UBTECH ROBOTICS (09880) has received a bullish outlook from Citi, being considered as the "next Tesla".

GMTEightapp learned that recently, "Tiangong Siasun Robot & Automation" has attracted market attention with its ability to climb outdoor stairs of 134 levels and a top speed of 12 km/h. Its performance in motion has refreshed the industry benchmark and validated the technical advantages of the research and development team led by Dr. Xiong Youjun, CTO of UBTECH ROBOTICS. UBTECH ROBOTICS (09880) is the main shareholder and general manager unit of the joint construction of the intelligence Siasun Robot & Automation innovation center by "Tiangong Siasun Robot & Automation". The new generation industrial humanoid Siasun Robot & Automation Walker S2 is scheduled to start production in the second quarter of 2025, and is expected to achieve breakthroughs in core indicators such as joint life and scene adaptability, further consolidating UBTECH ROBOTICS' landing capabilities in industrial scenarios. A recent report by Citigroup pointed out that the current valuation of UBTECH ROBOTICS can be compared to the level of the emergence of new energy vehicles like Tesla in 2010-2011. At that time, Tesla Roadster only delivered 1,500 units per year, but its market-to-sales ratio was as high as 24 to 25 times. It is predicted that UBTECH ROBOTICS' net loss in 2026 will narrow by 64% compared to 2024, and it may achieve breakeven in 2027, which is highly similar to Tesla's early development path. Currently, UBTECH ROBOTICS has a market value of $5.7 billion, only 14% of the valuation of the leading human-like Siasun Robot & Automation company Figure AI ($39.5 billion), while the industry penetration rate is still in the "0 to 1" stage, showing a significant growth premium space. Based on an expected market-to-sales ratio of 24 times in 2025, Citigroup raised its target price by over 100% to 142 Hong Kong dollars and included it in the Pan-Asia Market Focus List. Citigroup had previously announced in July 2024 that BYD Company Limited, Tencent, Shin-Etsu Chemical of Japan, Delta Electronics, and other stocks were on their "preferred buy" list, and including UBTECH ROBOTICS in this list would attract more attention from investors in the Asian region, gaining more financial support and cooperation opportunities. Previously, the international investment bank Morgan Stanley's research report "Humanoid Robot 100: Drawing the Value Map of the Humanoid Robot Industry" listed UBTECH ROBOTICS as the only Chinese listed company in the humanoid robot industry, considered one of the few publicly traded companies globally "closest to the pure humanoid robot concept" currently. Addressing concerns in the market about Tesla's Optimus competition risk, the Citigroup report pointed out that Tesla's humanoid robot Optimus would not compete with UBTECH ROBOTICS, because Tesla's identity as a manufacturer of new energy vehicles would limit Optimus' user base outside of new energy vehicle factories. UBTECH ROBOTICS has already cooperated with numerous automakers such as Dongfeng Liuzhou, GEELY AUTO, FAW-Volkswagen Qingdao Branch, Audi FAW, BYD Company Limited, BAIC New Energy, as well as 3C electronics companies like Foxconn and logistics companies like SF Express, establishing a competitive advantage in industrial manufacturing scenarios. The industrial humanoid robot UBTECH ROBOTICS Walker S has received over 500 orders from car plants and is currently in a crucial stage of industrialization. As the large-scale application of humanoid robots approaches, UBTECH ROBOTICS' financial structure is expected to be optimized. Citigroup predicts that by 2026, its net loss and operating cash outflows will narrow by 64% and 45% respectively compared to 2024, and it may achieve breakeven in 2027. With an expected market-to-sales ratio of 24 times in 2025, UBTECH ROBOTICS' target price should be 142 Hong Kong dollars. UBTECH ROBOTICS has been covered by many brokerage firms such as Guotai Junan Securities, Huatai, Haitong, Zheshang, Zhongtai, Northeast, with many of them giving a "buy" rating. Several positive ratings are related to the promising prospects of the humanoid robot industry, combined with UBTECH ROBOTICS' consistent investment in research and development, as well as the progress in the application of car factories released in 2024, recognizing the industry fundamentals and enterprise fundamentals of UBTECH ROBOTICS. The humanoid robot industry is currently in a critical stage akin to the overlap of the smartphone market in 2007 and the new energy vehicle market in 2013. UBTECH ROBOTICS, as the only primary target in the humanoid robot field, could become a core carrier for investment layout in the industry revolution.