Red alert: The AI bloodbath is not over yet! - Part 6

We had highlighted robot as one of the 5 promising sectors to invest in China/HK in our previous post and we would to share more information about the robot industry in China.

China is a market leader in humanoid robots (97% global market share) because of its massive market size, robotic technology and manufacturing capability.

Unitree robots (Kungfu robots) has been the main attraction on China media "New Year Celebration Gala" and its recent IPO is more than 8000 oversubscribed.

As unitree current production ouput is just around 12,000 units per annum, it is unable to fulfill the domestic and overseas demands.  Therefore, we've sourced for other alternatives to capitalize on this investment opportunity.

Another China robot company that is similar to Unitree is Ubtech and it is listed in HK.  However, Ubtech production output is only around 6000 units per annum, about 50% lesser than Unitree.

Alternatively, we can invest in some China EV companies that are also venturing into humanoid production.  For examples, Xpeng, Xiaomi and BYD are also producing their own humanoids soon.

Xpeng will start its mass production of IRON humanoids in 2027 and its production output can reach 12,000 units per annum.

BYD and Xiaomi have not started their mass production yet but they've built their prototypes already.

Given the high valuation placed on Unitree, we can extrapolate and infer that these EV firms (Xpeng, Xiaomi and BYD) with high humanoid production capabilities will achieve higher valuations for their stocks too.  Cheers!