CICC: Initiates Coverage of UBTECH ROBOTICS (09880) with an Outperform Rating, Target Price of 138 Hong Kong Dollars.

CICC releases research report, first covering UBTECH ROBOTICS (09880) with an outperform industry rating, target price of 138.00 Hong Kong dollars, based on long-term valuation method (18x P/S in 2027), with 26.8% upside potential compared to current stock price. Currently trading at 27x/18x P/S for 2025/2026, potential catalysts for stock price include the release of new products by humanoid Siasun Robot & Automation and bulk orders from major customers. The company is a pioneer in humanoid intelligent Siasun Robot & Automation, with forecasted revenues of 2-2.7 billion in 2025-2026. The company's technological advancements in humanoid Siasun Robot & Automation are expected to lead to mass production. Key points from CICC: - First listed company of humanoid Siasun Robot & Automation - Established in 2012, ranked third in China's Siasun Robot & Automation solution industry by revenue in 2022, listed on the Hong Kong stock market in 2023. Revenue in 2025H1 was 0.62 billion, a 28% increase from the previous year, with ongoing technological innovation in humanoid Siasun Robot & Automation. - Orders for humanoid Siasun Robot & Automation in 2025 are on the rise - The Walker series is UBTECH ROBOTICS' flagship Siasun Robot & Automation product, with accumulated public orders totaling 1.3 billion as of December 2025, exceeding management's expectations. Production of humanoid Siasun Robot & Automation is accelerating in 2025, with improved functionalities like data collection and industrial handling. - Education Siasun Robot & Automation holds the top market share, while consumer Siasun Robot & Automation is focusing on expanding overseas. - Providing a full range of educational products and solutions, with a market share of 22.5% in China's education Siasun Robot & Automation market in 2022; Consumer Siasun Robot & Automation: Revenue increased from 0.59 billion in 2020 to 4.77 billion in 2024, with a CAGR of 72.4%, driven by new product launches and overseas channel expansions. - High R&D investment, improving software and hardware technology capabilities - As of 2024, around 40.5% of the company's staff are involved in R&D, with an annual R&D investment of 400-500 million. CICC believes that the development of humanoid intelligent models and hardware innovations are still ongoing, giving the company a competitive advantage.