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UBTECH Robotics Acquisition: UBTECH Robotics has acquired approximately 43% equity in FENGLONG, a garden machinery parts company, for around RMB1.67 billion, marking its sixth share placement in less than two years.

Financial Outlook: Despite the acquisition, Citi forecasts that UBTECH will incur net losses of RMB405 million and RMB12 million in 2026 and 2027, respectively, indicating challenges in achieving profitability by 2026.

Strategic Goals: Citi suggests that UBTECH's primary aim with the acquisition is to create business synergies by utilizing FENGLONG's manufacturing capabilities and customer base rather than immediate profit generation.

Market Rating: Citi maintains a "Buy" rating for UBTECH Robotics, setting a target price of HKD155, reflecting a positive outlook on the company's potential within the humanoid robot supply chain.

Hong Kong Stock Market Performance: Hong Kong stock futures rose on settlement date, with the HSI increasing by 219 points (0.9%) to close at 25,854, while the HSCEI and HSTECH also saw gains of 1.1% and 1.7%, respectively, with total market turnover reaching $199.769 billion.

IPO Activity: ILUVATAR COREX (09903.HK) launched its IPO aiming to raise approximately $3.677 billion, indicating a strong interest in the market.

Chip Stocks Surge: BIDU-SW (09888.HK) and SMIC (00981.HK) experienced significant stock price increases of 8.9% and 4.2%, respectively, driven by market anticipation around new chip technologies and acquisitions.

Robotics Sector Growth: JD's partnership with Unitree Robotics led to a rise in robotics stocks, with INNOSCIENCE (02577.HK) and SANHUA (02050.HK) seeing substantial gains of 15.4% and 12.5%, respectively, reflecting growing investor interest in the sector.