This year's return is 39.7%. Zhang Yinxian: The humanoid robot market has a space of several trillion, and in the next few years or even 10 years, it may be the largest growth track

Recently, robotics concept stocks have been continuously active, which has led to substantial returns for actively managed funds that positioned themselves early, with several funds achieving returns exceeding 30% this year. Among them, the Ping An Advanced Manufacturing Theme Fund has seen returns close to 40% this year.

How should we view the investment value of the humanoid robot sector in the future? Is now a good time to invest?

Zhang Yinxian, the fund manager of Ping An Advanced Manufacturing, shared his latest insights during a recent roadshow.

Zhang Yinxian has 9 years of experience in the securities industry and joined Ping An Asset Management in 2018. As of February 19, the Ping An Advanced Manufacturing Theme Stock A Fund he manages has achieved a return of 39.74% this year, with a return of 92.89% over the past six months, ranking first in its category.

The fund's quarterly report shows that the Ping An Advanced Manufacturing Theme Fund mainly focuses on humanoid robots.

Regarding the reasons for heavily investing in robotics, Zhang Yinxian stated in the quarterly report, "We expect to soon welcome the mass production moment of the 'robot' new species. This sector will be one of the most capital market-focused tracks in the coming years. We insist on seeking investment opportunities from an industrial perspective."

"On one hand, we look for companies with a high probability of entering the supply chain in the robotics business; on the other hand, we actively explore and invest in excellent companies that have improved their core business fundamentals while expanding their robotics operations.

Such companies are expected to stand out in new materials, new processes, and new design solutions, allowing existing products to gain new application scenarios in the new robotics field, achieving breakthroughs from 0 to 1, and thus obtaining opportunities for both valuation and performance boosts."

During this roadshow, Zhang Yinxian reiterated the future market space and investment opportunities for humanoid robots, and the investment operations representative summarized the key points as follows:

1. The robotics industry is still in the process of moving from 0 to 1, and the recent rise over the past few months is primarily a transition from concept to mass production.

2. In terms of investment, we are currently transitioning from investing in concepts to investing in competitiveness.

The trend of the humanoid robot industry has already emerged, this year may be the year of mass production for various companies.

1. We have not yet reached the stage of seeing the performance of robotics companies materialize. The competitive landscape may gradually emerge in the second half of this year or next year.

2. In the coming years, even decades, robotics may be the largest growth sector.

From automobiles to households, and even to Mars, robots have wide applications, with a vast market space that could reach trillions. 5. The overall trend of humanoid robots is upward, but short-term fluctuations may be significant due to potential bottlenecks in software and hardware technology that could affect progress.

It is recommended to adopt a long-term investment strategy. When there is a significant short-term pullback, investments can be increased...

Below is the essence compiled by the class representative of the investment workbook (WeChat ID: touzizuoweben), shared with everyone:

DeepSeek Promotes Enhancement of Robot Capabilities

Host: After the arrival of the DeepSeek trend, how will the robot market develop?

Zhang Yinxian: The reason DeepSeek is so popular, in my opinion, can be summarized in three keywords: high quality, low price, and open source.

High quality is reflected in performance, as it excels in tasks such as mathematics, coding, and natural language reasoning, comparable to the official version of OpenAI's o1 model.

Low price refers to its very low training cost, which, according to public information, is about $5.5 million.

The third aspect is open source, which is very important. Many industries, including finance, have companies that want to develop their own AI agents, but the deployment cost of large models is very high.

Now, with open-source models available, many industries and companies can deploy quickly, and edge applications will also rapidly explode. For example, AI headphones, AI glasses, and robots all belong to AI edge applications and may rely on open-source models. Therefore, based on open-source models, many enterprises can build their own models.

Robots are indeed a typical carrier of AI applications, and in areas such as data processing, perception, motion control, human-computer interaction, autonomous learning, and adaptation, DeepSeek will definitely promote the enhancement of robot capabilities.

However, it cannot be denied that DeepSeek is relatively weak in handling multimodal capabilities, as it focuses more on text. Robots require various perceptual abilities, including voice, images, and videos, and AI's assistance to robots is also reflected in these areas.

Humanoid Robots are Transitioning from Concept to Mass Production Stage

Host: The robot field is gradually heating up. What are the main reasons driving the recent rise in the robot sector?

Zhang Yinxian: In the past three months, the robot sector has performed strongly, mainly because the industry is gradually transitioning from the conceptual stage to the mass production stage, meaning the process from 0 to 1 is being realized, which has driven the continuous rise of the robot sector.

Industry giants like Tesla and Huawei continue to lead industry development, bringing strong technical resources and industrial experience to the humanoid robot field.

By 2026, relevant companies will begin formal sales to the public. Many domestic humanoid robot companies have already started small-scale production and delivery.

I just researched two local related companies in Shenzhen this morning and at noon, and their shipment guidance is quite optimistic, with each company potentially exceeding a thousand units this year.

Some investors are curious about who these robots are sold to. Customers include universities and research institutes for secondary development, AI companies and internet platform companies for technology research and development, as well as automobile manufacturers for production assistance, etc For example, the application scenarios of quadruped robotic dogs in automotive companies include repetitive tasks such as transporting and moving boxes, which demonstrate the powerful capabilities of robots. The quadruped robotic dog showcased earlier this year performed exceptionally well in descending slopes and executing circular movements. In the future, the performance of biped robots will also continue to improve.

Finally, the emphasis on humanoid robots in domestic policies is also continuously increasing. Cities like Beijing and Shanghai have established international robot centers, while provinces such as Guangdong, Zhejiang, and Shandong are actively promoting the development of related industries. With the Two Sessions approaching, the humanoid robot sector may receive more policy support.

Domestic and International Advantages in Humanoid Robots Vary

Host: The field of humanoid robots has become a focal point in the global tech community. Are there different approaches and strategies in the layout of humanoid robots between domestic and international players? Will these differences impact the future of humanoid robots?

Zhang Yinxian: There are indeed differences in the development of humanoid robots between domestic and international markets. Overseas, for example, the video of the mobile phone receiving a tennis ball showcased by Optimus in 2024, as well as this year's video demonstrating the ability to descend slopes using body perception, indicate a rapid pace of technological iteration. For instance, Figure 02 is already performing transportation and assembly tasks at BMW factories and is undergoing continuous testing and iteration.

Domestic automotive companies are also exploring application scenarios for humanoid robots, such as the transportation of components on the final assembly line, which involves repetitive tasks.

Domestic manufacturing accounts for over one-third of the global total, with a significant demand for robots to replace human labor, facilitating the exploration of robotic application scenarios. For example, in automotive companies, humanoid robots can replace workers in repetitive tasks like screw assembly, leading to higher efficiency.

The differences in the development of humanoid robots between domestic and international markets are quite evident. Overseas, humanoid robot technology is leading, while domestically, there are advantages in hardware manufacturing and reducing costs through large-scale production. The vast demand scenarios in domestic manufacturing can quickly drive the application of robots.

AI Software, Algorithms, and Hardware Have More Room for Growth

Host: What challenges might humanoid robots face in transitioning to mass production?

Zhang Yinxian: The robotics industry is still in a growth phase, and there are some bottlenecks in both AI software algorithms and hardware.

Currently, robots are not yet intelligent or humanized enough, and there is a certain gap between reality and our expectations, but the pace of technological advancement is rapid. In the future, both software and hardware will continue to improve.

Host: In terms of investment, will the investment logic in the advanced manufacturing sector of A-shares for robots be similar to that of semiconductor chips? Should we look for overseas mapping targets to identify investment opportunities in robotics?

Zhang Mengxian: Overseas giants do have advantages in the field of humanoid robots, especially in computing power and algorithms, which are worth our reference.

However, domestically, there are also advantages in hardware manufacturing and reducing costs through large-scale production.

From an investment perspective, overseas mapping targets have certain reference significance, but they cannot be completely copied. There are also some investment opportunities leading in niche industries domestically, and we should not solely rely on overseas technology to determine investment directions For example, in the case of quadruped robotic dogs, domestic technological capabilities are already strong, and we should not overlook domestic investment opportunities just because they do not exist abroad. Therefore, we need to analyze specific issues in detail and be adept at discovering investment opportunities in domestic niche industries.

This Year May Be the Year of Mass Production for Robots

Host: When discussing the development of humanoid robots, we might think of the investment history in hard tech sectors like semiconductors. In your view, does the investment in the robotics sector also have a similar trajectory? If so, what stage are we currently in?

Zhang Yinxian: The robotics industry is still in the process of going from 0 to 1. The recent rise over the past few months is mainly a transition from concept to mass production.

In terms of investment, we are currently transitioning from investing in concepts to investing in competitiveness. The trend of the humanoid robot industry has already emerged, this year may be the year of mass production for various companies.

The industry will gradually transition from the conceptual phase to the competitive phase, but currently, everyone is working together to expand the market. In the second half of this year or starting next year, the competitive landscape may gradually become apparent.

We are not yet at the stage of seeing the performance of robotics companies being realized; right now, the focus is on whether companies can enter the supply chain and start supporting it. We may start to see some revenue in 2025 or 2026, but it is still early for performance, as a lot of capacity and R&D will be invested initially, which may bring some fluctuations to performance. This is something that growth investment must accept, so I am not particularly worried.

AI Can Enhance Efficiency but Cannot Replace Human Creativity and Experience

Host: The combination of humans and machines is seen as a technological innovation and a reconstruction of human lifestyles and work patterns. When it comes to the commercialization of humanoid robots, many people worry about whether humans will face the challenge of being replaced by robots. What is your view on this, Mr. Zhang?

Zhang Yinxian: This is a question that everyone is very concerned about. Despite continuous technological advancements, robots and AI find it difficult to fully understand human emotions, family backgrounds, and personal experiences, especially in creative work where robots struggle to replace humans.

Although AI performs excellently in areas like film rendering, art design, and document formatting, these tasks still require human discernment and further research.

Overall, AI can enhance our efficiency but cannot replace human creativity and experience. For example, in the investment field, no matter how good the investment software is, it cannot replace the insights and experience of a fund manager.

Robotics is the Largest Growth Sector for the Next Several Years or Even a Decade

Host: Many investors have developed a deeper interest in the robotics sector. The Ping An Advanced Manufacturing Mixed Fund managed by you was established on October 24, 2023, and has always focused on investments in the robotics sector. Could you briefly introduce the main investment logic of this fund?

Zhang Yinxian: The Ping An Advanced Manufacturing Fund mainly focuses on the robotics field, because in the next few years or even the next decade, robotics may be the largest growth sector.

From automobiles to households, and even to Mars, robots have a wide range of applications, and the market space is enormous, potentially reaching tens of trillions. The investment logic of funds is, on one hand, certainty, choosing companies that are likely to enter the supply chain; on the other hand, looking for companies with good fundamentals in their main business that can achieve a breakthrough from 0 to 1 in the robotics field, as these companies may have the opportunity for a Davis double hit.

When selecting stocks for investment, I will choose companies with higher certainty, such as those that can enter the supply chain. At the same time, I will also pay attention to companies with good fundamentals in their main business and those that have technological synergy and expansion opportunities in the robotics field. These companies may achieve breakthroughs in new infrastructure areas and gain greater development space.

Host: So these companies have a main business while actively expanding their robotics-related business, with a certain degree of technological synergy between the main and secondary businesses.

Zhang Yinxian: Yes, in this case, the success rate of companies entering the robotics field will be higher.

Host: In 2025, the technology sector will bloom in multiple areas. Besides the robotics sector, low-altitude economy and smart wearable devices are also very popular. We would like to ask Mr. Zhang for his investment views on the low-altitude economy and smart wearable devices, and whether these targets will be included in the investment scope?

Zhang Yinxian: Smart wearable devices, as edge devices, will definitely benefit from the advancement of AI technology and will find more and more application scenarios. For example, AR glasses, which will start to gain attention in 2024, are expected to achieve a breakthrough from 0 to 1, which is a very promising investment direction.

I will research these areas, and if there are suitable opportunities, I will also make a small allocation.

The overall trend of robotics is upward, with significant short-term volatility, suitable for long-term regular investment

Host: Could you please provide some advice to investors focusing on the robotics sector based on the current market situation?

Zhang Yinxian: Both smart wearable devices and the robotics field are in the development process from 0 to 1, and once a breakthrough occurs, the market space is enormous.

For example, the robotics field could be a trillion-dollar market. The overall trend is upward, but short-term volatility may be significant due to potential bottlenecks in software and hardware technology that could affect progress.

My suggestion is that investors can adopt a long-term regular investment approach based on their trading habits and risk preferences. When there is a significant short-term pullback, they can increase their investment to find an investment method that suits them.

Source: Investment Workbook Pro Author: Wang Li

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