Unitree shares rise more than 60% in under two weeks — Channel NewsAsia
In China, shares of robot maker Unitree Robotics rose by more than 60% in less than two weeks amid optimism about humanoid robots. On Monday, the securities traded on the Shanghai Stock Exchange gained 7.7%, while on the morning of the following day they fell by about 1%, partly correcting the previous rise.
According to Channel NewsAsia, Unitree shares closed at 672 yuan on Monday, compared with 405.10 yuan on October 15. Monday's increase came after U.S. investment bank JPMorgan upgraded its rating on the company's shares from “underweight” to “overweight” and raised its target price from 300 to 995 yuan.
Assessment of robotics prospects
JPMorgan's upgrade came after Unitree founder Wang Xingxing said that a significant breakthrough in physical artificial intelligence could occur as early as next year. This is sooner than previous estimates, which suggested that a breakthrough could take up to ten years.
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China has made the development of humanoid robots a strategic priority. Chinese companies have demonstrated robots capable of running, dancing and performing martial arts, while seeking to expand their use in factories, warehouses and homes. Morgan Stanley estimates the Chinese humanoid robot market at $2 billion this year and forecasts that it will grow to $15 billion by 2030.
Company warning for investors
Despite the renewed interest, Unitree urged investors to assess the commercial prospects of humanoid robots cautiously. On October 21, the company issued a notice to the stock exchange after its shares had risen by more than 30% over three trading sessions.
The company said the industry was at an early stage of commercialization and faced uncertainty regarding technological maturity, the development of end-market demand and supply-chain capacity. Unitree went public in Shanghai in August: at the start of trading, its shares opened 629% above the IPO price, though their current value remains below the debut level.
