According to Citigroup in "The Big Banks," UBTECH ROBOTICS' stock price is expected to respond positively to its performance

Citigroup published a report stating that UBTECH ROBOTICS (09880.HK) narrowed its net loss by 37% year-on-year to RMB 703 million, which is 20% and 31% lower than the bank's and market forecasts, respectively; the gross profit margin increased by 9 percentage points year-on-year to 37.7%, higher than the bank's forecast of 30.1% and the market's forecast of 31.3%; revenue from humanoid robots surged 22 times year-on-year to RMB 820 million (a total of 1,079 units), exceeding the bank's original estimate of RMB 508 million (725 units) by 61%.

The report indicated that the improvement in UBTECH ROBOTICS' gross profit margin mainly comes from its humanoid robot business, which achieved a gross profit margin of 54.6%. The company also revealed that by 2025, the gross profit from humanoid robots will reach RMB 448 million, growing 15.7 times year-on-year, accounting for 59% of the company's total gross profit.

The bank expects UBTECH ROBOTICS' stock price to react positively to this better-than-expected performance in 2025. It reiterated a "Buy" rating, citing its first-mover advantage in the humanoid robot industry. The target price is HKD 155