Industrial Securities Co.,Ltd. released a research report stating that HUAYAN ROBOTICS (01021) is a leading global collaborative robot company, primarily focused on industrial applications. The company holds advantages in products and technology, application scenarios, and customer and channel resources, benefiting from the favorable trends in the collaborative robot sector. Furthermore, the company's 7-axis humanoid arms, axial flux motors, and other motion components are expected to see significant volume growth. The firm forecasts the company's revenue for 2026-2028 to be RMB 5.90 billion, RMB 8.88 billion, and RMB 13.26 billion, representing year-on-year increases of +52.6%, +50.4%, and +49.4%, respectively. Adjusted net profit (Non-IFRS) for the same period is projected to be RMB 0.42 billion, RMB 0.84 billion, and RMB 1.48 billion, corresponding to year-on-year growth of +62.7%, +100.9%, and +76.5%. As of the market close on May 22, 2026, the company's stock price implies a Price-to-Sales (PS) ratio of 17.7x, 11.8x, and 7.9x for those respective years. The coverage initiation comes with an "Add" rating, suggesting investors pay attention. The key points from Industrial Securities are as follows:
HUAYAN ROBOTICS is a top-tier global collaborative robot company. Its predecessor (Shenzhen Dazu Robot Co., Ltd.) was established in September 2017, and the company completed its Hong Kong IPO in March 2026. HUAYAN focuses on the research and development, production, and sales of collaborative robots and their core components (motors, servo drives, joint modules, etc.). Its products are used in automotive, logistics, consumer electronics, healthcare, and other fields, reaching customers in Mainland China, Europe, the Americas, and other parts of Asia. According to Frost & Sullivan data cited in the company's prospectus, based on 2024 sales revenue, HUAYAN ROBOTICS held a 3.5% share of the global collaborative robot market, ranking fifth.
The collaborative robot sector is experiencing strong growth, driven by technological advancements, labor shortages, and factory automation, leading to sustained demand. Frost & Sullivan data cited in the prospectus estimates global collaborative robot sales revenue will reach RMB 9.8 billion in 2025 and is projected to grow to RMB 35.0 billion by 2029, representing a compound annual growth rate of 37.4%.
HUAYAN possesses full-stack hardware and software capabilities, with leading core technical indicators. The company has achieved in-house R&D of key motion components such as torque motors, servo drives, reducers, and controllers. Its HRC Embodied Intelligence Control Platform supports integrated collaboration of multimodal perception, autonomous decision-making, and precise execution. The company's collaborative robot products rank at the forefront of the industry in core metrics such as repeat positioning accuracy, absolute positioning accuracy, operating temperature range, maximum payload, payload-to-weight ratio, and maximum TCP speed.
The company has accumulated expertise in application scenarios and customer and channel resources. Collaborative robot end-user demand is fragmented and application scenarios are complex. HUAYAN has established a cooperative model with system integrators based on "joint scenario solution creation and market resource sharing." It has continuously built professional capabilities in representative application scenarios like precision machining, intelligent welding, logistics palletizing, medical testing, and screw fastening. Its end customers include leading companies in high-end manufacturing, semiconductors, new energy, medical testing, and other diverse fields.
The company is advancing embodied intelligence, with promising volume growth expected for products like its 7-axis humanoid arms. In April 2026, the company launched the Echo and HY series, each comprising three models of 7-axis humanoid arms with different load capacities, designed to meet the needs of scenarios such as laboratories, commercial services, households, 3C screw fastening, automotive parts assembly, machine tool loading/unloading, and large-component assembly. HUAYAN's 7-axis humanoid arms feature self-developed integrated force-control joints and force-control algorithms, enabling high-precision force control across all joints. They integrate a local AI server and natively support ROS2, pushing decision-making capabilities to the edge. This allows for autonomous perception of deviations, judgment of anomalies, and real-time trajectory adjustments. The company's 7-axis humanoid arms are expected to reach leading humanoid robot OEMs and achieve significant volume.
In May 2026, the company launched its new generation of axial flux motors, which offer advantages such as high torque density, compact and lightweight design, and high energy conversion efficiency. Beyond internal use, these motors can also be sold directly to customers in areas like humanoid robots and low-altitude aircraft.
The company demonstrates revenue growth and sustained profitability. In 2025, revenue reached RMB 3.87 billion, representing a compound annual growth rate of 52.3% since 2022. By product revenue structure in 2025, collaborative robot products, core motion components, and collaborative robot services accounted for 74.1%, 25.6%, and 0.3%, respectively. By regional revenue structure in 2025, Mainland China, Europe, the Americas, and other overseas regions accounted for 63.2%, 29.5%, 3.8%, and 3.5%, respectively.
The company's gross margin was 37.6% in 2025, showing continuous improvement due to enhanced scale effects and product mix optimization. In 2025, the company's adjusted net profit (Non-IFRS) was RMB 0.26 billion, with an adjusted net profit margin (Non-IFRS) of 6.6%, marking the third consecutive year of profitability from 2023 to 2025.
Risk factors include technology risks, end-user demand falling short of expectations, intensified market competition, inventory and asset impairment risks, Hong Kong stock lock-up expiration risks, and operational risks of the company.
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