BOCOM INTL: Initiates a Buy rating for HUAYAN ROBOTICS (01021) with a target price of HKD 23.13.

BOCOM INTL released a research report stating that it initiates coverage of HUAYAN ROBOTICS (01021) with a Buy rating and a target price of HKD 23.13. BOCOM INTL pointed out that HUAYAN ROBOTICS is not merely a single collaborative Siasun Robot & Automation manufacturer as the market generally believes. It has gradually grown into a platform-based Siasun Robot & Automation company, built on the scale of collaborative Siasun Robot & Automation, with core motion components and motion control capabilities as the core of its growth. This represents one of the largest discrepancies in current market expectations. The firm believes that the company's valuation logic has shifted from "collaborative Siasun Robot & Automation entity" to "Siasun Robot & Automation parts supplier." Revenue and profits are entering a phase of accelerated release, with projected revenues for 2026-2028 expected to be RMB 607 million, RMB 1.118 billion, and RMB 1.386 billion, representing a compound growth rate of approximately 51%. Net profits are expected to be RMB 17 million, RMB 122 million, and RMB 205 million, respectively. The firm anticipates that as the proportion of core motion components increases, gross margins improve, and expense ratios decline, the company's profit elasticity is expected to gradually be released. The current target price corresponds to a 10x target price-to-sales ratio for 2027, with a valuation higher than that of typical collaborative Siasun Robot & Automation entities, primarily reflecting the higher growth potential, profitability, and technical barriers of core motion components.