1、Asia Pacific Equity Research03 September 2025J P M O R G A NFactory Automation&RoboticsRiding the automation wave:Sector beats,innovation surges,and PT upgradesThis material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services wi

2、thin the territory of Mainland China.This material or any portion hereof may not be reprinted,sold or redistributed without the written consent of J.P.Morgan.Infrastructure,Industrials&TransportKaren Li,CFA AC(852)2800-Sunny Su(852)2800 Jenny Qiu,CFA(852)2800 Mufan Shi(852)2800-J.P.Morgan Securities

3、(Asia Pacific)Limited/J.P.Morgan Broking(Hong Kong)LimitedWe are raising price targets for all Factory Automation(FA)and robotics names under our coverageincluding Inovance,Yiheda,Estun,Leader Drive,UBTech,and Sanhuaon the back of a markedly improved sector outlook and accelerating innovation.Robust

4、 2Q25 results and confident management briefings signal that the industry is not only rebounding from prior headwinds,but is also capturing new opportunities in high-growth verticals such as new energy,automotive,and advanced manufacturing.A standout theme this quarter is the rapid acceleration in h

5、umanoid robot development,with domestic leaders moving from R&D to commercialization and mass production,positioning China as a global frontrunner in this transformative field.Companies are demonstrating stronger pricing power,disciplined cost management,and expanding market share,while regulatory a

6、nd anti-involution measures are fostering a more sustainable competitive environment.Our model updates reflect higher profit forecasts,faster margin expansion,and a more bullish long-term outlook,with upside potential ranging from 26%to 51%for the stocks we cover,noting our recent upgrade on Hengli