On June 19, 2026, the automation equipment sector strengthened across the board, closing overall up 1.43%. Subdivided tracks such as industrial robots, industrial control core components, and lithium battery/semiconductor special equipment rose simultaneously.
This market is not a short-term emotional pulse, but the result of the fourfold logical resonance of policy, cycle, domestic substitution, and downstream demand.
The following will first sort out the underlying drivers of the overall rise in the sector, and then dismantle the independent rise logic of the six representative targets.
The sectors are strong across the board, and the four common core drivers
1.
Top-level policies are being implemented intensively, and smart manufacturing is facing a funding tilt
The 15th Five-Year Plan lists smart manufacturing, industrial machines, and humanoid robots as core development directions. Many ministries and commissions have introduced special plans for the intelligent transformation of the manufacturing industry. Trillions of funds for factory technical transformation have continued to be released. Enterprises can enjoy 15%-30% subsidies for purchasing domestic automation equipment.
The Shanghai Stock Exchange Science and Technology Innovation Board has added a secondary industry classification of “robotics” to guide long-term funds to continue to deploy automation and hard technology enterprises, and policy dividends continue to be released.
At the same time, the central bank has set up a special low-interest credit of 1.2 trillion for smart manufacturing to reduce the cost of enterprise expansion and research and development, and the industry chain order expectations continue to increase.
2. The industry cycle has bottomed out and demand for OEM equipment has rebounded significantly
In the first quarter of 2026, the automation OEM market will grow by 6.64% year-on-year, completely reversing the previous continuous downward cycle.
The four major downstream capital expenditures of lithium batteries, new energy vehicles, semiconductors, and 3C electronics have picked up. Production line updates and new production capacity have driven the bulk purchase of automation equipment. Coupled with the implementation of the national policy of eliminating and updating old industrial equipment, the stock replacement market has opened up room for growth. The industry order scheduling cycle has lengthened, and the performance in the second and third quarters is expected to continue to be fulfilled.
3. The domestic substitution of core components is accelerating and the profitability of the industrial chain is restored
The localization rate of core components such as servo motors, precision reducers, industrial PLCs, and machine vision has exceeded 60%, breaking the long-term monopoly of overseas brands.
The cost advantage of local manufacturers is highlighted. Downstream factories actively switch to domestic equipment. Coupled with the decline in upstream chip prices, the gross profit margin of automation companies continues to recover. Institutions raise their full-year profit forecasts, and valuations have a window for recovery.
4. AI+ humanoid robots open up the second growth curve
2026 is the first year for the commercialization of humanoid robots. Several large purchase orders of thousands of units have been placed domestically. Industrial automation components have the same technology as humanoid robot joints and transmission components. Traditional automation equipment manufacturers have simultaneously benefited from the new track growth.
AI industrial vision and intelligent control systems are embedded in automated production lines, increasing the added value of equipment and opening up the mid- to long-term growth ceiling.
Analysis of the rising logic of the six segmented leaders one by one
Target 1: Inovance Technology (industrial control servo leader)
The core logic of the rise: domestically produced industrial control platforms replace the leading ones, benefiting from both traditional automation and humanoid robots.
Domestic servo and medium-sized PLC market share ranks first in the industry, with comprehensive customer coverage for new energy, lithium batteries, and logistics automation equipment. Technical reforms in the downstream manufacturing industry have brought stable equipment orders, and industrial control business revenue has grown steadily in the first quarter; core components are independently controllable, and reducers and servo drives are self-developed, significantly reducing external procurement.
Costs and gross profit margins continue to improve; it enters the track of core joint parts of humanoid robots, and motors and drives are supplied to robot manufacturers in batches, adding a second growth curve; overseas markets continue to expand, and exports of new energy factory automation equipment in Southeast Asia increase, hedging against small fluctuations in the domestic industry, and medium and long-term growth is more certain.
Target 2: Topstar (industrial robot + injection molding automation equipment)
The core logic of the increase: the basic market of 3C/plastic automation is stable, and the volume of industrial robots is increasing.
Deeply engaged in intelligent production lines in the injection molding industry, demand for automation equipment for consumer electronics and home appliance plastic parts has picked up, and orders for traditional main businesses have improved month-on-month; self-developed six-axis industrial robots are suitable for low-cost “machine substitution” in small and medium-sized factories, and subsidies for technical transformation in various places have driven the purchasing demand of small and medium-sized enterprises.
Demand, robot shipments have increased significantly year-on-year; equipped with self-developed controllers and visual inspection equipment, the one-stop production line solution has outstanding competitiveness and strong customer stickiness; benefiting from the equipment update policy, a large number of old injection molding production lines have been renovated and replaced with automation equipment, and short-term order flexibility is sufficient.
Target 3: Robotco (photovoltaic + lithium battery intelligent special equipment)
The core logic of the rise: the leader in new energy high-end automation equipment, and the high downstream prosperity continues to drive it.
As a core supplier of intelligent production lines for photovoltaic cells and energy storage lithium batteries, iteration of new photovoltaic technologies and expansion of energy storage capacity continue to bring new equipment orders, and downstream capital expenditures remain high; full-process automation of the production line and integrated delivery of digital systems are in line with the policy guidance of factory intelligent transformation.
Centralized bidding for new energy industrial parks in many places has been implemented; localized equipment has replaced overseas imported high-end production lines, with outstanding cost-effectiveness advantages, and exports of overseas photovoltaic factory construction equipment have continued to grow; with the addition of supporting sales of AI visual inspection equipment, the value of a single production line has increased, and single-quarter revenue growth has led the sector.
Target 4: Green Harmonic (core components of precision reducer)
The core logic of the rise: the domestic leader in the “heart” of robots, the core beneficiary target of humanoid robots.
Harmonic reducers have the largest domestic market share. Core components for industrial robots and collaborative robots are in urgent demand, and the expansion of downstream robot manufacturers directly drives parts procurement. The products are introduced in batches into humanoid robot joints, and are strategically supplied by many domestic humanoid robot companies. They are the most flexible parts target for humanoid robots in the sector. With continued production expansion and process optimization, unit production costs continue to decline, and stable volume increases and prices lead to a substantial release of profits. The delivery cycle of foreign-invested reducers has lengthened, and downstream manufacturers have accelerated the switch to domestic components, and the space for domestic substitution continues to open.
Target 5: Central Control Technology (leader in industrial automation control systems)
The core logic of the increase: domestic substitution of process industry automation, dividends from technological transformation in chemical industry and energy.
Mainly engaged in DCS and PLC industrial control systems, covering the chemical, petrochemical, lithium battery materials and other process manufacturing industries, the core equipment required for the intelligent transformation of large factories; under the background of energy security, the production capacity of traditional chemicals and new materials continues to expand, and the number of supporting automation control system tenders has increased significantly; the integrated layout of industrial software + hardware, the digital factory solution benefits from the digital transformation plan of the eight-sector machinery industry, and the mid- and long-term increments are stable; state-owned enterprises and large manufacturing companies give priority to purchasing domestic industrial control systems, and policy inclinations bring continued large project orders.
Target 6: JPT (laser automation + industrial machine vision)
The core logic of the increase: precision laser automation equipment, 3C, and semiconductor dual-track resonance.
Laser welding and laser inspection automation equipment are suitable for consumer electronics and semiconductor packaging production lines. They are also widely used in AI computing hardware, optical modules and other fields.
As these areas develop, the demand for JPT’s equipment continues to increase, creating new growth opportunities.
