Robotics-related stocks saw a widespread pullback in Hong Kong trading.
At the time of writing, shares of Johnson Elec H (ASX: 00179) were down 6.64% to HK$19.25. Zhaowei (ASX: 02692) shares fell 5.04% to HK$47.62. Lens (ASX: 06613) dropped 3.73% to HK$21.18, while Sanhua (ASX: 02050) declined 2.92% to HK$27.28.
The market movement follows news that Unitree Technology's application for an initial public offering on the Shanghai Stock Exchange's STAR Market has received approval from the securities regulator. The IPO process, from acceptance on March 20 to approval on June 1 and final registration on July 2, was completed in just 104 days, setting a record for the fastest review on the STAR Market. With this registration approval, Unitree Technology is now one step away from a formal listing on the A-share market and is poised to become the first publicly listed humanoid robotics company in China.
In a research note, Xiangcai Securities stated that while investors may focus on the company's scarcity value, a rational assessment of multiple factors is necessary. From a valuation perspective, the IPO pricing for Unitree Technology corresponds to high market expectations. There is significant divergence among institutions regarding its reasonable post-listing market capitalization, and this wide valuation gap suggests that share price volatility after listing could be substantial. Investors are advised to be cautious of potential pullback risks amid these elevated expectations.
On the fundamental side, it remains to be seen whether the company's profitability can return to a growth trajectory as the effects of its research and development efforts gradually materialize. The trend of near-term earnings pressure is also a point of concern and warrants attention. Furthermore, there is uncertainty over whether Unitree's first-mover advantages can be consistently translated into sustainable competitive strengths.
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