February 26, 2026 08:21 PM GMT Robotics | North America Humanoid Horizons: Can US and China Collaborate on Robots? China-based robotics suppliers appear to be targeting a deeper US market expansion at the same time that US companies are pushing for new domestic capacity. The upcoming Trump/Xi meeting could shape the direction of US-China robotics engagement in the years ahead. Key Highlights on Humanoids 2 Months into 2026: | M February 26, 2026 08:21 PM GMT Humanoid Horizons: Can US and | Morgan Stanley & ...

Summary of the Conference Call on Asia Emerging Robotics Industry Overview - The conference call focused on the robotics industry in Asia, particularly highlighting the performance of humanoid robots during the 2026 Spring Festival Gala in China, which is a significant cultural event and widely viewed television show [1] Key Companies Discussed - **Unitree**: A leading player in the robotics space, known for its advancements in locomotion and reliability [2] - **MagicLab**: Another Chinese robotics company that showcased its robots during the Gala [3] - **Noetix**: Participated in the Gala, demonstrating progress in robotics [3] - **Galbot**: Featured dexterous hands from a startup founded by Hesai's founders [4] - **Hesai**: Supplier of LiDAR technology used in Unitree's robots, indicating strong collaboration and technological advancements [4] Core Insights and Arguments - **Unitree's Performance**: - Demonstrated high reliability in robot movements, crucial for the Gala's political and entertainment significance [2] - Successfully managed fleet control with over 20 robots on a dynamically changing stage, showcasing advanced perception and navigation capabilities [2] - Hardware improvements allowed robots to perform continuously without cooling intervals, indicating enhanced durability [2][4] - **Progress of Other Chinese Players**: - MagicLab and Noetix showed significant improvements compared to their previous performances, indicating rapid advancements in the Chinese robotics sector [3] - Although still behind Unitree, these companies are progressing quickly, suggesting a competitive landscape [3] - **Hesai's Technological Edge**: - The LiDARs provided by Hesai demonstrated high resistance to vibration and impact, essential for robotic applications [4] - The establishment of Sharpa, focusing on dexterous hands, reflects Hesai's ambition and diversification in robotics [4] Implications for the Western Robotics Market - Unitree's performance sets a new benchmark for robotic locomotion, potentially increasing pressure on established players like Boston Dynamics [5] - The upcoming unveiling of Tesla's Optimus Gen 3 will need to demonstrate advancements beyond locomotion to remain competitive [5] Investment Ratings - Investment ratings for companies in the robotics sector were provided, with specific ratings for Shuanghuan, Hesai, and Tuopu as Outperform, while Sanhua was rated Market-Perform and Leader Drive Underperform [27] Risks and Opportunities - **Hesai**: Risks include potential LiDAR failures leading to accidents, sanctions from the US, and loss of market share [37] - **Leader Drive**: Opportunities exist in entering the humanoid robot market and gaining market share in strain-wave reducers [38] - **Tuopu**: Risks include Tesla's performance and geopolitical issues affecting investor interest [40] - **Sanhua**: Upside risks involve Tesla's progress in robotics and energy solutions, while downside risks include market interest fluctuations [41] Conclusion - The conference highlighted significant advancements in the Asian robotics industry, particularly through the performances at the Spring Festival Gala. Companies like Unitree and Hesai are leading the charge, while other players are rapidly catching up. The implications for Western competitors and investment opportunities in this sector are noteworthy, with various risks and potential rewards identified for investors.

Summary of Key Points from the Conference Call Industry Overview - The automotive sector is undergoing significant transformation with advancements in electrification, automation, and informatization, potentially leading to a revolution in transportation similar to the introduction of the moving assembly line by Ford over a century ago [2][10] Autonomous Driving and Robotaxi Trends - The shift from rule-based systems to end-to-end (E2E) architectures and variable large architectures (VLA) is evident, with many companies pursuing hybrid designs that combine safety mechanisms with AI models [3] - Advanced Driver Assistance Systems (ADAS) and Autonomous Driving (AD) penetration is expected to rise significantly, with L2+ systems projected to reach approximately 34% penetration by 2035, up from 12% in 2025 [5] - The global robotaxi market is anticipated to grow to USD 67.3 billion by 2030, with China being the most scalable market due to supportive policies and deployment momentum [6] Key Players and Strategies - Major automakers are adopting diverse strategies for autonomous driving: - **Toyota** is pursuing a multi-pathway strategy, combining in-house development with partnerships [10] - **Honda** is focusing on developing its own E2E system while collaborating with Helm.ai [10] - **Nissan** is leveraging Wayve's E2E technology [10] - In China, companies like **Pony.ai**, **WeRide**, and **Apollo Go** are leading the robotaxi deployment, with significant partnerships enhancing their capabilities [45] Investment Implications - Japanese automakers are expected to launch software-defined vehicles (SDVs) starting with Toyota's RAV4 in 2025, followed by Honda's 0 Series and Sony Honda Mobility's AFEELA in 2026 [10] - The transition to SDVs presents both opportunities and risks for traditional auto parts suppliers, as automakers increasingly assert control over software layers, potentially eroding supplier revenues [11] - The Japanese government has set a target for 30% SDV penetration by 2030-2035, which may accelerate strategic initiatives across the sector [12] Market Ratings - **Outperform Ratings**: Toyota, Suzuki, BYD, Xiaomi, Li Auto, Grab, BMW, Ferrari, Renault, Aston Martin, Hesai, Tuopu - **Market-Perform Ratings**: Honda, Denso, XPeng, NIO, Volkswagen, Mercedes, Stellantis, Volvo Cars, Continental - **Underperform Ratings**: Nissan, Mazda, Subaru, Black Sesame, Daimler Truck [12][15][17][26] Additional Insights - The integration of advanced technologies in the automotive sector is leading to a shift in competitive dynamics, with traditional OEMs partnering with tech companies to enhance their offerings [14] - The development of autonomous driving capabilities is closely linked to the operational design domain (ODD), which defines the conditions under which autonomous vehicles can operate [41][42] - The future of tyre technology is also evolving, with tyres expected to function as sensors that communicate data to vehicles, enhancing predictive maintenance and driving performance [18]

Summary of China Auto Manufacturers Conference Call Industry Overview - **Industry**: China Auto Sector - **Outlook for 2026**: The sector is expected to face both positives and negatives, with a cautious outlook for the first half of the year. Key Positives 1. **Surging LiDAR/ADAS/Robotaxi Penetrations**: Increased adoption of advanced technologies is anticipated to drive growth in the sector [1] 2. **Export Growth**: Projected export growth of 19% YoY, with New Energy Vehicles (NEV) expected to grow at 49% YoY [1] 3. **Commercial Vehicle Demand**: Demand for commercial vehicles is in a favorable position due to overseas demand and a stabilizing domestic market [1] 4. **End of Price Cuts**: The trend of price cuts in passenger vehicles (PV) is expected to come to an end, stabilizing margins [1] 5. **Market Concentration Improvements**: Gradual improvements in market concentration and utilization rates are expected, with overall NEV sales per model projected to increase slightly [1] Key Negatives 1. **Cost Inflation**: Anticipated cost inflation may erode auto maker net profit margins (NPM) by 2-5 percentage points [1] 2. **Cautious Outlook for 1Q/2Q**: A very cautious outlook for the first two quarters, with EV retail sales expected to slow to 4% and 0% YoY respectively [1] 3. **Lower PV Wholesale/Retail Forecasts**: FY26 wholesale and retail forecasts for PV have been lowered to -3.8% and -9.6% YoY, with internal combustion engine (ICE) vehicles expected to decline by 25% YoY [1] 4. **High ICE Inventories**: Concerns over high ICE inventories leading to destocking issues [1] 5. **Earnings Forecast Cuts**: Valuations have bottomed, but consensus earnings forecasts are expected to be cut soon [1] Stock Recommendations - **Stocks to Buy**: 1. **BYD**: Strong export and domestic consolidation potential [11] 2. **Pony/WeRide**: Benefiting from the China robotaxi upcycle [11] 3. **Hesai**: Growth in L3 policy, exports, and new robotic business [11] 4. **Weichai**: Data center-related energy supply solutions [11] 5. **Minth**: Data center cooling solutions and robot parts [11] Market Trends - **Pricing and Consolidation**: No significant price cuts are anticipated in 2026 due to anti-involution regulations and rising raw material costs, which may drive industry consolidation [3] - **Global PV Market Shares**: China's PV export sales are projected to maintain strong growth, with NEV exports driving this growth [4] - **Earnings Visibility**: Companies like Seres, Li Auto, SAIC, Changan, and GAC are expected to underperform due to margin dilution and negative sales outlooks for ICE vehicles [2] Additional Insights - **High Beta Rally**: Potential high-beta rallies may favor tech and ADAS/robotaxi companies over traditional NEV makers due to decelerating growth [5] - **Commercial Vehicle Outlook**: Positive outlook for commercial vehicle manufacturers like Sinotruk, driven by decent orders growth and potential policy stimulus [14] - **Inventory Levels**: High inventory levels for PVs and NEVs indicate a cautious market environment, with end-2025 ICE inventories reported as high to very high [22] This summary encapsulates the key points from the conference call, highlighting the current state and future outlook of the China auto sector, along with stock recommendations and market trends.

Core Insights - Hesai is recognized as a leader in the global lidar industry, ranking first in total patent holdings and overall patent strength among lidar companies, and third globally behind Bosch and Waymo [1][2][9] Patent Holdings and Innovation - From 2021 to 2025, Hesai has led the industry with a total of 2,071 granted patents and pending applications, establishing a multi-country patent network across key technologies [2] - Since July 2021, Hesai has filed over 920 patent applications, forming 558 patent families, including 400 new invention patents, reflecting a systematic approach to technological innovation [3] Anti-Interference Technology - Hesai is recognized as the industry leader in anti-interference patents, holding 33 patent families that enhance lidar reliability in complex environments [4] - The company's Intelligent Processing Engine (IPE) significantly improves perception accuracy by filtering over 99.9% of environmental noise [4] Core Component Development - Hesai ranks first globally in patent holdings for core lidar components, including SPAD/SiPM detectors, VCSEL emitters, and APD detectors, with its SPAD/SiPM patent portfolio being twice that of Bosch [6] - The company has developed all seven core components in-house, achieving AEC-Q automotive qualification for 16 ASICs and delivering 185 million units, leading the lidar industry [7] Patent Strength Metrics - Hesai's patent portfolio has a strength index of 2,549, an average family strength of 4.57, and a technological impact factor of 0.20, ranking third globally [9] Market Performance - In 2025, Hesai delivered over 1.6 million lidar units, including 1.4 million for ADAS and over 200,000 for robotics, becoming the first lidar company to surpass 2 million cumulative deliveries [10] Future Plans - At CES 2026, Hesai announced plans to double its annual production capacity to 4 million units and build a new factory in Thailand, alongside a strategic partnership with Nvidia for L4 autonomous driving [11] - The company aims to continue focusing on automotive and robotics markets, enhancing global smart mobility and perception capabilities [12]

Core Viewpoint - Hesai Group, a leader in lidar solutions, is convening an extraordinary general meeting (EGM) on March 3, 2026, to consider proposed resolutions supported by the board of directors [1] Company Information - Hesai Technology is recognized as a global leader in lidar solutions, providing products for various applications including advanced driver-assistance systems (ADAS), autonomous vehicles, and robotics [4] - The company integrates in-house manufacturing with lidar research and development, ensuring rapid product iteration and maintaining high performance and quality [4] - Hesai has established offices in Shanghai, Palo Alto, and Stuttgart, serving customers in over 40 countries [4] Meeting Details - The EGM will take place at 3:00 p.m. Beijing time, following class meetings for holders of Class A and Class B ordinary shares, which will occur earlier on the same day [1][2] - Shareholders of record as of February 2, 2026, are entitled to attend and vote at the EGM [3]

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: China Autos & Shared Mobility [1] - **Market Dynamics**: The LiDAR and AD chip markets are experiencing significant shifts in market share among key players [1] LiDAR Market Insights - **Market Share Trends**: - Huawei's market share decreased to 39% in November 2025, down 1.6 percentage points month-over-month but up 9.8 percentage points year-over-year [2] - Hesai maintained a market share of 31%, down 1.3 percentage points month-over-month but up 1.0 percentage point year-over-year [2] - Robosense's market share remained stable with a slight increase of 0.1 percentage points month-over-month [2] - Seyond showed improved sales momentum with a 1.9 percentage point increase month-over-month [2] - **Volume Sales Composition**: Main LiDAR accounts for approximately 60% of volume sales, with blind-spot LiDAR making up the remainder [2] AD Chip Market Insights - **Market Share Leaders**: - NVIDIA continues to dominate the AD chip market with a 52% volume share, an increase of 12 percentage points year-over-year [3] - Tesla China's market share fell by 11 percentage points year-over-year due to weaker domestic sales [3] - Horizon's market share increased by 1 percentage point year-over-year, reaching 9-10% [3] - **Localization Efforts**: China's initiative to localize auto chips has not yet resulted in significant changes in the AD chip market [3] Adoption of Advanced Driver Assistance Systems (ADAS) - **L2++ Adoption Growth**: Sales penetration for L2++ systems reached 34% in November 2025, reflecting a 4 percentage point increase month-over-month and a 20 percentage point increase year-over-year [12] - **Future Projections**: The risk to current sales penetration estimates for L2++ is skewed to the upside, indicating potential for higher adoption rates than previously forecasted [12] Technology Hardware Growth - **Content Growth**: Despite overall volume growth, the increase in content per vehicle is driving additional growth for technology hardware, specifically LiDAR and AD chips [12] - **Competitive Landscape**: Huawei leads in LiDAR sales due to broader model coverage, while Hesai remains a strong player among standalone LiDAR manufacturers [12] Conclusion - The LiDAR and AD chip markets in China are undergoing significant changes, with key players adjusting their strategies in response to competition and market demands. The growth in ADAS adoption suggests a positive outlook for technology hardware in the automotive sector [1][12]

Core Insights - The article discusses the Asia Value & Moat Stocks research service, which targets value investors looking for significant discrepancies between stock prices and intrinsic values, focusing on deep value balance sheet bargains and wide moat stocks [1] Group 1: Investment Strategy - The service emphasizes investing in stocks that are undervalued, such as net cash stocks, net-nets, low price-to-book (P/B) stocks, and those with sum-of-the-parts discounts [1] - It also highlights the importance of wide moat stocks, which are characterized by strong earnings power at discounted prices, including high-quality businesses and hidden champions [1] Group 2: Market Focus - The research service specializes in the Asian equity market, particularly the Hong Kong market, leveraging over a decade of experience in both buy and sell sides [1] - Monthly updates and watch lists are provided to keep investors informed about potential investment opportunities [1]

Core Insights - Allianz is partnering with Anthropic to integrate artificial intelligence (AI) across its global insurance operations, with initial projects already in progress [2][4]. Group 1: Partnership and Implementation - The collaboration aims to incorporate Anthropic's Claude models into Allianz's internal AI platform, enhancing software development and data integration for employees [3]. - Custom AI agents are being developed to automate workflows and streamline processes such as documentation intake and claims processing, allowing employees to manage complex cases more effectively [4]. Group 2: Focus on Compliance and Safety - Allianz and Anthropic are co-developing AI systems that ensure traceability and compliance by logging decisions, rationales, and data sources related to AI-driven actions [4][5]. - The partnership addresses critical challenges in the insurance sector, emphasizing safety and transparency in AI applications [5]. Group 3: Market Context and Growth - Anthropic reported significant growth, with over 300,000 business accounts and a run-rate revenue increase from approximately $1 billion in early 2025 to over $5 billion by August [6]. - The insurance industry is increasingly adopting generative AI models to combat sophisticated fraud techniques, highlighting the urgency and importance of AI integration [7].

Core Insights - Hesai Technology has been selected by NVIDIA as a lidar partner for the DRIVE AGX Hyperion 10 platform, which is aimed at accelerating the development of Level 4-capable vehicles [1][2]. Group 1: Partnership and Technology - Hesai's lidar technology will be integrated into an open, production-oriented architecture that automakers and developers can utilize to create and validate autonomy-ready systems [2]. - The Hyperion 10 platform combines various sensing modalities, including cameras, radar, lidar, and ultrasonic sensors, into a unified setup for enhanced perception and safety development [2][3]. - NVIDIA's platform is powered by two DRIVE AGX Thor systems-on-a-chip, delivering over 2,000 FP4 teraflops of processing power for real-time, 360-degree sensor fusion [3]. Group 2: Product Features and Applications - Hesai will support the Hyperion 10 platform with its ETX ultra-long-range lidar, designed for Level 3 and Level 4 applications, featuring high resolution and options for clean vehicle integration [3]. - The company is also expanding into new sensing use cases, including 3D motion capture technology, indicating a broader focus on spatial data and real-time perception beyond the automotive sector [4]. Group 3: Market Performance - Hesai's stock was trading higher by 1.67% at $27.08 at the time of publication, reflecting positive market sentiment following the announcement [4].