Airtac's June sales rose 28% y-y, while seasonal factors led to an m-m decline

Overview

This report is Nomura's monthly tracking of China's factory automation data, with the core focus on Taiwan pneumatic equipment manufacturer Airtac (1590 TT). About 90% of the company's sales come from China, so its monthly sales are used as an important proxy for observing China's automation and equipment investment cycle. June sales maintained strong year-on-year growth, but declined month-on-month due to seasonal factors that typically affect June and July.

Core views

The core view is that year-on-year data show China's factory automation demand remains strong, second-quarter sales exceeded forecasts, and management remains optimistic; the month-on-month decline is mainly seasonal and should not be directly interpreted as a structural weakening trend. Downstream sectors such as automobiles, machine tools, batteries, and electronics remain the main supports, with absolute sales in automobiles and machine tools continuing to rise; however, electronics and batteries have retreated slightly from their April peaks, and demand related to energy and lighting declined year-on-year.

Analysis framework

The report uses Airtac's monthly RMB sales as the main thread, further estimating average daily sales based on working days and breaking down contributions by downstream user industry; at the same time, it references indicators such as Komtrax China operating hours, JMTBA China general machinery machine tool orders, China's total social financing, and industrial production to cross-check demand for Chinese machinery and factory automation.

Methodology notes

• Industry cycle trackingMonthly sales y-y, m-m, and average daily sales

  Differentiate between real demand changes and calendar effects through nominal monthly sales and working-day-adjusted average daily sales.

  Airtac's June RMB sales increased 28% y-y and decreased 1% m-m; based on 23 working days, average daily sales are estimated to have increased 22% y-y and decreased 11% m-m, indicating y-y strength but seasonal m-m pressure.

• Downstream demand breakdownUser industry sales mix analysis

  Break down sales by end industries such as electronics, batteries, automobiles, and machine tools to identify growth drivers and structural drags.

  In June, most downstream industries posted y-y growth except for energy and lighting, with batteries, machine tools, automobiles, and electronics contributing more prominently.

• Macro and equipment investment cross-validationComparison of Airtac, Komtrax, JMTBA, and total social financing

  Compare company sales data with equipment utilization, machine tool orders, financing, and industrial production data to judge whether automation demand has external validation.

  The report places Airtac sales, Komtrax China operating hours, and JMTBA China general machinery machine tool orders within the same framework to assess China's machinery demand.

Asset mapping & comparison

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

• Airtac (1590 TT)

  A highly correlated proxy indicator for China's pneumatic equipment and factory automation demand, with about 90% of sales coming from China.

  Strengths

  June sales rose 28% y-y, second-quarter sales exceeded Nomura's forecast, and orders remained above shipments.

  Weaknesses

  June average daily sales fell 11% m-m, while electronics and battery sales have edged down from their April peaks.

  Comparison

  Compared with the year-on-year decline in Komtrax China operating hours, Airtac sales and JMTBA machine tool orders indicate stronger equipment demand.

  Risks

  If demand does not recover after the seasonal pullback, or if automobile and machine tool orders cool, sales momentum may weaken.

• China automobile automation demand

  One of Airtac's downstream user industries, with June sales up 30% y-y.

  Strengths

  Absolute sales in the automobile and machine tool industries continued to rise, showing that automation and equipment investment demand remains strong.

  Weaknesses

  It remains to be seen whether automobile demand will slow immediately after China's machine tool orders hit highs in May.

  Comparison

  June month-on-month declines in automobiles and electronics were relatively smaller, outperforming other downstream sectors.

  Risks

  If automobile capex or production line expansion slows, pneumatic equipment orders may come under pressure.

• Machine tool and general machinery chain

  Reflects manufacturing equipment investment and industrial upgrading demand.

  Strengths

  In June, Airtac's sales to machine tools rose 45% y-y and general machinery rose 28% y-y; JMTBA China general machinery machine tool orders were strong y-y in April-May.

  Weaknesses

  Nomura believes machine tool orders may peak in the near term due to seasonal factors.

  Comparison

  Machine tool orders performed better than Komtrax operating hours, indicating that new equipment demand is stronger than equipment utilization indicators.

  Risks

  A pullback in orders from high levels would weaken confirmation of the uptrend in factory automation conditions.

• Electronics and battery supply chain

  Important downstream sectors for Airtac; electronics is the largest customer industry, while batteries are a high-growth sector.

  Strengths

  June electronics sales rose 25% y-y and battery sales rose 50% y-y.

  Weaknesses

  Electronics and battery sales have declined slightly from their April peaks.

  Comparison

  Electronics has the highest sales weighting, while batteries are growing faster year-on-year but also show more volatility.

  Risks

  If AI, data center, or battery investment falls short of expectations, related automation demand may decline.

• Energy and lighting / solar-related demand

  A smaller downstream industry for Airtac, which the report links to solar-related demand.

  Strengths

  Its sales share is low, at about 3% in 2025, limiting its drag on the overall picture.

  Weaknesses

  June sales fell 8% y-y, making it one of the few negative-growth areas among major downstream sectors.

  Comparison

  Significantly weaker than downstream sectors such as batteries, automobiles, machine tools, and electronics.

  Risks

  Weak solar-related capex may continue to be a structural drag.

Key data

• June RMB salesCNY838,485 thousand; +28% y-y, -1% m-mAirtac disclosed its June sales data on July 2.
• Estimated June average daily sales+22% y-y, -11% m-mNomura's estimate based on 23 working days, noting that June and July usually see seasonal month-on-month declines.
• Sales in April-June 2026TWD12.2bnAbove Nomura's TWD11.6bn forecast, with quarterly sales remaining near historical highs.
• 2025 sales mixElectronics 27%, machinery 13%, batteries 14%, packaging 9%, automobiles 10%, energy and lighting 3%, others 24%Electronics remains the largest customer industry.
• June y-y performance by industryElectronics +25%, batteries +50%, automobiles +30%, packaging machinery +15%, machine tools +45%, general machinery +28%, textile machinery +19%, energy and lighting -8%Except for energy and lighting, downstream sectors generally posted y-y growth.
• JMTBA China general machinery machine tool orders+97% y-y in April 2026, +74% y-y in MayThe report believes machine tool orders may peak in the near term due to seasonal factors.
• Komtrax China operating hours92 hours in April 2026, -6% y-y; 89 hours in May, -5% y-yUsed to cross-check China's machinery demand alongside Airtac sales and machine tool orders.

Impact & implications

In terms of investment implications, Airtac's strong year-on-year growth and second-quarter beat support the view that China's automation demand remains in an upcycle, especially benefiting equipment chains related to automobiles, machine tools, batteries, and intelligent manufacturing. At the same time, the month-on-month pullback, the possibility that machine tool orders may have peaked, and the retreat in electronics and battery sales from prior highs suggest short-term momentum still needs to be validated. On the policy side, China's 15th Five-Year Plan emphasizes intelligent manufacturing, industrial upgrading, AI, and data center investment, which may support medium- to long-term demand for pneumatic equipment and automation.

Risks

• June and July have seasonal pullbacks; if demand does not recover afterward, strong y-y growth may be hard to sustain.
• JMTBA China machine tool orders may have peaked recently, potentially weakening marginal momentum in the equipment investment chain.
• If automobile demand slows rapidly from high levels, it will affect the quality of Airtac's downstream growth.
• Electronics and battery sales have edged down from their April peaks, and it remains to be seen whether this develops into a structural slowdown.
• Energy and lighting / solar-related demand declined year-on-year, indicating that some downstream sectors still face structural pressure.
• Policy support, total social financing, industrial production, and macro demand fluctuations may affect factory automation orders.

What to watch

• The y-y and m-m changes in Airtac's July sales and average daily sales, to verify whether the June pullback was mainly seasonal.
• Whether orders continue to exceed shipments, and whether management maintains its optimistic FY26 outlook for pneumatic equipment demand.
• Changes in absolute sales and growth rates in the four key downstream sectors: automobiles, machine tools, electronics, and batteries.
• Whether JMTBA China general machinery machine tool orders pull back from high levels.
• Whether Komtrax China operating hours, total social financing, and industrial production data remain consistent with Airtac's sales trend.
• The pace of implementation of policies related to China's 15th Five-Year Plan, intelligent manufacturing, AI, and data center investment.