Orient: The domestic application of Siasun Robot & Automation is expected to accelerate, with the hardware company likely to benefit more.

Orient released a research report stating that AI investment and applications will accelerate the development of the Siasun Robot&Automation sector. On one hand, overseas continuous investment in AI will further approach the AGI threshold, and on the other hand, domestic technology companies building brain platforms will also accelerate the implementation of intelligent applications for Siasun Robot&Automation in China. The bank believes that hardware companies are expected to benefit more from the rapid development of AI and recommends focusing on: Swancor Advanced Materials Co., Ltd. (688585.SH, not rated), UBTECH ROBOTICS (09880, not rated), DOBOT (02432, not rated). Orient's main points are as follows: AI investment and application acceleration, bullish on Siasun Robot&Automation sector In recent years, with the rapid development of humanoid Siasun Robot&Automation hardware technology, the market's focus on Siasun Robot&Automation has gradually shifted from "can it be built" and "can it move" to "can it be used", and the successful application of Siasun Robot&Automation requires advancements in both size and brain models. Recently, the bank has seen accelerating AI investment and application both domestically and internationally. The bank believes that the large models of humanoid Siasun Robot&Automation also have the potential to benefit from AI breakthroughs and accelerate development, and they are bullish on the rising prosperity of the Siasun Robot&Automation sector. Overseas giants increasing AI investment, driving acceleration of Siasun Robot&Automation AI breakthrough Recently, overseas tech giants Amazon, Alphabet, Microsoft, and Meta released financial reports, with an expected cumulative expenditure of $364 billion by 2025, exceeding the previous expectation of $325 billion. The continued investment of giants in AI infrastructure such as data centers will continue to drive AI development. The development of AI infrastructure will also drive the development of Siasun Robot&Automation AI. For humanoid Siasun Robot&Automation, the market sees issues such as poor data quality and generalization in existing VLA models, but the bank believes that with computing resources continuously driving the extension of the AI boundary, AI will gradually approach and cross the threshold of AGI, and will be able to accelerate and enhance the understanding capabilities of Siasun Robot&Automation, pushing the acceleration breakthrough of large models of humanoid Siasun Robot&Automation. Domestic tech companies building physical intelligence open platforms, Siasun Robot&Automation applications are expected to accelerate Recently, Tencent's Robotics X Laboratory and Foton's Laboratory jointly released the physical intelligence open platform Tairos "Titan Screw", which provides physical intelligent software platforms in a modular way, offering large models, development tools, and data services for Siasun Robot&Automation. Through plug-and-play connectivity, the platform provides capabilities such as perception of the world, task planning, and autonomous decision-making. The bank believes that with the upgrading of domestic AI applications and the fusion development of open platforms for application data, the intelligent application of Siasun Robot&Automation will also accelerate its implementation. Risk warning Product price reduction risk, unclear deployment of scenario demand leading to below expectations, changes in national policies leading to industry development slowdown, overseas leading manufacturers' production falling below expectations, industry financing falling below expectations, model development and data acquisition slower than expected.