Shenzhen Inovance Technology Co. Ltd - A Global China Summit takeaways: Second-order AI capex spillovers are emerging, supporting mix and project wins

Research evidence excerpt

Shenzhen Inovance Technology Co. Ltd - A Global China Summit takeaways: Second-order AI capex spillovers are emerging, supporting mix and project wins

in direction a clean read-through. The pricing

framework emphasized cost-driven adjustments with deliberate restraint: two rounds of

price actions were described across 2026 YTD timing (Jan and Mar-Apr), with triggers

tied to copper/storage and later inverter/PCB-related inputs, and further actions remain

possible if material costs re-accelerate. The important nuance is that this cycle’s objective

is stable GPM rather than ‘riding the upcycle’ to expand price aggressively, in contrast

to what has been observed at some foreign peers with more frequent rounds. That stance

matters because it prioritizes long-term customer stickiness and share gains, but it also

introduces a natural lag between cost shocks and reported margin recovery – so investors

will likely demand sequential evidence that IA price pass-through begins to show up in

reported gross margin from 2Q onward. Full-year GPM visibility remains constrained by

commodity uncertainty in 2H, but the internal positioning is that IA GPM is poised to be

stable to slightly up for FY26, while NEV remains under greater pressure and is harder

to underwrite in a single-quarter framework given competitive intensity and slower

sector growth.

• Humanoid/ESS/backup power add medium-term optionality. Humanoid

discussions were notably execution- and manufacturability-focused: the product thesis

leans toward multi-category, small-batch industrial scenarios where customers pay for

flexibility (not single-task automation), and cost/ROI becomes the gating factor for

enterprise adoption. Most parts (drive motors, sensors incl. force sensors, screws) are