CICC has maintained an Outperform rating on ROBOSENSE (02498) with a target price of HK$47.0, implying 26/27-year P/S ratios of 6.6x and 4.8x, respectively, and 38% upside potential. Due to the company's robust order book and improved profitability, the institution raised its 2026 revenue forecast by 7% to RMB 3.1 billion and upgraded its net profit attributable to shareholders from RMB 33 million to RMB 137 million. It also introduced initial forecasts for 2027 revenue and net profit at RMB 4.2 billion and RMB 382 million, respectively. The current stock price corresponds to 2026/2027 P/S ratios of 4.7x and 3.5x. Key views from CICC are as follows:
FY2025 revenue met expectations. The company reported its 2025 annual results, achieving revenue of RMB 1.941 billion, a year-on-year increase of 17.7%, and a net loss attributable to shareholders of RMB 146 million, which narrowed significantly and was in line with expectations. In the fourth quarter of 2025, revenue reached RMB 751 million, up 46.1% year-on-year, with the company achieving profitability for the first time in a single quarter, recording a net profit attributable to shareholders of RMB 106 million.
Financial highlights include: 1) Strong growth in the robotics business in Q4 2025, with revenue surging 427.5% to RMB 350 million; 2) A significant improvement in gross margin, which increased by 5.7 percentage points year-on-year to 28.5% in Q4 2025, attributed mainly to a higher contribution from the higher-margin robotics segment and structural cost reductions; 3) Profitability in Q4 2025, driven by revenue growth, economies of scale, and improved gross margins.
In the ADAS segment, digital products entered the mass delivery phase in Q4 2025, with a solid order book laying a strong foundation for revenue growth. ADAS LiDAR sales reached 609,000 units in 2025. By the end of 2025, the company had secured design wins for 163 vehicle models from 34 automakers and Tier-1 suppliers. Looking ahead to 2026, CICC expects ADAS LiDAR sales to achieve strong growth, driven by increased adoption rates among existing customers and new client additions. According to the earnings call, the company anticipates two leading automakers will each contribute 450,000 to 550,000 units in 2026, while Customer W is expected to contribute 150,000 to 200,000 units, and joint venture brands collectively adding 200,000 to 250,000 units.
In the robotics segment, multi-scenario applications are flourishing. LiDAR sales for robotics and other applications surged 1,141.8% year-on-year in 2025 to 303,000 units. The company guided for 2026 LiDAR shipments in this segment to reach 800,000 to 1 million units. In the robotic lawn mower sector, besides Kuma, ROBOSENSE has secured exclusive design wins with Weilan Dalu under Ninebot and a leading cleaning robot brand. In the Robotaxi and Robotruck sectors, it collaborates with Baidu Apollo Go, Didi, WeRide, Pony.ai, and leading North American L4 manufacturers. In unmanned delivery, partnerships include Neolix, Jiushi, Baixiniu, and JD.com. In the embodied robotics field, the company collaborates with nearly 50 leading clients.
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