Citigroup maintains a "Buy" rating on UBTECH ROBOTICS, optimistic about its first-mover advantage

Citi published a research report stating that UBTECH ROBOTICS (09880.HK) recently announced a placement of 31.468 million shares at a discount of 11.4%, which is expected to result in approximately 6.25% equity dilution. The bank currently maintains its earnings forecast but has lowered the target price from HKD 170 to HKD 155, corresponding to an estimated price-to-sales ratio of about 23 times for 2026.

The report indicated that UBTECH ROBOTICS earlier raised its delivery target for the Walker S series humanoid robots this year from 500 units to 600 to 700 units, which is close to the bank's forecast of 725 units and 2,000 units for this year and next year, respectively. To cope with the increase in delivery volume, the company is working to enhance its production capacity. The bank maintains its "Buy" rating, optimistic about its first-mover advantage in the humanoid robot industry