UBTECH ROBOTICS Allegedly Finalizes Agreement with Airbus for Humanoid Robots in Aviation Manufacturing

The analyst rating for UBTECH ROBOTICS is a "Buy" with a target price of HKD 155, as maintained by Citi. The reasoning behind this rating is based on the company's strategic acquisition of approximately 43% equity in FENGLONG, which is expected to create business synergies by leveraging FENGLONG's manufacturing capabilities and customer base. Despite forecasts indicating that UBTECH ROBOTICS will continue to incur net losses in the coming years, Citi believes that the acquisition will ultimately benefit the company's long-term prospects, even though profitability by 2026 seems unlikely.

The analyst rating of "Outperform" for UBTECH ROBOTICS (09880.HK) is based on several key factors highlighted in the report by CICC. The company is recognized as a pioneer in embodied intelligence robots, indicating a strong position in an innovative and growing market. CICC projects significant revenue growth for the company, estimating revenues of RMB2 billion in 2025 and RMB2.7 billion in 2026, despite anticipated net losses of RMB810 million and RMB520 million for those years. The broker believes that UBTECH ROBOTICS is well-prepared in humanoid robot technology and is leading in mass production capabilities. Additionally, potential catalysts for growth include the launch of new humanoid robot products and securing batch orders from major clients, which could further enhance the company's market position and financial performance.