Guotai Haitong Securities has released a research report estimating that Rokae Robotics (03752) will achieve revenues of RMB 1.088 billion, RMB 1.810 billion, and RMB 2.890 billion for the years 2026 through 2028, respectively. Using comparable companies as reference and adopting 2028 as the valuation base year, the brokerage combined PE and PS valuation methods to arrive at a target price of HKD 60.49 per share and assigned an "Overweight" rating.
The firm believes that Rokae Robotics is a leading domestic player in both industrial and collaborative robots. Benefiting from the ramp-up of embodied intelligence business, the company saw strong revenue growth in the first half of 2026, with economies of scale beginning to materialize and an earnings inflection point starting to emerge. The key points from Guotai Haitong Securities are as follows.
A Robot Platform Company Building an Integrated Technology, Product, and Application Platform
Rokae Robotics is one of the few domestic manufacturers that has simultaneously achieved large-scale mass production of industrial robots, flexible collaborative robots, and embodied intelligence robots. The company uses its self-developed xCore control system to build an "integrated technology, product, and application platform," empowering iterative robot innovation and enabling its robot products to reach internationally top-tier levels in key performance indicators such as repeat positioning accuracy, speed, and force control precision.
Embodied Intelligence Robots Ramping Up, Revenue Mix Shifting Toward High-Growth Track, Gross Margin and Cash Flow Improving in Tandem
In the first half of 2026, the company's robot product sales revenue reached RMB 394 million, representing a year-on-year increase of 162.2%. Sales volume rose from over 4,000 units in the same period last year to over 13,000 units. Among this, embodied intelligence robot revenue reached RMB 139 million, with its revenue share surging from 0.2% in the prior-year period to 33.5%, becoming the core engine of revenue growth. Industrial robot revenue was RMB 150 million, up 68.7% year-on-year, while flexible collaborative robot revenue was RMB 105 million, up 72.1% year-on-year, reflecting the continued realization of product competitiveness. As revenue scaled up, economies of scale gradually emerged, with gross margin in the first half of 2026 rising to 29.8%, up 7.5 percentage points year-on-year. After excluding inventory write-downs, gross margin increased from 23.8% in the prior-year period to 31.2%. Adjusted net profit turned positive at RMB 18 million, and operating cash flow shifted from net outflow to net inflow, indicating improved earnings quality.
Increased Investment in R&D and Globalization, IPO Proceeds Strengthen Growth Foundation
The company has stepped up research and development as well as market investment, with R&D expenses of RMB 64 million and sales and marketing expenses of RMB 58 million in the first half of 2026. Its self-developed force-controlled joints achieve precision of less than 0.5N, continuously strengthening product competitiveness. In the first half of the year, overseas revenue reached RMB 27 million, up 86.5% year-on-year. The company has established spare parts warehouses in 9 countries, with service coverage extending to 13 countries and regions. In July 2026, the company listed on the Hong Kong Stock Exchange, raising net proceeds of approximately HKD 937 million from the global offering, of which approximately 35% is allocated to research and development, 25% to overseas sales networks, and 22% to capacity expansion.
Risk Warning
Risks include R&D falling short of expectations and market demand falling short of expectations.
Comments