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<Research>Daiwa Initiates Coverage on UBTECH ROBOTICS (09880.HK) with Buy Rating, $114 TP
Recommend 32 Positive 51 Negative 34 |
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UBTECH ROBOTICS (09880.HK), a smart robotics company, possesses cutting-edge technology and holds a strong market leadership position in the industrial humanoid robot sector, Daiwa said in a research report. Daiwa initiated coverage on UBTECH ROBOTICS with a Buy rating and a target price of HK$114. However, due to multiple rounds of equity financing, its valuation shows a sharp discount of 50% vs peers. Even if UBTECH ROBOTICS continues to record losses from 2025 to 2027, its revenue CAGR from 2024 to 2027 was estimated to be around 70%, nearly leading the industry. With the continuous evolution of its latest humanoid robot functions (sorting capability may be the next feature), it will increasingly replace human labor. UBTECH ROBOTICS’ humanoid robot shipments were expected to increase from an estimated 500 units in 2025 to over 10,000 units in 2027. Furthermore, as UBTECH ROBOTICS scales up production, the average selling price (ASP) may halve, drastically lifting demand for UBTECH ROBOTICS' humanoid robots, Daiwa anticipated. During 2026-27, as the cost reduction outpaces the decline in ASP, the gross margin of its humanoid robots will expand. UBTECH ROBOTICS is in a favorable position with confirmed orders from automotive OEMs such as GEELY AUTO (00175.HK), BYD COMPANY (01211.HK), and DONGFENG GROUP (00489.HK). During 2026-27, revenue from humanoid robots was projected to largely contribute to its total revenue, while short-term profit will be bolstered by its other products. AASTOCKS Financial News Website: www.aastocks.com |
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