Why can automotive component capabilities be applied to robotics?

  • The drive to make humanoid robots lighter is encouraging the use of injection-molded engineering plastics in structural components and some transmission components, overlapping with Fusai Technology’s existing processes. The company has end-to-end capabilities spanning product design, mold development, molding and assembly; in-house mold production helps shorten prototyping cycles.
  • The company already uses heat-resistant, wear-resistant and electrically insulating PEEK material at scale, which can replace some metal structural components. Localizing and modifying the material, together with optimizing formulations and molding processes, is key to further cost reductions.
  • The robotics business remains at an early stage. Zheshang Securities believes moving pipeline part numbers into mass production will be the main source of future revenue upside.

What foundation do overseas capacity and existing projects provide?

  • North American customers require some critical components to be produced in Mexico or Southeast Asia. The company already has three factories in Mexico and is building a base in Thailand, allowing it to reuse its automotive business experience in local production, quality systems and customer collaboration.
  • In the first half of 2026, revenue from the Mexico base was 276 million yuan, accounting for 33.49% of the company’s total revenue and making it the largest source of revenue.
  • As of 31 May 2026, projects already in mass production were expected to generate 3.865 billion yuan in revenue over 2026–2028. Projects starting mass production in 2026 or later were expected to generate 2.67 billion yuan in the three years after mass production begins. The two figures total 6.535 billion yuan, approximately 3.8 times 2025 revenue, but cover different revenue periods.
  • The electronic insert business has expanded from new-energy vehicle electric drives and onboard power supplies into power semiconductor packaging, with customers including Inovance Technology. Zheshang Securities believes this could reduce the company’s sensitivity to the vehicle production cycle.

What conditions are needed for robotics to scale, and what are the earnings forecasts?

  • Zheshang Securities modeled a scenario for 2029: its base case assumes customer production of 1.2 million units, a company supply share of 50% and value per unit of 6000 yuan, implying robotics revenue of 3.6 billion yuan. At a net margin of 15%, net profit would be 540 million yuan.
  • The conservative case in the same model assumes customer production of 800 thousand units, a share of 45% and value per unit of 5500 yuan, implying revenue of 1.98 billion yuan and net profit of 260 million yuan. This shows that the business’s scale is sensitive to customer production volumes and supply arrangements.
  • Zheshang Securities forecasts net profit attributable to the parent company of 167 million, 253 million and 366 million yuan respectively for 2026–2028, up 25.87%, 51.38% and 44.66% year on year. The corresponding price-to-earnings ratios are 104.9, 69.3 and 47.9 times respectively.