汇丰-中国自动化：人工智能将如何改变市场范式？-China Automation：How will AI change the market paradigm-20260701

HSBCGlobalInvestmentResearch

1July2026EquityResearchReport

Equities

Automation

ChinaAutomation

HowwillAIchangethemarketparadigm?

China

uWeseefastadoptionofAIintheindustrialautomationspacegivenitsdecentvalueaddinindustrialautomationsolutions

uWeseefirstmoveradvantageforindustrialAIdevelopersgiventhehighswitchingcostforcustomers

uPreferInovance(Buy)andZhaowei-H(initiateatBuy)

WeseefastadoptionofAIintheindustrialautomationspace,givendecent

valueaddforitscustomers.Initially,AIadoptioncouldbefasterinprocessindustriesthanindiscreteindustriesgivenmorequalitydataavailablefortheformer,inour

view.ButthedevelopmentoflargeAImodelscouldeventuallytranslateintodemandformorerobotsindiscreteindustries,asAI-empoweredrobotscouldimprovework

efficienciesinareaslikeassembly,anomalydetection,andlogistics.Weseefirst

moveradvantageforindustrialAIdevelopersasindustrialAIsolutionsinvolvedeepcouplingoftechnology,data,andbusinessoperationsatthecustomerend,leadingtohighswitchingcostforcustomers.

InovanceandZhaowei-Hareourpreferredpicks.WebelieveInovance(maintainBuy,TPunchangedatRMB96.00)iswellpositionedtobenefitfromtheriseof

industrialAI,leveragingonitsAIsoftwareplatformandhumanoidrobotproduct

portfolio.AIshouldalsoacceleratethetrainingofdexteroushand,akeypartof

humanoidrobots.ThisshouldbenefitdexteroushandsupplierZhaowei,webelieve.

Changesinthisreport:ForSupcon(maintainHold,raiseTPtoRMB117from

RMB58),wecutour2026-27eearningsby17-42%toreflectthecapexcontractioninChina’sprocessautomationmarketgiventighterenergyefficiencystandards.We

initiateZhaowei-HatBuywithaTPofHKD105,andmaintainourHoldonZhaowei-A,cuttingourTPtoRMB90(fromRMB114)whilewecutour2026-27eearningsby6-

11%toreflectlower-than-expectedrevenuecontributionfromtheconsumer&healthcaresegment.Seevaluationsandrisksonpage2.

Keychangestoratingsandestimates

CoreyChan*(Reg.No.S1700518100001)

Head,A-shareIndustrials&RenewablesResearch

HSBCQianhaiSecuritiesLimited

corey.chan@

+862150662001

EchoZhang*(Reg.No.S1700525050001)

Analyst,A-shareIndustrials&RenewablesResearch

HSBCQianhaiSecuritiesLimited

echo.x.zhang@

+861057952314

AmyHu*(Reg.No.S1700520090001)

Analyst,A-shareIndustrials&RenewablesResearch

HSBCQianhaiSecuritiesLimited

ruo.lin.hu@

+8675588983408

DunWang*,CFA,CPA(Reg.No.S1700519060002)

Analyst,A-shareIndustrials&RenewablesResearch

HSBCQianhaiSecuritiesLimited

dun.wang@

+862150662027

GaryYao*(Reg.No.S1700525080001)

Analyst,A-shareIndustrials&RenewablesResearch

HSBCQianhaiSecuritiesLimited

gary.x.d.yao@

+862150662078

*Employedbyanon-USaffiliateofHSBCSecurities(USA)Inc,andisnotregistered/qualifiedpursuanttoFINRAregulations

Company

TickerCurrency

Currentprice

TP

____

Rating

Upside/downside

2026eEPS

____

____

2027eEPS

OldNew

OldNew

____

2028eEPSOld

New

Old

New

Old

New

ZhejiangSupcon

688777CH

RMB

119.05

58.00

117

Hold

Hold

-1.7%

1.15

0.76

1.32

1.24

1.51

1.96

ZhaoweiA

003021CH

RMB

81.55

114.00

90.00

Hold

Hold

10.4%

1.32

1.06

1.72

1.45

NA

1.94

ZhaoweiH

2692HK

HKD

44.22

NA

105.00

NA

Buy

137.4%

NA

1.06

NA

1.45

NA

1.94

EstunA

002747CH

RMB

34.67

22.70

33.90

Hold

Hold

-2.2%

0.22

0.22

0.31

0.31

0.45

0.45

EstunH

2715HK

HKD

17.48

13.20

19.80

Hold

Hold

13.3%

0.22

0.22

0.31

0.31

0.45

0.45

Inovance

300124CH

RMB

63.28

96.00

96.00

Buy

Buy

51.7%

2.06

2.06

2.54

2.54

2.99

2.99

Pricedat26June2026

Source:Wind,HSBCQianhaiSecuritiesestimates

Nocountryforbears

The24theditionoftheEMSentimentSurvey

Clicktoview

Disclosures&Disclaimer

ThisreportmustbereadwiththedisclosuresandtheanalystcertificationsintheDisclosureappendix,andwiththeDisclaimer,whichformspartofit.

Issuerofreport:HSBCQianhaiSecuritiesLimited

ViewHSBCQianhaiSecuritiesat:

2

HSBC

Qianhai

Equities●Automation

https://www

1July2026

Valuationandrisks

ValuationRisks

Zhejiang

Supcon

688777CH

Currentprice:

RMB119.05

Targetprice:

RMB117.00

Up/downside:

WebaseourtargetpriceofRMB117.00(previouslyRMB58.00)ona

DCFmodel.WeuseaWACCof8.4%(unchanged).Weexpect

operatingcashflow(beforechangesinworkingcapital)toexpandat

aCAGRof23%in2025-2037e(previously12%in2025-2037e),

reflectingsolidgrowthinthelongterm.WeexpectcapexofRMB107-

109mperannumin2026-28e(previouslyRMB507m,RMB107m,

Keyupsiderisks:

1.stronger-than-expectedordersonacceleratedlocalisationtrendinprocessindustriesinChina;

2.potentialM&Athatisvalue-accretive;

3.higher-than-expectedmarginonafaster-than-expectedtransitiontoSaaS;

Hold

-1.7%

andRMB109mperannumin2025-27e).Thereafter,weassume

steadycapexofaroundRMB109-118mperannumin2028-37e

(unchanged),reflectingsteadyinvestmentinmaintenance.Wealsoseeaterminalgrowthrateof2.5%(unchanged).Basedonour

estimatechanges,ournewtargetpriceofRMB117.00impliesc2%

downsidefromthecurrentsharepriceandwemaintainaHoldrating.Weexpectweakprocessautomationdemandin2026.

4.stronger-than-expectedindustrialAIsoftwareorderintake.

Keydownsiderisks

1.Weaker-than-expectedcapexcycleinprocessindustries

2.Higher-than-expectedinventorylevelsonafaster-than-expectedincreaseinwarehousingactivity

3.Lower-than-expectedmarginonrisingcompetition

CoreyChan*(Reg.No.S1700518100001)|

corey.chan@|

+862150662001

Zhaowei

003021CH2692HK

Currentprice:

A:RMB81.55

H:HKD44.22

Targetprice:

A:RMB90.00

H:HKD105.00

Up/downside:

A:+10.4%

H:+137.4%

WebaseourA-sharetargetpriceofRMB90.00(previously

RMB114.00)onaDCFmodel.WeuseaWACCof10.1%(previously10.0%).WeexpectOperatingcashflow(beforechangesinworkingcapital)togrowata19%CAGRin2025-2037e(previously22%

CAGRin2024-2037e).WeexpectcapexofRMB150m,RMB100mandRMB100mperannumin2026e-28erespectively(previously

RMB400m,RMB150mandRMB100mperannumin2025e-27e).

Thereafter,weassumeasteadycapexofaroundRMB10-13mperannumin2029-37e(previouslyRMB10-13mperannumin2028-

37e).Terminalgrowthrateof2.5%(unchanged).WearriveatH-

sharetargetpriceofHKD105.00byapplyinganend-2026eRMB-HKDFXrateof1.17.OurA-sharetargetpriceimpliesc10%upsideandwemaintainourHoldratingonconcernsoverautocomponentdemandin2026.OurH-shareTPimpliesc137%upside,andsoweinitiatecoverageofZhaoweiHatBuy.

KeyupsiderisksforAshare:

1.Stronger-than-expecteddemandfordexteroushand;

2.Faster-than-expectedintelligentautomotiveupgradetrend;

3.Stronger-than-expectedordergrowthinconsumerandhealthcare;

4.Makingin-roadsinoverseasmarkets.

KeydownsiderisksforA/Hshare:

1.Slower-than-expectedapplicationofdexteroushand;

2.Weaker-than-expectedintelligentautomotivedemand;

3.Marketsharelossinconsumer&healthcaremarkets;

4.Weaker-than-expectedmarginsonkeencompetition.

A:Hold

H:InitiateatBuy

CoreyChan*(Reg.No.S1700518100001)|

corey.chan@|

+862150662001

Inovance

Technology300124CH

Currentprice:

RMB63.28

Targetprice:

RMB96.00

Upside:

WebaseourtargetpriceofRMB96.00(unchanged)onaDCF

valuationmodel.WeuseaWACCof8.4%(unchanged).Weassume

anoperatingcashflow(beforechangesinworkingcapital)CAGRof

11%in2025-37e(unchanged),andcapexofcRMB1.0bnperannum

in2026-28e(unchanged).Wealsoexpectstablecapexof

RMB1,002-1,096mperannumin2028-37e(unchanged)andusea

Keydownsiderisks:

1.Weaker-than-expectedautomation,elevatorandNEVdemandinChina

2.Intensecompetitioncouldhurtmargins

3.Riskofequitydilutionfrompotentialfundraisingactivities

Buy

+52%

terminalgrowthrateof2.5%(unchanged).OurDCF-basedtarget

priceofRMB96.00implies52%upsidefromthecurrentshareprice.

Hence,wemaintainBuyonthestock.

CoreyChan*(Reg.No.S1700518100001)|

corey.chan@|

+862150662001

Estun

002747CH2715HK

Currentprice:

A:RMB34.67

H:HKD17.48

Targetprice:

A:RMB33.90

H:HKD19.80

Up/downside:

A:-2%

H:+13%

WebaseourA-sharetargetpriceofRMB33.90(previously

RMB22.70)onaDCFmodel.Byapplyinga50%H/Adiscount

(unchanged)andend-2026eRMB-HKDFXrateof1.16(previously1.16)toourA-shareTP,wearriveatourH-shareTPofHKD19.80(fromHKD13.20).ForourDCFassumptions,weuseaWACCof

6.1%(unchanged).Weexpectoperatingcashflow(beforechangesintheworkingcapital)toexpandataCAGRof15%(previously

12%)in2025-37e.WeexpectcapexofcRMB300mperannumin2026-28e(unchanged).Thereafter,weassumeasteadycapexofRMB302-314mperannumin2029-37e(unchanged).Ourterminalgrowthrateis2.5%(unchanged).OurA/HTPimplies-2%/+13%upsidefromthecurrentshareprice.WemaintainHoldontheA-share.WemaintainourHoldratingsonEstun-Honfierce

competitionofindustrialrobotmarket.

Keyupsiderisks:

1.Stronger-than-expectedrecoveryinOEM-basedindustries;

2.Stronger-than-expectedoverseasdemand;

3.Stronger-than-expectedpenetrationinnewindustries.Keydownsiderisks

1.Weaker-than-expecteddemandforindustrialrobotsinChina;

2.Intensecompetitionthatcouldhurtmargins;

3.Weaker-than-expecteddemandforCLOOSEurope.

A:

A:Hold

H:Hold

CoreyChan*(Reg.No.S1700518100001)|

corey.chan@|

+862150662001

Pricedat26June2026;*Employedbyanon-USaffiliateofHSBCSecurities(USA)Inc,andisnotregistered/qualifiedpursuanttoFINRAregulationsSource:Wind,HSBCQianhaiSecuritiesestimates

Exhibit1.Peercomparison:Globalautomation

TargetPrice

ClosingPrice

MarketEarnings

Cap3MADTVPE(x)PB(x)ROEDYEV/EBITDA(x)CAGR

USDbnUSDm2025e2026e2025e2026e2025e2026e2025e2026e2025e2026e2025-28e

CompanynameStockCodeCurRating

AutomationSystemIntegrator

Siemens**

SIEGREquity

EUR

-

-

267.30

238

367

25.7

22.2

3.3

3.1

13%

15%

2.0%

2.1%

17.4

15.4

8%

Mitsubishi

6503JPEquity

JPY

NR

NA

5858.00

77

248

24.5

21.9

2.6

2.4

11%

11%

1.1%

1.3%

14.8

13.7

20%

Rockwell**

ROKUSEquity

USD

-

-

476.82

53

361

38.2

34.0

14.8

12.9

39%

39%

1.1%

1.2%

26.6

24.2

17%

Omron

6645JPEquity

JPY

NR

NA

5612.00

7

54

28.4

20.2

1.4

1.4

5%

6%

1.9%

2.0%

12.8

11.2

27%

Schneider**

SUFPEquity

EUR

-

-

276.05

181

317

29.0

24.8

6.0

5.3

21%

22%

1.6%

1.8%

18.8

16.6

15%

Yaskawa

6506JPEquity

JPY

NR

NA

6810.00

11

167

37.5

32.2

3.7

3.5

10%

11%

1%

1%

21.9

19.1

22%

Inovance*

300124CHEquity

CNY

Buy

96

63.28

25

385

30.7

25

4.3

3.8

15%

16%

1%

1%

23.8

19.1

17%

Supcon*

688777CHEquity

CNY

Hold

117

119.05

14

284

155.7

95.8

9.1

8.5

6%

9%

0%

1%

125.6

78.3

52%

Emerson**

EMRUSEquity

USD

-

-

82.49

80

410

22.0

19.9

3.8

3.7

15%

16%

2%

2%

16.9

15.7

10%

Honeywell**

HONUSEquity

USD

-

-

243.41

147

1,019

10.6

10.9

4.4

3.8

36%

33%

4%

4%

9.7

8.9

4%

Reducer

Nabtesco

6268JPEquity

JPY

NR

NA

5102.00

4

36

30.2

25.3

2.2

2.1

7%

8%

2%

2%

12.8

11.5

21%

Sumitomo

8053JPEquity

JPY

NR

NA

1550.30

46

155

9.2

8.8

1.5

1.0

13%

13%

3%

3%

15.2

14.4

19%

HarmonicDriveSystems

6324JPEquity

JPY

NR

NA

7100.00

4

63

133.9

86.1

9.0

8.4

7%

10%

0%

0%

50.3

37.8

89%

LeaderHarmoniousDriveSystems

688017CHEquity

CNY

NR

NA

369.46

10

447

407.7

284.8

20.8

19.7

5%

7%

0%

0%

303.9

207.7

49%

ZhongdaLeaderIntelligent

002896CHEquity

CNY

NR

NA

70.30

2

123

144.1

123.6

11.8

11.2

8%

10%

0%

0%

63.9

57.4

13%

IndustrialRobot

Fanuc**

6954JPEquity

JPY

-

-

7026.00

43

274

35.2

32.3

3.6

3.5

10%

11%

2%

2%

23.6

22.2

12%

ABB**

ABBNSWEquity

CHF

-

-

84.52

22

241

32.3

31.2

10.0

8.6

34%

29%

1%

1%

24.3

21.9

15%

Estun-A*

002747CHEquity

CNY

Hold

33.9

34.67

5

198

154.2

112.1

9.6

8.9

8%

8%

0%

0%

51.5

43.5

113%

Estun-H*

2715HKEquity

HKD

Hold

19.8

17.48

4

18

67.4

49

4.2

3.9

8%

8%

0%

0%

51.5

43.5

113%

Siasun

300024CHEquity

CNY

NR

NA

15.22

4

101

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Relay

TEConnectivity

TELUSEquity

USD

NR

NA

197.74

58

544

17.9

16.0

4.3

3.8

25%

27%

1.5%

1.6%

12.1

11.0

18%

HongfaTechnology*

600885CHEquity

CNY

Buy

42.60

32.89

7

104

25.6

20.7

3.8

3.2

15%

17%

1.2%

1.4%

13.4

11.4

13%

Panasonic

6752JPEquity

JPY

NR

NA

4540.00

69

227

24.2

19.7

2.0

1.9

9%

10%

1.2%

1.5%

12.4

10.8

40%

Instrument

Yokogawa

6841JPEquity

JPY

NR

NA

5587.00946

22.7

19.9

2.6

2.5

12%

13%

1.6%

1.7%

11.0

10.0

11%

ChuanyiAutomation

603100CHEquity

CNY

NR

NA

16.80118

12.3

10.5

1.7

1.5

14%

15%

3.1%

4.1%

10.8

8.9

9%

GlobalAverage

63.3

47.8

5.9

5.3

14%

15%

1.3%

1.5%

39.4

30.6

30%

Note:Pricedasof26June2026.NR–NotRated.NA–NotApplicable/Available.NM–NotMeaningful.*CoveredbyHSBCQianhaiSecurities,andHSBCQianhaiSecuritiesareused.**CoveredbyHSBCGlobalInvestmentResearch;pleaseseetheHSBCGlobalInvestmentResearchwebsiteforthelatestreport.

3

Equities●Automation

1July2026

Source:Bloombergconsensus(forNotRatedstocksandHSBCGlobalResearchcoveredstocks),HSBCQianhaiSecuritiesestimates(forHSBCQianhaiSecuritiescoveredstocks)

Equities●Automation

HSBC

Qianhai

https://www

1July2026

4

Investmentsummary

AutomationcompaniesareembeddingAIintheirindustrialautomationsolutionstoimprove

workefficiencyandtoreducewaste,humanerroranddowntime.Supconisdeployingits

transformer-basedAImodel(TPT)in13downstreammarkets,whileEstunhasdevelopedthe

AIreal-timerobotprogrammingsystemIRPStoachieveautonomouswelding(source:companywebsite).InthisreportweanalysethepotentialofAIinindustrialautomationandreachthe

followingconclusions:

uIndustrialAIhasaddedvalueforcustomers.AccordingtoSupcon’s2025annualreport,thecompany’sTPTmodelcanhelpincreasefactorycomprehensiveefficiencyby1-3%.

AccordingtoEstun,IRPScanhandletheautomaticweldingofsmallbatchesandmultiplecategoriesofworkpieces,andweldingefficiencycanbeimprovedbyupto60%.

uInitially,AIadoptioncouldbefasterinprocessindustriesthanindiscreteindustriesgivenmorequalitydataavailablefortheformer,inourview.

uIndiscreteautomation,futuredemandforAIismainlyassociatedwithrobotics,inourview,asAIcanhelpacceleratetrainingofrobots.

uWebelievethefirstmoverinthemarketshouldenjoymoreadvantagesthanlatecomersasindustrialAIsolutionsinvolvedeepcouplingoftechnology,data,andbusinessoperationsatthecustomerend,leadingtohighswitchingcostforcustomers.

Stocks

Inovance(Buy)andZhaoweiH(initiateatBuy)areourpreferredpicks.Weexpectrising

penetrationofindustrialAItogeneratedemandforInovance’sAIsoftwareandhumanoidrobot

products.AIshouldalsoacceleratethetrainingofdexteroushand,whichisakeypartofhumanoidrobots.ThisshouldbenefitdexteroushandsupplierZhaowei,weexpect.WemaintainourBuy

ratingonInovanceandourTPatRMB96.00.WeinitiatecoverageofZhaoweiHwithaBuyrating

andaTPofHKD105.00.WemaintainourHoldratingonZhaoweiA,andcutourTPtoRMB90.00(fromRMB114.00),reflectingourearningsestimaterevisions.ZhaoweiHlooksmoreattractivethanZhaoweiA,inourview,asthevaluationoftheformerisnowata54%discounttothatofthelatter.

What’sinthepriceandwhat’snot?

Inovance:Thesharepricehasdropped6%sinceend-April2026(vs.CSI300up1%duringthesameperiod),onlacklusterEVsalesinChina.Thestockistradingata31x2026ePE,belowitshistoricalaverageforwardmultipleof36x,andlooksattractive,inourview.Our2026-28

earningsestimatesare3-4%aboveconsensus,givenourmorebullishoutlookonthefactoryautomationmarketandcontributionsfromnewproductcategories.

Zhaowei:ZhaoweiA/Hsharepriceshavedropped13%/29%sinceend-April2026(vsCSI

300/HSI+1%/-13%duringthesameperiod),onlacklusterEVsalesinChina.Zhaowei-Aistradingata77x2026ePE,higherthanpeers’averagemultipleof57x.Zhaowei-Hvaluationlooksmore

attractiveata36x2026ePE.Our2025-27earningsestimatesare2-4%aboveconsensus,givenourmorebullishoutlookoncontributionsfromhealthcareanddexteroushandproducts.

Supcon:Thesharepricehasrisen54%sinceend-April2026(vs.CSI300up1%duringthe

sameperiod),drivenbythemarket’senthusiasmforthecompany’sAIsoftwareproduct.

However,ata156x2026ePE(vs.itshistoricalaverageforwardmultipleof48x),webelievetheupsidefromindustrialAIiswellpricedin.Our2025-27earningsestimatesare3-4%below

consensus,givenourmorebearishviewonthedemandoutlookfortheprocessautomationmarketin2026owingtotighteremissioncontrols.

Equities●Automation

HSBC

Qianhai

https://www

1July2026

5

Estun:EstunA/Hsharepriceshaverisen67%/41%sinceend-April2026(vsCSI300/HSI

+1%/-13%duringthesameperiod)drivenbythemarket’senthusiasmforthecompany’s

humanoidrobotassociateKuzhuo.However,weseelimitedearningscontributionfromKuzhuointheneartermgivenacompetitivehumanoidrobotmarket.Our2025-27earningsestimatesare0-2%belowconsensus,asweexpectmarginpressureonheavyR&Dexpenses.

Exhibit2.HSBCQianhaiSecuritiesestimatesversusconsensus

HSBCQianhaiestimates_ConsensusDifferenceTickerCompanyRMBm2026e2027e2028e2026e2027e2028e2026e2027e2028e

002747CH

·Supcon

Revenue·Netprofit

9,187

605

11,032

1,013

10,701

983

13,158

1,550

9,280

624

13,851

1,615

-1%

-3%

-3%

-3%

-5%

-4%

003021CH

Zhaowei

Revenue

Netprofit

2,165

283

2,776

387

3,735

520

2,123

277

2,722

372

3,557

500

2%

2%

2%

4%

5%

4%

002747CH

Estun

Revenue

Netprofit

6,043

218

7,041

299

7,939

434

5,925

218

6,903

305

7,561

438

2%

-0%

2%

-2%

5%

-1%

300124CH

Inovance

Revenue

Netprofit

52,651

5,575

59,474

6,865

66,394

8,096

51,619

5,413

58,308

6,601

63,232

7,860

2%

3%

2%

4%

5%

3%

Source:Wind,HSBCQianhaiSecuritiesestimates

HowcanAIbeusedinindustrialautomation?

AIpotential:processvsdiscrete

Initially,AIadoptioncouldbefasterinprocessindustriesthanindiscreteindustriesgivenmorequalitydataavailablefortheformer,inourview.Datainprocessindustriesaremainlytime-

seriesdata,whicharehighlystandardized.ThiscouldmakethetrainingofAImodelsfortheprocessindustrieseasierthanfordiscreteindustries,inourview.

Indiscreteindustries,futuredemandforAIismainlyassociatedwithrobotics,inourview,asAI-empoweredrobotscanenhanceworkefficienciesinareaslikeassembly,anomalydetection,

andlogistics.CurrentlythebottleneckliesinembodiedAImodeldevelopmentanddata

collection.On9June2026,MIITandSASACjointlylauncheda2026nationwideactionplantodeployhumanoidrobotsinreal-worldindustrial,service,andspecializedscenarios,targeting

thousand-unitdeploymentsandover100high-valueapplicationscenarios.

uProcessautomation:Inprocessindustries,industrialAIsoftwareiscurrentlybeingusedinR&D,processoptimization,carbonreduction,predictivemaintenance,andanomaly

detection.SupconandBaosight’sAImodelshaveprovedtheirabilitiestogenerateeconomicvaluesforcustomers.

●SupcongeneratedAIsoftwarerevenueofcRMB200min2025.Thecompany’sTPT

modelexpandeditsdownstreamapplicationfrom3industriesin2024to13industriesin2025.Accordingtothecompany,someadjustmentisneededtoapplyTPTcross-

industry.ThisleadstoTPT’sdeploymentcostbeing60%lowerthanasingleindustrysolution.Asof2025,over110companiessubscribedtotheTPTmodel.

●Baosteellaunchednearly300AIapplicationsandbuiltfivebenchmarkAIproductionlineswithitslargeAImodelforthesteelindustryin2025(Source:companywebsite).

uDiscreteautomation:Duetoadiverserangeofproductionworkflows,eachdiscrete

industryhasdifferentrequirementsfortheirAItools.Forexample,auto,semi,and

healthcareusebespokeR&Dtools,whicharecustomizedfortheirownneeds.Indiscreteindustries,evenroboticsapplicationsarespecializedbytask(e.g.,AGV,AMR,welding,

inspection,surgery).Thisimpliestherecouldbemultiplewinnersemergingfromthe

discreteautomationmarket,eachbankingontheirspecificsectorknow-how.Webelievemachinevisioncouldstandoutasageneral-purposeAItoolfordiscreteindustries.Thisisbecausevisualfoundationmodelsarebuiltonsharedarchitectures,indicatingmachine

visionplayerscantrainasinglebasemodelusingcross-industrydata,insteadofbuildinganentirelynewmodelforeachdownstreammarket.

Equities●Automation

HSBC

Qianhai

https://www

1July2026

6

●InovancehasbuiltanAIplatformiFG(InovanceFactoryGenius),providingseveral

industrialsoftwareincludingAIcoding,predictivemaintenance,andmorethan20AI

agentstoimproveworkefficiency.Thecompanyalsosuppliesframelesstorquemotors,planetaryballscrews,actuatorsandrobotarmsforhumanoidrobot.

●EstunaimstouseAItoimprovetheefficiencyofitsrobots.ThecompanylaunchedaseriesofAIintegratedproductsin2026,includingE-NoesisAI(industrialdatacloudplatform),iER.Sim(industrialsimulationsoftware)andiER.OS+RoboBasePlatform

(clientsoftwaredevelopmentplatform).

●OPThasbeenusingAItoimproveitsdefectdetectionsolutionsinelectronics,LIB,semi,andautoindustry.Thecompany’sAIrelatedrevenuehasreachedRMB87min1H25,up363%y-o-y.

●HKVisiondevelopedalargevisionAImodeltoempoweritsindustrialinspection,robotvisionsystem,andhighwayanomalydetection.

Exhibit3.AIadoptionpotentialsacrosskeyindustries

R&D/designProductionprocessEnergymanagement

Predictive

maintenance

Defect/anomaly

detection

Logistics/robot

Processautomation

Steel

Petrochemical/chemicals/metallurgy

Coal

Healthcare

Discreteautomation

Auto

Electronics

Semiconductor

Note:blankmeansnoAIrequired,halfstarmeansscenarioswithAIpotentialsbutlimitedvalue,fullstarmeansscenarioswithAIhighvalue

Source:GuidetotheIntegrationofIndustryandAI(byHuawei),HSBCQianhaiSecurities

Internationalindustrialautomationplayers:WhataretheydoinginindustrialAI?

MoresoftwareM&A:Internationalindustrialautomationplayersareactivelyexpandingtheir

softwareproductofferingsbyM&A.Siemens,Schneider,andABBhaveacquiredindustrial

simulationsanddigitaltwinscompaniestostrengthentheirAIinfrastructure.SimulationsoftwareisthefundamentalblockofindustrialAIasitcanhelpindustrialcompaniescreatehighquality

syntheticdatatotrainAImodels.

FromAIassistanttoAIagent:Currently,intheindustrialspace,AIlargemodelsaremainly

usedasanassistantis(similartoaChatGPTwithindustrialknowledge)toassisthuman

engineers.AccordingtoSiemensandEmerson,withrisingintelligenceofAIagents,AIcan

carryoutmorejobslikearealengineer,suchaswritingcodesandoptimizingproductionswithfewerhumaninteractions.Supconhaslaunchedanew“1largemodelplusNagent”strategytoimproveitsAIcapability.

7

management),Inspekto(visualinspection).

(R&Dsoftware)

Omniverse(digitaltwins)

23%inFY25

enablingAutonomousVersatileRobotics

automationsoftware),ASTIMobileRobotics

NA

embeddedintoeveryindustrialstack.

collection)

23%inFY25

Industrialplayer

AIstrategy/targets

FlagshipAI-PoweredProducts/Solutions

RecentAI-relatedAcquisitions/Ventures

Cooperation

Softwarerelatedrevenueshare

Siemens

Siemenslaunchedits"OneTechCompany"programin

SiemensIndustrialCopilot,GridscaleX(grid

AltairEngineering(industrialsimulation),Dotmatics

NVIDIABlackwellGPU,NVIDIA

2024aimingtoaccelerategrowthbymerginghardwarewithsoftware,AI,andsimulationtodeliverfasterinnovationandstrongercustomerfocus.

Schneider

Target:70%revenuefromdigitalservicesin2030;25%revenuefromsoftwareandservicesby2030.

EcoStruxure(severalAIbasedsolutionsandcopilot)

Aveva(anindustrialsimulationcompany)

NvidiaOmniverse(digitaltwins)

19%inFY25

ABB

AblendofdisruptiveAIandindustrial-gradeperformance,

GenixIndustrialAISuite,GenixCopilot,AI

Sevensense(AIvision/navigation),Meshmind(AI

NA

RoboticItemPicker,FlexleyMoverAMRswithVisualSLAM,OmniCoreController.

Honeywell

HoneywellfocusesonphysicalAIbyembeddingAIinto

HoneywellForgeIoTplatform,Smartshopping

Quantinuum(quantumcomputing),SparkMeter

Google(GeminiLLM,cloudAI

hardwarelikePLCandDCS.

platform,HoneywellPerformance+forguidedwork(warehousemanagement)

Integration(gridintelligence)

platform)

NA

Emerson

EmersonaimstocreateaboundlessautomationwithAI

AspenTechandDeltaVcontrolsystem

AspenTech(processindustrysoftware),National

TotalEnergies(industrialdata

Instruments(software-connectedautomatedtestandmeasurementsystem)

Rockwell

Acceleratesmartmanufacturinganddigitaltransformation

Emulate3D,AI-poweredrobotics,predictivemaintenancesolutions

OTTOMotors(AMRs)

NvidiaOmniverse,Microsoftcloud

29%inFY25

Fanuc

FocusonAI/IoTtoimproveproductsefficiency

AIServoMonitor(predictivemaintenance),AI-augmentedindustrialrobots

NA

NvidiaOmniverse

NA

Keyence

UsesAItosimplifyprogramming,enhancingdevicemanagement,andimprovingR&D

Visionsystems,AIaugmentedsensors,andnavigation

CADENAS(industrialsimulation)

NA

NA

Supcon

A"4+1"framework:oneindustrialAIsystem(TPT)andfourcoredataplatform(predictivemaintenance,simulation,IOToperatingsystem,qualityandoperationcontrolsystem)

TPTAImodel,UCS(AIdefinedcontrolsystem)

ZJ-humanoid

HuaweiCloud

9%in2025

Baosight

Bao