WAIC 2026 reinforces the humanoid robot theme, but auto parts suppliers face a threefold challenge in customers, products, and talent

Overview

This report is Morgan Stanley's event commentary on WAIC 2026, focusing on the impact of the humanoid robot boom on Chinese auto parts suppliers. The report believes humanoid robots bring new business opportunities to auto parts companies, especially suppliers that can reuse existing R&D resources, CNC processing equipment, and material procurement channels; however, as the number of robots exhibited rises rapidly, the industry also faces issues such as difficulty identifying winning customers, product homogenization, retention of R&D talent, and short-term earnings pressure.

Core views

The core view is: opportunities exist, but monetization is becoming more difficult. Auto parts suppliers are relatively advantaged because the upfront investment required to enter humanoid robot customer systems may be lower than for new entrants; at the same time, orders from leading robot customers are scarce, smaller customers lack scale, and converging product portfolios will compress room for differentiation. Between thematic upside and earnings certainty, the report prefers Minth Group Limited because it has FY26 double-digit year-over-year growth guidance and is viewed as a name with both a humanoid robot narrative and fundamental support.

Analysis framework

The report uses event observation and industry mapping: it first compares the number of humanoid robots displayed at WAIC 2026 versus 2025, then assesses the opportunities and constraints for auto parts suppliers across four dimensions—customer selection, product supply, R&D talent, and earnings pressure—and finally combines covered-company ratings, target price history, and fundamental guidance to screen for relatively preferred investment targets.

Methodology notes

• Valuation methodDCF

  discounted cash flow valuation

  Minth Group Limited's base-case target price is derived from DCF valuation, with key assumptions including 13% WACC, 15.3% cost of equity, 6.3% cost of debt, 9% medium-term growth, and 3% terminal growth.

• Equity rating systemMorgan Stanley Relative Rating

  relative return rating

  Overweight means the stock's total return over the next 12-18 months is expected to be above the average total return of the analyst's covered industry on a risk-adjusted basis; Equal-weight means roughly in line; Underweight means below average.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Minth Group Limited (0425.HK)

  The report's preferred core target, rated Overweight, for gaining exposure to the humanoid robot theme.

  Strengths

  Has FY26 double-digit year-over-year growth guidance, with fundamentals that can support valuation; also has potential upside from humanoid robot projects.

  Weaknesses

  May still be affected by price competition in the auto parts industry, rising costs, and weaker-than-expected overseas expansion.

  Comparison

  Compared with suppliers relying only on the humanoid robot narrative, Minth also has a relatively solid earnings outlook.

  Risks

  A significant long-term slowdown in China's photovoltaic market, weak overseas sales growth, and rising labor costs.

• Ningbo Joyson Electronic Corp (600699.SS)

  An example of converging supply in humanoid robot components.

  Strengths

  Has launched the TeleHand dexterous hand and is also involved in AI head components, electronic skin, brain-domain controllers, and solid-liquid hybrid batteries.

  Weaknesses

  Expansion across multiple categories may face insufficient differentiation and intensified competition.

  Comparison

  Like Sanhua, Zhongding, Zhenyu, and Lens, its product portfolio is expanding into joints, hands, limbs, and sensors.

  Risks

  Product homogenization may intensify competition, and wrong customer selection could weigh on returns on R&D and capacity.

• Zhejiang Sanhua Intelligent Controls (002050.SZ)

  An example of a humanoid robot supplier expanding from actuators to hand modules and sensors.

  Strengths

  Management guidance indicates the product portfolio is extending from actuators to more robot modules.

  Weaknesses

  Product expansion may increase R&D investment and organizational complexity.

  Comparison

  Like other auto parts suppliers, it faces converging supply and rising difficulty in screening customers.

  Risks

  Intensifying competition, pressure on retaining R&D talent, and uncertainty in order realization.

• Tesla (TSLA.O) and Unitree

  Potential leading robot customers mentioned in the report.

  Strengths

  Seen as more attractive leading customers, and winning their orders could enhance supplier credibility.

  Weaknesses

  It is difficult for suppliers to win orders from leading customers.

  Comparison

  Compared with smaller customers, orders from leading customers have greater strategic value, but competition is also more intense.

  Risks

  If suppliers cannot enter leading customer ecosystems, upfront R&D and capacity investments may generate insufficient returns.

Key data

• Number of humanoid robots exhibited at WAIC 2026300+Higher than 150+ in 2025, indicating rising momentum in the humanoid robot sector.
• WAIC 2026 event dates2026-07-17 to 2026-07-20The report is based on observations from the World Artificial Intelligence Conference in Shanghai.
• Minth Group Limited ratingOverweightThe report states a preference for Minth to gain exposure to the humanoid robot theme.
• Minth Group Limited priceHK$26.80Listed in the table as the price on 2026-07-20.
• Minth Group Limited latest target priceHK$51In the target price history, the target price on 2026-06-15 was 51.
• Key DCF assumptions13% WACC; 9% medium-term growth; 3% terminal growthUsed for Minth Group Limited base-case valuation.
• Industry viewIn-LineThe China Autos & Shared Mobility industry view is broadly in line with the benchmark.

Impact & implications

From an investment perspective, the humanoid robot theme may expand the valuation upside for auto parts companies, but short-term share prices still need support from earnings resilience. If suppliers can reuse the R&D, manufacturing, and supply chain capabilities of their auto businesses, their capex and trial-and-error costs for entering robot components may be relatively low; however, intensifying competition, unclear customer concentration, and pressure on talent incentives mean not all related companies will successfully realize thematic gains. The report tends to favor names with both humanoid robot exposure and clear earnings growth support.

Risks

• The eventual winners among robot integrators remain unclear, making customer selection more difficult for suppliers.
• Product supply among auto parts suppliers is converging, and competition may intensify across categories such as joints, hands, limbs, and sensors.
• Humanoid robot startups are obtaining high-valuation VC/PE financing, which may increase pressure on listed auto parts companies from R&D talent attrition.
• 2Q/1H26 earnings may be affected by OEM price cuts, rising material costs, higher social security contributions, and FX losses.
• Minth Group Limited faces downside risks including a significant long-term slowdown in China's photovoltaic market, weak overseas sales growth, and rising labor costs.

What to watch

• The actual humanoid robot projects and customer lists obtained by auto parts suppliers after WAIC.
• Supply chain access and order allocation from potential leading customers such as Tesla and Unitree.
• The degree of product differentiation in humanoid robot components among companies such as Joyson, Sanhua, Zhongding, Zhenyu, and Lens.
• Whether auto parts companies spin off internal humanoid robot teams and provide equity incentives.
• Whether 2Q/1H26 results validate pressure from price competition, material costs, social security contributions, and FX losses.
• Delivery of Minth Group Limited's FY26 double-digit year-over-year growth guidance and progress in humanoid robot projects.