PLC (Programmable Logic Controller) is a digital operation system designed specifically for industrial environments, utilizing programmable memory to store instructions and control mechanical equipment or production processes through input/output.Essentially, a PLC is a digital operation electronic system designed for industrial environments, employing programmable memory to store instructions for executing logical operations, sequential control, timing, counting, and arithmetic operations, and controlling various mechanical or production processes through digital or analog input/output. Compared to traditional relay control systems, PLCs offer significant advantages such as compact size, low power consumption, high reliability, simple programming, and easy maintenance.
As the core control device in industrial automation, PLCs have been widely applied in various industries including manufacturing, energy, and transportation. With their high reliability, flexibility, and powerful control capabilities, they have become an indispensable component of modern industrial control systems.
The PLC was born in the late 1960s, originally designed to replace traditional relay control systems. In 1968, General Motors (GM) proposed the concept of a “programmable controller,” requiring that such devices be adaptable to frequent changes in production lines while maintaining high reliability and ease of maintenance. In 1969, Digital Equipment Corporation (DEC) developed the world’s first PLC, the PDP-14, marking the beginning of a new era in industrial control.
As the core device of industrial automation, leading PLC companies are primarily focused on technological research and development, market share, and industry applications.This article reviews the core device of industrial automation, the PLC, and, in light of the latest developments, selects five companies that are expected to continue benefiting in this field and shares these core concept stocks for further research:
1.Inovance Technology
Leading in the domestic PLC market with over 20% market share in small PLCs, its performance rivals that of Japanese brands. It focuses on the synergy between servo systems and PLCs, with widespread applications in the new energy sector (such as CATL battery production lines).The company is a leading enterprise in industrial automation products and the largest supplier of low-voltage frequency converters and servo systems in China.
Net profit growth of 40.15% in the mid-2025 report.
2.Leadshine Technology
Since its establishment, the company has aimed to become a leading player in China and a world-class motion control group. It has become a leading provider of motion control products and solutions, with products that combine stability and superior performance. PLC products, as important carriers in control products, will gradually lead the company to achieve innovative development, meeting the diverse and segmented needs of customers under various new business models and technologies, continuously creating greater value for customers.It is one of the few domestic companies with a comprehensive R&D platform for controllers, drivers, and motors, covering major areas of motion control.
Net profit growth of 2.22% in the mid-2025 report.
3.Inovance Technology
A major player in the localization of large PLCs, the LK series products have passed international certification and are used in high-reliability scenarios such as wind power and petrochemicals.The company is a leading enterprise in China’s industrial automation industry, maintaining a leading position in intelligent manufacturing and industrial automation, with its distributed control system (DCS) market share leading for several consecutive years, establishing a reliable brand image in the market.
Net profit growth of -31.46% in the mid-2025 report.
4.Xinjie Electric
A benchmark for customized economical PLCs, the XD/XC series covers basic control, while the XG/XS series enhances motion control functions. The company’s main business is the R&D, production, and sales of industrial automation control products. Its products mainly focus on electrical control systems within industrial control systems, including main controllers, human-machine interfaces, and electric actuators.
Net profit growth of 0.39% in the mid-2025 report.
5.Shuangjie Electric
During the construction of production lines, the company has introduced the concept of Industry 4.0, integrating intelligent manufacturing, automated distribution, PLC electrical automation, and MES system full-process control, tailored based on years of production experience, making it a leader in the domestic market.
Net profit growth of 20.11% in the mid-2025 report.
The localization rate of PLCs is expected to increase from 32% in 2024 to over 50% by 2027, driven by policies promoting the localization of industrial operating systems.The Yangtze River Delta and Pearl River Delta are forming industrial clusters, with leading companies accelerating the layout of “PLC + Industrial Internet”.
Disclaimer: This article does not constitute any investment advice, guidance, or commitment, and is for academic discussion only. Please read carefully. The market has risks, and investment decisions should be based on rational independent thinking.
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