Dobot (the "Company") announced its annual results on March 24th, 2025. The Company as a whole has performed according to expectations, with revenue growth in line and net loss decreasing due to operating leverage. The main focus of the Company’s business plans has been if it is capable of transitioning into humanoid robots, with many transferable technologies between collaborative robots and humanoid robots, including its software, mechanical components (control, harmonic reducers). The Company’s valuation remains supported by its ability to continue to innovate and deliver new robotics products in the future. We may maintain our revenue forecast as we do not expect the Company’s new product lines to improve revenue in the near term. However, we may slightly decrease our net profit forecast for FY25-FY27 to account for the increase in research expenses incurred by its continued development of embodied intelligence. We will review our earnings estimates and our target price once the Company releases its first annual report.
　　Dobot’s revenue growth has mainly been driven by their six-axis cobots in downstream industrial companies. Revenue from six-axis cobots, four axis cobots, integrated cobots for FY24 was RMB209 mn, RMB95.8 mn, RMB56.5 mn, representing a YoY increase of 55.5%, -3.7%, 64.8%, respectively. Assuming a -7.0% yearly learning curve ASP reduction of six-axis cobots, we forecast FY25-FY27 ASP of RMB48.9k / RMB45.5k / RMB42.3k for six-axis cobots. We forecast volume for FY25-FY27 at 6,721/11,143/18,108 units, representing a YoY increase of 69.3%/65.8%/ 62.5%.
　　The Company’s business strategy centers on "Cobot Intelligent Upgrade + Embodied AI Robot Innovation". On this basis, the Company will strategically push forward embodied AI robot innovation to build a new paradigm of human-robot collaboration. Dobot will focus on enhancing R&D and product innovation, with focus on advancing technological research and product innovation, thus improving ease of use. The Company plans on accomplishing this through integrating AI and optimizing its modular designs, and improvements in mechanical technologies, including "precision assembly of flexible connectors".
　　Risks: 1) industry competition within both the Cobot industry and the Humanoid Robot industry; 2) geopolitical tensions leading to higher trade restrictions.