CMB International Securities: Upgraded Upmost Target Price to HK $140, Rating Increased to Buy.

The research report from China Merchants Securities International pointed out that UBTECH Robotics recorded a net loss of 410 million RMB in the first half of the year, which narrowed by 20% and 32% on an annual and quarterly basis, respectively, meeting the bank's expectations. During the period, the revenue increased by 27.5% year-on-year, with a net profit margin of 66.6%, improving by 39.4 percentage points year-on-year. Starting from September, the company will begin bulk deliveries of a 90 million RMB order for automobile clients, with industrial robot shipments expected to surpass 500 units for the year; the educational robot, "Walker X", will see 200 to 300 units delivered, totaling over 800 units for the year. Additionally, in September, the company secured a 250 million RMB purchase contract with a well-known domestic enterprise. The bank raised revenue forecasts for 2025 to 2027 by 5%, 4%, and 7%, while reducing loss forecasts by 4%, 2%, and 22%, reflecting stronger-than-expected robot orders and deliveries. The target price was raised from 110 HKD to 140 HKD, with a rating of "hold".