Haitong: Siasun Robot & Automation accelerates development and focuses on investing opportunities in UHMWPE, the main tendon material for agile hands.

Haitong released a research report stating that the dexterous hand is one of the key components of the humanoid Siasun Robot&Automation, with main transmission methods including tendon rope transmission, linkage transmission, and gear worm transmission. Among them, tendon rope transmission is the mainstream transmission method of Siasun Robot&Automation's dexterous hand, and UHMWPE fiber is the main tendon rope material used. The demand for UHMWPE powder has increased at a compound annual growth rate of approximately 10% in the past few years, and is expected to accelerate due to the development of humanoid Siasun Robot&Automation. Key points from Haitong include: - Tendon rope transmission is the mainstream transmission method for Siasun Robot&Automation's dexterous hand. - UHMWPE fiber is the main tendon rope material for Siasun Robot&Automation. Tendon rope is a thin rope or fiber rope used to connect and fix keyboard keys, typically made from high-strength materials such as UHMWPE fiber or steel wire rope to ensure stability and durability during long-term use. The overall tendon rope materials are divided into stainless steel and high polymer fiber categories, with high polymer fibers being more widely used. Dyneema and Spectra fibers are the mainstream fibers in high polymer fibers, produced by DSM and Honeywell, respectively. In terms of UHMWPE powder supply, there has been a significant increase in new production capacity in China in recent years. UHMWPE powder is the main raw material for UHMWPE fiber. According to data from a chemical industry publication, the global UHMWPE powder capacity is estimated to be around 414,000 tons per year by 2023, with Asia accounting for 57.9% of the global capacity, followed by the Americas and Europe. In recent years, Chinese companies have made technological breakthroughs in UHMWPE powder production, with a total production capacity of 211,000 tons per year as of 2023. The industry is expected to see an additional capacity focus in China in the coming years, with an estimated increase of 463,000 tons per year. The demand for UHMWPE powder has grown at a compound annual rate of around 10% in recent years, and is expected to benefit from the increase in demand for tendon ropes. Global UHMWPE demand has been growing rapidly, with China consuming nearly half of the UHMWPE for producing lithium battery separators. UHMWPE fibers have a high production difficulty and a tight supply-demand situation. Due to the large molecular weight and entanglement between molecules, processing UHMWPE fibers has been challenging. UHMWPE fiber, as a third-generation high-performance fiber, is widely used in military protection, marine fisheries, civilian safety, and industrial construction due to its high strength, low density, and excellent chemical corrosion resistance. Overall, the UHMWPE fiber market is expected to continue growing with increasing demand in various sectors. The industry is forecasted to maintain high capacity utilization rates even with planned capacity expansions. This suggests potential for further investment opportunities in UHMWPE fiber.The use of human-shaped Siasun Robot & Automation tendons is widespread, benefiting from the promotion of human-shaped Siasun Robot & Automation and demand is expected to grow quickly. It is recommended to pay attention to UHMWPE fiber companies such as Beijing Tongyizhong New Material Technology Corporation (688722.SH), Shandong Nanshan Fashion Sci-Tech (300918.SZ), as well as UHMWPE companies such as Levima Advanced Materials Corporation (003022.SZ), Jiangsu Eastern Shenghong (000301.SZ), and China Petroleum & Chemical Corporation (600028.SH).Risk Warning Significant price fluctuations in the product; Increase in raw material prices, etc.