Investment Rating - The report maintains a "Recommended" investment rating for the humanoid robot industry [2][32]. Core Insights - The humanoid robot sector is experiencing significant product launches and events, such as the World Artificial Intelligence Conference (WAIC), which is expected to catalyze growth in the industry [32]. - The report emphasizes the importance of tracking the production progress of Tesla's Optimus and developments from domestic companies like Huawei and Yushu Chain to capitalize on the industry's expansion in 2025 [32]. Summary by Sections Market Review - From July 21 to July 25, 2025, the humanoid robot index increased by 2.13%, outperforming the Shanghai Composite Index, which rose by 1.67% [5][12]. - Notable individual stock performances included North Rare Earth (+16.05%) and Changsheng Bearing (+15.33%) [14]. Industry Dynamics - Yushu Technology launched its bipedal humanoid robot R1, priced starting at 39,900 yuan, featuring 26 joints and advanced motion capabilities [5][18]. - The WAIC showcased over 150 humanoid robots, marking the highest participation in its history, with various companies demonstrating applications in retail, industrial, logistics, and urban services [21][22]. - Tesla's Optimus robot began service in a restaurant, generating $47,000 in revenue within six hours, indicating strong market interest [24][25]. Company Developments - ByteDance introduced the GR-3 VLA model and the ByteMini robot, designed for household tasks with advanced capabilities [25]. - UBTECH launched the Walker S2, an industrial humanoid robot, featuring innovative technologies for autonomous operations [27][30]. Investment Recommendations - The report suggests focusing on companies with high certainty and incremental technology, particularly those linked to Tesla, Yushu, and Huawei [32]. - Key stocks to watch include those in the Tesla chain (e.g., Sanhua Intelligent Control, Top Group) and Yushu chain (e.g., Changsheng Bearing, Mannesmann) [32][33].

Group 1: Industry Overview - The Shanghai 2025 World Artificial Intelligence Conference (WAIC) showcased over 150 humanoid robots, marking the largest display of its kind, highlighting China's leadership in AI applications [1] - A Morgan Stanley report indicates that China holds a dominant position in the AI robotics sector, with the gap between the US and China widening [1] Group 2: Company Developments - Yushu Technology launched its new bipedal humanoid robot R1 at a starting price of 39,900 yuan, and showcased combat robots at WAIC, indicating a focus on practical applications [2] - Fourier, a smart robotics company, presented a medical companion robot designed for emotional interaction, showcasing advancements in healthcare robotics [3] - Star Motion Era demonstrated a robot capable of complex movements and has received orders from top global tech companies, indicating strong international demand [3] Group 3: Market Trends - Chinese humanoid robot companies are increasingly focusing on overseas market needs, which will enhance product modularity and patent strategies [4] - Major Chinese tech firms presented their latest AI research at WAIC, emphasizing the resilience and growth of China's AI industry despite US sanctions [4] Group 4: Technological Innovations - XREAL showcased its AI-powered smart glasses, which integrate AR and AI technologies, enhancing user experience with features like 3D visuals and real-time translation [5][6] - Alibaba introduced its Quark AI glasses, which address common issues in existing products, aiming to penetrate the consumer market effectively [6] Group 5: Competitive Landscape - Experts assert that China has surpassed the US in humanoid robot "physical" control capabilities, reflecting a shift in competitive dynamics in the robotics sector [8] - The manufacturing and data advantages of Chinese companies in humanoid robotics are highlighted as key factors in their competitive edge over US firms [9] Group 6: Future Prospects - Chinese humanoid robot manufacturers plan to extend their supply chains to ASEAN countries, aiming for international collaboration in the robotics industry [10]