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<Research>Daiwa Initiates Coverage on UBTECH ROBOTICS (09880.HK) with Buy Rating, $114 TP
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...
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<Research>Daiwa Initiates Coverage on UBTECH ROBOTICS (09880.HK) with Buy Rating, $114 TP
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UBTECH ROBOTICS (09880.HK)  +0.400 (+0.483%)    Short selling $13.39M; Ratio 4.788%   , 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.

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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)  0.000 (0.000%)    Short selling $151.60M; Ratio 11.959%   , BYD COMPANY (01211.HK)  -1.500 (-1.193%)    Short selling $923.24M; Ratio 18.369%   , and DONGFENG GROUP (00489.HK)  0.000 (0.000%)    Short selling $13.99M; Ratio 13.065%   . 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.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-27 16:25.)

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