China automation & industrials

Research evidence excerpt

China automation & industrials

Macquarie Equity Research China automation & industrials

Figure 3 - Sensitivity analysis of LHDS revenue/ Figure 4 - Sensitivity analysis of Hengli Hydraulic

earnings to humanoid robot demand based on revenue/earnings to humanoid robot demand

MQe projections based on MQe projection

LHDS 2026E 2027E 2028E Hengli Hydraulic 2026E 2027E 2028E

Speed reducer Roller screw

ASP of components (Rmb) 800 755 713 ASP of components (Rmb) 1,000 887 824

Units 14 14 14 Units 14 14 14

Value (Rmb) 11,200 10,574 9,983 Value (Rmb) 14,000 12,414 11,532

Humanoid robot market Humanoid robot market

Annual sales volume of humanoid robot (k units) 50 100 200 Annual sales volume of humanoid robot (k units) 50 100 200

Market share % 70% 70% 70%

Market share % 30% 30% 30%

Humanoid robot revenue (Rmb m) 490 869 1,614

Humanoid robot revenue (Rmb m) 168 317 599 MCQe company revenue (Rmb m) 13,403 14,845 16,352

MCQe company revenue (Rmb m) 802 1,081 1,408

Humanoid robot contribution as % of total revenue 3.7% 5.9% 9.9%

Humanoid robot contribution as % of total revenue 20.9% 29.4% 42.5% Net margin % 15% 15% 15%

Net margin % 15% 15% 15% Humanoid robot net profit (Rmb m) 74 130 242

Humanoid robot net profit (Rmb m) 25 48 90 MCQe company net profit (Rmb m) 3,318 3,955 4,514

MCQe company net profit (Rmb m) 170 235 301 Humanoid robot contribution as % of total NP 2.2% 3.3% 5.4%

Humanoid robot contribution as % of total NP 14.8% 20.2% 29.8%

Source: Macquarie Research, July 2026

Figure 5 - Sensitivity analysis of Sanhua revenue/ Figure 6 - Sensitivity analysis of Shuanghuan

MQe projection based on MQe projection

Sanhua 2026E 2027E 2028E Shuanghuan 2026E 2027E 2028E

Actuator Speed reducer

ASP of components (Rmb) 910 690 523 ASP of components (Rmb) 800 755 713