"Big Banks" Bank of America Securities lowers UBTECH ROBOTICS target price to 160 yuan, reiterates "Buy" rating

Bank of America Securities published a research report indicating that UBTECH ROBOTICS (09880.HK) saw a year-on-year revenue growth of 69% in the second half of last year, which was 3% higher than the bank's forecast. This was attributed to increased contributions from high-margin humanoid robot business sales, with gross margin expanding by 15.8 percentage points year-on-year to 38.9%, exceeding the bank's expectation of 30.5%. The net loss was RMB 290 million, narrowing from a loss of RMB 607 million in the same period of 2024, outperforming the bank's forecast of a loss of RMB 434 million.

Considering UBTECH ROBOTICS's performance in the second half of last year, the bank raised its sales forecasts for 2026 and 2027 by 21% and 5%, respectively, and increased its gross margin forecast by 5 to 6 percentage points, expecting the net loss in 2026 to narrow to RMB 241 million. The bank lowered the company's target price from HKD 187 to HKD 160 and reiterated its "Buy" rating