Recently, the field of industrial mother machines has once again experienced an explosive situation. For example, Huazhong CNC has experienced a 20cm daily limit, and Rifa Precision Machinery, Dongtu Technology, etc. have performed strongly.
Funds are rotating along the “industrial machine → automation equipment industry chain”. The following is a detailed analysis of the logic and direction of rotation.
The outbreak of industrial machine tools has multiple driving factors.
The first is the triple turning point of policy, orders and technology.
Funds for equipment upgrades have been implemented, and subsidies for technical upgrades can reach up to 15%, and the high-end equipment development plan for the “15th Five-Year Plan” has been advanced.
In the first quarter of 2026, machine tool orders increased by 12.7% year-on-year, the output value of high-end five-axis exceeded 80 billion yuan, and the proportion of domestic CNC system installed capacity exceeded 35% for the first time.
Secondly, the driving effect of new demand is obvious.
In terms of AI computing power, the demand for liquid cooling plates, high-density PCB drill pins, etc. has increased, and humanoid robot precision parts such as screw housings and joint parts have also driven orders for high-end CNC machine tools.
At the same time, as the “manufacturing machine” upstream of robots, the industrial mother machine forms a closed loop of mass production of robots → expansion of mother machine production → upgrade of automation equipment.
Furthermore, funds have formed a consensus.
The Industrial Machinery ETF (159667) has increased by nearly 40% during the year, with a single-day increase of 3.51% on June 3, 2026. The main stage saw a net inflow of nearly 10 billion, and institutions covered underweight leaders, such as Code, Huazhong, Haitian, etc.
The rotation sequence of the automation equipment industry chain has its own transmission logic.
The first stage is the industrial mother machine (complete machine + core components), which is the first to respond to order expectations. Companies such as Kede CNC, Huazhong CNC, Haitian Precision, Neway CNC, and Yuhuan CNC have already experienced outbreaks.
The second stage is the upstream core components (upstream of automation equipment). The increased volume of mother machines drives upstream demand, and funds spread to “industrial control + precision components”, involving Inovance Technology, Xinjie Electric, VEICHI Electric, Leisai Intelligent, Wuzhou Xinchun, Changsheng Bearing, etc.
The third stage is general automation equipment (midstream integration/complete machine). With the recovery of the manufacturing industry and the implementation of equipment updates, orders for general equipment such as forklifts, air compressors, pump valves, logistics automation, etc. are repaired. Related companies include Hangcha Group, Anhui Heli, Yizumi, Honghua Digital, etc.
The fourth stage is the integration and application of downstream systems (intelligent production lines, machine vision, industrial software). As the intelligent transformation of factories advances, integrators and industrial AI/software can be realized, involving robots, Eston, Topstar, Tianma Intelligent Control, Central Control Technology, Suochen Technology, Fantuo Digital Innovation, etc.
Currently, the market is in the early stages of spreading from the first stage (the outbreak of mother machine leaders) to the second stage (upstream automation components). The third stage (general automation equipment) has been tested, such as low-level repairs such as Hangcha and Heli. The fourth stage is relatively lagging behind.
On June 8, the automation equipment sector fell slightly by 0.52%, but the internal differentiation was obvious. Upstream industrial control/components (Innovation, Xinjie, etc.) were relatively resistant to the decline. The 30cm daily limit of Beijing Exchange Juneng Co., Ltd. (automated production line integration) was a case-by-case group. The overall rotation has not yet been fully rotated, and is in the transition period of “after the leader breaks out and before the mid-term supplementary increase”.
The direction of rotation opportunities deserves attention.
Upstream automation core components (second echelon relay), such as servo/frequency conversion (Innovation Technology, VEICHI Electric, Sine Electric), PLC/HMI (Xinjie Electric, Megmeet), precision transmission (Wuzhou Xinchun, Changsheng Bearing, Zhongli De), sensor/machine vision (Tizhun Technology, OPT, Tahoe Intelligent), the valuation is at a discount compared to the parent machine, the organization is underweight, and there is large room for supplementary growth.
General automation equipment (third echelon, partial to cyclical repair), including forklifts (Hangcha Group, Anhui Heli), injection molding machines (Yizumi), laser equipment (Han’s Laser, Haimixing), air compressors/fluid machinery (Hanbell Precision Machinery, Kaishan Co., Ltd.), benefiting from the recovery of manufacturing PMI and export recovery, low and low valuations, suitable for steady rotation.
Downstream integration and industrial AI (the fourth echelon, see order verification), such as robot integration (Robot, Topstar, Mech), industrial software/physical AI (Zhongkong Technology, Suochen Technology, Nengke Technology), need to wait for the implementation of factory intelligent orders. They are currently following the trend and should not chase higher.
In terms of operating ideas, the main leaders (Kode, Huazhong, Haitian, Neway) have accelerated. It is not recommended to chase higher. You can wait for the volume to shrink and step back on the 10-20 day line to buy the core at a low price.
The first choice for upstream automation components is targets with “bottom volume + valuation discount + mother machine/robot supply chain relationship”, such as Xinjie, VEICHI, Wuzhou New Year, TZN, etc. They will buy low after stepping on the 5-10 day line, and the window for making up for the increase is about 3-5 days.
General Automation (Hangcha, Heli, Yizumi) made a procyclical repair band along the moving average, breaking the 20-day line and leaving the market.
Before the overall outbreak of the automation equipment sector, focus on buying low in the order of “mother machine → upstream components → general equipment” to avoid chasing intraday pulses.
It should be noted that this is based on public market conditions and research reports and does not constitute investment advice.
There are uncertainties in the manufacturing cycle, the implementation of equipment updates, and the pace of orders. Investments require independent judgment and risks.
