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].