According to Zhihui Finance APP, Huaxin Securities released a Research Report stating that the prospects for embodied AI are vast. As various robot manufacturers enhance their development of embodied AI, the iteration of embodied AI technology is expected to accelerate significantly, greatly improving its applicability. On the application side, embodied AI is maturing in the 2B manufacturing assembly stage the earliest, and is most commonly used in 2C scenarios. Currently, several major manufacturers, such as Ideal and BYD, are intensifying their research in embodied AI. By 2030, a market scale of 10 billion US dollars is expected, maintaining a bullish outlook on the automotive industry and maintaining a "recommended" rating.

The main views of Huaxin Securities are as follows:

On December 26, GAC officially released its third-generation embodied AI humanoid robot.

GoMate. GoMate features an industry-first variable wheeled foot mobile structure, combining both four-wheeled and two-wheeled modes, allowing it to flexibly switch between different application scenarios, providing strong environmental adaptability and terrain-crossing skills. GoMate can reproduce real-time situational awareness based on remote control and data transmission technology, capturing changes in the surrounding environment; multimodal AI perception technology enables it to possess intelligent functions such as autonomous movement, end tracking, and language command recognition.

On December 25, during the Ideal AI Talk event, the CEO of Ideal stated that Ideal Auto invests 10 billion yuan annually in R&D, with half focused on AI. Ideal plans to deploy humanoid robots after achieving L4 autonomous driving.

On December 13, the "BYD Recruitment" WeChat public account released information about the specialized recruitment for the 25th embodied AI research team.

Job vacancies include senior algorithm engineers, senior structural engineers, senior simulation engineers, etc., with research directions covering humanoid robots, biped robots, and various other dimensions. The BYD embodied intelligence research team is deeply exploring the demand for scale applications within the company to develop customized robots and systems, continuously enhancing robots' perception and decision-making capabilities and promoting the accelerated application of embodied intelligence in the industrial field. The team has already developed products including process robots, intelligent collaborative robots, intelligent mobile robots, and humanoid robots.

BYD actively collaborates with external companies, and the domestic humanoid robot enterprise "UBTech" received investment from BYD during its early establishment. In October of this year, the new generation industrial humanoid robot Walker S1 launched by UBTech entered training in automotive factories, including BYD.

The prospects for embodied intelligence are broad, with the market size expected to reach 10 billion dollars by 2030.

According to Virtue data, the embodied intelligence market space was approximately 3.5 billion dollars in 2023, and by 2030, it is expected to reach 9.4 billion dollars, with a CAGR of 15.2%. In terms of application, embodied intelligence matures earliest in the 2B manufacturing assembly sector and is most common in 2C scenarios. Huawei predicts that by 2030, a large number of general-purpose service robots and general purpose household robots will emerge, with shipments of general intelligent robots incorporating embodied intelligence technology reaching 30-50 million units, and the market space for embodied intelligence in humanoid household applications will be the largest.

Investment Suggestions

The prospects for embodied intelligence are broad, and as various manufacturers and robot companies increase their investment in embodied intelligence research and development, the iteration of embodied intelligence technology is expected to accelerate, significantly enhancing its applicability. The screw rod is the most outstanding segment track in the embodied intelligence industry chain, with the marginal changes in dexterous hands being the most evident.

Recommendations for investment symbols

The institution remains bullish on the auto industry, maintaining a "recommend" rating, with recommended symbols including,

(1) Complete Vehicles: It is recommended to pay attention to Chongqing Sokon Industry Group Stock (601127.SH) and Anhui Jianghuai Automobile Group Corp.,Ltd. (600418.SH), which have deep cooperation with Huawei;

(2) Auto Parts: With the reshaping of the downstream landscape and technological changes coupled with the export of parts, domestic components are ushering in a golden period of development. Focus on growth sectors:

① Lightweight: Integrated die-casting is expected to reach a penetration point in Q4 2023. Pay attention to Wencan Group (603348.SH), Meilixin (301307.SZ), IKD Co., Ltd. (600933.SH), Rongtai Group (605133.SH), and Nanjing Chervon Auto Precision Technology (603982.SH);

② Interior and Exterior Trims: Jiangsu Xinquan Automotive Trim (603179.SH), Shanghai Daimay Automotive Interior (603730.SH), Jiangnan Mould & Plastic Technology (000700.SZ);

③ Smart Automobile: The concentrated implementation of NOA in urban areas is making intelligence a core competitive factor for vehicle manufacturers. Focus on China Automotive Engineering Research Institute (601965.SH), China Automotive Group (301215), Foryou Corporation (002906.SZ), Bethel Automotive Safety Systems (603596.SH), and Shanghai Baolong Automotive Corporation (603197.SH);

④ Humanoid Robots: It is recommended to pay attention to the 'Auto + Robot' dual-driving symbols, Ningbo Shuanglin Auto Parts (300100.SZ), Zhejiang Shuanghuan Driveline (002472.SZ), Jiangsu Pacific Precision Forging (300258.SZ), and Wuxi Best Precision Machinery (300580.SZ).

⑤ BSE: It is recommended to pay attention to Junchuang Technology (833533.BJ), Kait Company (832978.BJ), and Yishi Precision (836221.BJ).

Risk Warning: The automotive industry production and demand may be below expectations; advancements in intelligence may not meet expectations; the rise of independent brands may be less than expected; geopolitical conflicts and other policy risks may hinder automotive exports; it is recommended to pay attention to companies whose performance fails to meet expectations.