By Jiahui Huang
Shares of Chinese robotics companies rose sharply after officials released guidance on developing the humanoid robots industry, a move analysts say likely signals supportive policies to come.
More than a dozen companies in the sector gained in early trading on mainland bourses Friday.
Guangzhou Haozhi Industrial and Ningbo Zhongda Leader Intelligent Transmission rose by their daily limits, adding 20% and 10%, respectively. Reduction gear company Shanghai Anlogic Infotech jumped 4.3%, while Zhejiang Shuanghuan Driveline advanced 4.0% and motor company Kinco Automation (Shanghai) added 12%. Encoder producer Shenzhen Inovance Technology put on 4.2%.
The gains came after China's Ministry of Industry and Information Technology on Thursday released a guidance including three- and five-year strategic plans for developing humanoid robots. The ministry said one of the goals of the guidance is to "cultivate" two to three companies to emerge as global industry leaders by 2025, and have other small and medium-sized companies develop specializations in the field.
It also called for the establishment of a reliable supply chain by 2027.
"Humanoid robots could become another product of disruptive innovation after computers, smartphones, and new energy vehicles," the document states.
Few Chinese companies currently produce humanoid robots, but a host of others make key parts including motors, sensors, reduction gears and encoders.
Citic Securities analysts led by Ruipeng Li and Haibo Liu said in a research note that the government's guidance signal supportive policies to come.
"We think the guidance further refines the specific content and timeline on developing humanoid robot industry, which provides a direction for future industrial policy support, and will effectively stimulate and support China's humanoid robot industry," they wrote.
The analysts like Harbin Boshi Automation, Xiaomi and XPeng in particular, saying the companies have the capacity to develop humanoid robots and benefit from the government's goal of having local companies achieve global success in the field.
Orient Securities analyst Zhen Yang wrote in a note that he is optimistic about the sector's development, seeing "accelerating opportunities of localizing the production of core components and high-end equipment."
Huafu Securities analysts Wei Deng and Baolai You viewed the government's guidance as "a new high ground for technology competition," with the highly detailed measures likely to boost supply-chain development, they wrote in a research note.
Write to Jiahui Huang at firstname.lastname@example.org
(END) Dow Jones Newswires