[Weekend Money] Chinese Firm Behind 'Usain Bolt-Level' Robot to Go Public This Year

Chinese humanoid robotics company Unitree, which made headlines for its "Usain Bolt-level" running capabilities, is set to go public. The securities industry anticipates that following Unitree’s listing, a performance-driven stock rerating of Chinese humanoid companies will begin.

According to the financial investment industry, Unitree submitted its IPO application to the STAR Market of the Shanghai Stock Exchange on March 20. Once listed, Unitree is expected to become the first humanoid robot company on the China A-share market. Unitree aims to raise 4.2 billion yuan (approximately KRW 910.7 billion). Ko Kyungbum, a research analyst at Yuanta Securities, stated, "The estimated IPO market capitalization is about 42 billion yuan (approximately KRW 9.1072 trillion)," adding, "Considering the companies listed on the STAR Market this year, Unitree’s listing is most likely to occur after the end of the third quarter."

Yonhap News Agency

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Analyst Ko sees Unitree’s competitiveness as being rooted in "cost-effectiveness." Unitree is recognized for vertically integrating its key components, thereby increasing accessibility through lower pricing. By reducing its dependency on external suppliers, the company has cut costs, secured market share with affordable pricing, and increased sales volume-successfully commercializing its products. As a result, Unitree ranked first worldwide in 2023, shipping 5,500 humanoid robots.

At the "Humanoid Sprint" held in Beijing, China on April 11, Unitree’s humanoid achieved a remarkable record. Unitree released a video on its social media account showcasing the H1 model running on the track, announcing, "We broke the world record for humanoid running speed." The measurement device in the video recorded a speed of 10.1 meters per second, compared to Usain Bolt’s speed of approximately 10.44 meters per second when he set the 100-meter world record (9.58 seconds) in 2009.

Despite the industry’s inherent challenges in generating profits due to high R&D costs, Unitree’s performance improvement is now seen as tangible. According to Analyst Ko, "Unitree turned a profit in 2024 as sales began to be reflected in its earnings," adding, "Last year, revenue and net profit surged by 335.4% and 204.3%, respectively, compared to the previous year, demonstrating rapid growth."

What about from an investment perspective? Analyst Ko described Chinese humanoid companies as being "at their lowest valuation range right now." He explained, "There is still time left before Unitree’s listing, and since it will list on the mainland A-share market, investment must be made through the Stock Connect, so the supply-demand effect from ETF inclusion may not occur immediately." However, he emphasized, "The price is attractive," citing that while Chinese humanoid robot stock prices remain sluggish, companies like Unitree are showing notable improvements in earnings. Ko advised, "Since this is the initial stage of performance-based stock rerating, now is the time for proactive action as valuation pressure is low."

As for promising related ETFs, he first suggested the "Global X Robotics & AI ETF" listed on the Hong Kong Stock Exchange. This product invests in Chinese robotics and AI companies, which are core to manufacturing automation, and is unique in that it is comprised entirely of Chinese companies, unlike U.S.-listed robotics ETFs. Analyst Ko commented, "Performance centered on Chinese core component companies with high domestic content and significant dependence from the public is expected."

For ETFs listed on the domestic stock market, he pointed to "TIGER China Humanoid Robot." Analyst Ko added, "By assigning greater weight to humanoid manufacturing companies, the share of UBTECH (10.8%) is the highest," and continued, "Performance-based growth in the Chinese humanoid robot value chain is expected to drive a stock rerating."

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