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Technological New Wave Spurs Industrial Transformation
Humanoid robots are demonstrating their own “speed and passion”—from catching tennis balls barehanded to performing fluid traditional dances. These futuristic machines are accelerating evolution, continuously breaking boundaries of human imagination and materializing in reality.
With technological advancements like artificial intelligence (AI), traditional equipment is being revitalized through digital transformation. This renewal fuels explosive growth potential and expansive opportunities for the humanoid robot industry, rapidly advancing China’s manufacturing supply chain toward high-end capabilities.
Public fund managers observe that many traditional manufacturing sectors, previously labeled “sunset industries,” are undergoing valuation reassessments. Previously, capital markets struggled to associate these firms with emerging industries or include them in watchlists. Now, they are recognized as critical components in the future humanoid robot ecosystem.
China’s burgeoning economic momentum finds stronger reflection in capital markets. Under this technological wave, iterative advancements spawn continuous innovation. Humanoid robots—integrating AI, precision manufacturing, and cutting-edge technologies—are growing at remarkable speeds amid disruptive innovation, driving profound transformations across conventional industries.
“This year may mark the first year of mass production for humanoid robots, with the industry standing at the threshold of commercialization from zero to one,” stated Yu Huan, fund manager at Great Wall Jiu Xin Fund. He noted that a U.S. tech giant’s announcement to produce thousands of humanoid robots in 2025 has drawn global attention, followed by numerous domestic and international enterprises entering the field. Industrial applications are likely initial adoption scenarios due to standardized processes and controllable environments. As technical bottlenecks resolve and costs decline, widespread industrial deployment is anticipated. Long-term, service sectors like companion and healthcare humanoid robots hold promise.
Increasing Chinese tech and manufacturing firms are now engaged in humanoid robot R&D. A complete humanoid robot involves multiple subsystems: motors, reducers, sensors, ball screws, encoders, and battery packs. China’s manufacturing prowess is pivotal in this industry’s expansion.
Yu Huan predicts the humanoid robot sector could replicate the developmental trajectories of smartphones or electric vehicles. Zhang Yinxian, fund manager at Ping An Fund, added, “Compared to smartphones and EVs, humanoid robots will have a longer growth cycle and larger market capacity. Leveraging China’s robust supply chain foundations and skilled engineering talent, domestic capabilities will underpin this industry’s advancement.”
China’s strengths include scalable hardware production, practical implementation expertise, and diverse manufacturing scenarios for application exploration. With China accounting for over one-third of global manufacturing output, humanoid robots’ core objective of human labor substitution creates vast domestic testing grounds for iteration and acceleration.
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Fund Managers Reevaluate Investment Logic
Early-stage investments in emerging industries are often thematic, experiencing high volatility driven by policy shifts and technological disruptions. However, as industries mature and penetration rates increase, growth investment logic gains validation.
Notably, during the current market cycle, the most significant stock fluctuations occurred among traditional manufacturing firms from so-called “sunset industries.” Though now viewed as key players in the humanoid robot supply chain, most fund managers previously excluded these companies from consideration for emerging-sector portfolios.
With demonstrable AI empowerment, fund managers are reassessing investment frameworks for humanoid robots. “Valuations appear elevated currently,” Yu Huan acknowledged, “but for high-growth sectors with clear trajectories, segmental valuation methods—separating new and traditional businesses—or discounted long-term cash flows remain appropriate. Using these models, leading enterprises still show reasonable valuations.”
A North China-based public fund manager emphasized that AI’s integration with traditional sectors grants the humanoid robot industry strong explosiveness and expansive potential. Guojin Securities noted that approaching mass production by tech giants and advancing software models have shifted humanoid robot investments from thematic to growth-driven opportunities.
Zhang Yinxian stated: “AI breakthroughs enhance the generalization capabilities of humanoid robots, expanding their functional boundaries.” He advocates treating humanoid robot stocks as long-term growth investments, citing irreversible trends like AI evolution, rising labor costs, and quality-of-life pursuits. Beyond startups, appliance manufacturers, internet platforms, and automakers are entering the field, accelerating industry diversification.
Yu Huan explained that conventional robots possess only “cerebellums” for linear motion control, while AI provides “brains” for human-like perception, learning, and decision-making. He identifies 2025 as the potential mass-production inflection point. For this high-growth sector with massive penetration upside, investors should adopt long-term perspectives.
“In the AI era, technology themes could become universal consensus,” remarked Yan Siqian, equity investment director at Penghua Fund. She highlighted humanoid robots as a trillion-dollar “AI+” industry at its infancy, offering China opportunities for technological leapfrogging.
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Themed Funds’ Performance Soars
While the humanoid robot industry remains nascent with modest corporate earnings, capital markets award high valuation premiums based on future potential. Stocks of related companies have surged, driving significant NAV growth for early-investing public funds.
Year-to-date, Penghua Carbon Neutrality Theme Fund delivered 69.45% returns, followed by Yongying Advanced Manufacturing Select Fund at 66.9%. Funds like Qianhai Kaiyuan Jiaxin, Zhonghang Trend Navigation, Ping An Advanced Manufacturing, and Qianhai Kaiyuan Shengxin all exceeded 50% gains. Over one year, Yongying Advanced Manufacturing Select, Penghua Carbon Neutrality Theme, and Zhonghang Trend Navigation achieved over 100% returns.
Portfolio disclosures reveal concentrated holdings in humanoid robot concept stocks. Market-sensitive fund managers are capturing alpha from the industry’s expansion. Analysts attribute the sector’s surge partly to accelerated software iterations overcoming product limitations.
Yu Huan suggested monitoring catalysts like tech giants’ entry into humanoid robotics, product launches and mass-production milestones, and policy developments including subsidies and industry standards.
Yan Siqian advised balancing technological “imagination” with financial “realities” by evaluating companies’ historical R&D capabilities, management competence, and financial health. Proven performers deserve greater weighting for innovation potential, while financially unstable firms require discounted expectations.
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Long-term Optimism, Short-term Rationality
Growth investing offers high returns but accompanies significant volatility. Amid current market exuberance, a South China-based fund manager expressed concerns over elevated valuations and amplified stock swings, urging investor rationality.
“Many valuations already price in several years of future revenue and profit contributions from humanoid robots,” Zhang Yinxian cautioned. “Short-term investors should note valuation透支 risks. If product launches underperform, corrections may occur—though they present entry points given the industry’s definitive direction.”
Yan Siqian echoed this view, emphasizing that while the humanoid robot trend is clear, undetermined industry landscapes require evaluating implementation timelines, geopolitical factors, and profitability challenges. She advised differentiating between sentiment-driven, logic-driven, product-driven, and earnings-driven opportunities while diversifying portfolios.
She noted that tech stocks often price in prospects ahead of fundamentals. Investors should prioritize industry trends, technological leadership, and historical execution capabilities. Retail investors face risks like rapid obsolescence and sentiment volatility—hence avoiding herd mentality and overconcentration in high-risk assets is critical.
Current humanoid robots require enhanced “brain” and “cerebellum” functionalities for delicate tasks like threading needles, alongside improved perception for speed, stability, and precision. Subsequent phases will address safety and endurance. Zhang Yinxian concluded that while humanoid robots hold immense potential, the investment journey will face turbulence; short-term surges may invite corrections typical of growth sectors.
Yu Huan identified key challenges: achieving human-like generalization abilities and drastic cost reductions. Some components face mass-production difficulties at low costs, potentially delaying commercialization. However, Chinese firms excel at cost-efficient scaling. Additional risks include slower-than-expected product iterations and limited application scenarios triggering sector volatility.
Notably, top-performing funds demonstrate prudence. Penghua Carbon Neutrality Theme and Yongying Advanced Manufacturing Select have capped individual subscriptions at ¥1 million since February 24 and February 13, respectively.