes that human-shaped robots have demonstrated operational capabilities in unstructured environments and are beginning to be utilized in factory settings [3]. - The competition landscape is evolving, with over 4,100 exhibitors at CES, including 1,141 from China, highlighting the significant role of Chinese tech companies [3]. - Key players in the human-shaped robot sector, such as Yushun and Zhiyuan, are focusing on self-research and commercialization of core components [3]. - The hardware pathway for embodied intelligence is becoming clearer, with core supply chain segments starting to benefit, although the industry remains in the early stages of commercialization [3]. Summary by Sections Investment Recommendations - The report recommends focusing on companies like Hengli Hydraulic and Changying Precision, which are expected to benefit from the trends in embodied intelligence [3][4]. Market Dynamics - The report emphasizes the importance of two key validation points: the mass production progress and cost control of human-shaped robots like Tesla's Optimus, and whether AI-enabled terminal products can drive consumer demand for upgrades [3]. Financial Projections - Financial forecasts for recommended companies include: - Changying Precision: EPS of 0.48 in 2025E, increasing to 1.22 in 2027E, with a PE ratio decreasing from 92.67 in 2025E to 36.46 in 2027E [4]. - Hengli Hydraulic: EPS of 2.09 in 2025E, increasing to 2.86 in 2027E, with a PE ratio decreasing from 55.12 in 2025E to 40.28 in 2027E [4].

Core Viewpoint - The company has minimal involvement in commercial aerospace, primarily providing structural components for portable satellite communication stations, which contribute a small portion to overall revenue [2] Group 1: Company Products and Revenue - The company supplies precision components such as structural parts and transmission components for humanoid robots, but does not manufacture complete robotic systems [2] - The business related to portable satellite communication stations constitutes a very small percentage of the company's total revenue [2]

Core Viewpoint - The company has not yet established a partnership with Blue Arrow Aerospace and emphasizes that its involvement in portable satellite communication receiving stations is minimal in terms of revenue contribution [1] Group 1 - The company primarily provides precision components for humanoid robots [1] - The company will advance related business based on market conditions and customer demand [1]

Core Viewpoint - The company has confirmed that it does not have any business cooperation with Blue Arrow Aerospace, despite rumors circulating in the market [2] Group 1: Company Operations - The company provides structural components for portable satellite communication receiving stations, but this business segment contributes a very small proportion to the company's overall revenue [2]

Core Viewpoint - The company is currently focused on providing precision components for humanoid robots and will advance related business based on market conditions and customer demand [1] Group 1 - The company has been involved in the robotics sector for ten years [1] - There is a question from investors regarding the company's plans to launch complete robots or focus solely on components [1] - The company responded that it will consider market conditions and customer needs when deciding on future business directions [1]

Group 1 - The company is preparing for mass production of humanoid robots and has established close collaborations with several leading brands in the industry [1] - The company is actively expanding its production capacity to meet the upcoming demand for humanoid robots [1] - The company's intelligent manufacturing industrial park in Yanshan, Baoan District, Shenzhen, includes approximately 60,000 square meters of factory space dedicated to the production of humanoid robot-related products [1]

Group 1 - The core viewpoint of the article is that Changying Precision (300115) has indicated its involvement in providing structural components for portable satellite communication receiving stations, although this business contributes a very small portion to the company's overall revenue [1] Group 2 - The company confirmed its engagement in the portable satellite communication sector through an interaction on its platform [1] - The revenue contribution from this specific business line is minimal, highlighting its limited impact on the company's financial performance [1]