UBS released its first research report covering Unitree Technology.

The most valuable aspect of this research report is not that it tells you "Unitree's hardware is strong"—which is already a market consensus; Instead, it uses a clear three-layer framework to thoroughly break down Unitree's strengths and weaknesses, directly pointing out a key issue: the current 54-times expected 2027 price-to-sales ratio has already completely swallowed the "hardware leader + high growth" forecast. For valuations to continue climbing, it must rely on its "brain" to deliver on it.

UBS has broken down the capabilities of humanoid robots into three layers to assess:

Unitree leads significantly in "cerebellum + body," but the "brain"—that is, AI generalization capability—remains a common bottleneck across the entire industry, not just Unitree's problem.

| Hardware reigns supreme: Lowering prices and increasing volume, resulting in higher gross margins

Unitree's hardware barriers can be summed up in three keywords: self-development, cost reduction, and scaling up volume.

Full-stack in-house development: from motors to complete machines, core components are manufactured in-house. The self-developed M107 motor has a peak torque of 360N·m and uses a QDD (Quasi-Direct Drive) solution—"large motor + small transmission"—which is low-cost, responsive, and highly efficient, especially suitable for high-dynamic scenarios such as running and jumping.

Cost crushing: In 2024 and 2025, the average price of humanoid robots will drop by 56% and 36% respectively, but the overall gross margin has climbed from 43.6% to 60.3%. In the hardware industry, it is almost unheard of for prices to increase volume while gross margins have risen.

Practical Validation: Performed robot group dances on the Spring Festival Gala for two consecutive years, winning 11 medals at the inaugural World Robot Games, with gold and total medals both ranking first. The standard H1 version has a top speed of 3.3 meters per second, while the racing modified version peaks at 10 meters per second. The "Superman" prototype, released in August 2026, claims a top speed of 12.66 meters per second, surpassing the human running world record, but it has yet to pass independent third-party verification.

This capability directly translates into shipment volume and profit. By 2025, Unitree will rank first globally with shipments of 5,500 humanoid robots, and cumulative sales of quadruped robots will exceed 33,000 units. From 2022 to 2025, revenue is expected to grow at a compound annual rate of 140%, with net profit reaching 278 million yuan in 2025.

| Short-term profit pressure: It's not a problem, but a proactive choice

In the first half of 2026, Unitree's net profit margin will drop to 24%. There are three reasons: factory relocation dragging down gross margin, one-time expenses from Spring Festival Gala brand promotion, and R&D expenses increasing by 150% year-on-year.

Among these, the sharp increase in R&D expenses is the most noteworthy — about 39% of the IPO funds were directly invested in embodied AI models and core algorithms, with R&D investment expected to exceed 2 billion yuan over the next 2-3 years. This is precisely the financial mapping shifting the strategic focus from the "body" to the "brain."

UBS estimates that increased R&D investment will drag down net profit margins in the short term for 2026-2027, but is expected to stabilize above 19% in 2028-2030, with a compound annual net profit growth rate of about 57% from 2025 to 2030.

Simply put: Unitree is using today's profits to break through tomorrow's ceiling.

| DeepSeek's Investment: A Key Step in Equipping Robots with a "Brain."

In August 2026, DeepSeek and Unitree reached a strategic and capital partnership—acquiring 933,400 shares through a strategic IPO placement, investing about 141 million yuan, with a lock-up period of up to 36 months.

The 36-month lock-up period indicates that this is not a short-term financial investment, but a deep multi-year industry binding. The logic of the collaboration is clear: DeepSeek excels at the "brain"—large model capabilities; Unitree excels at the "body"—robot hardware, motion control, and physical world data. The two complement each other and are expected to significantly shorten the evolution cycle for robots from "moving" to "understanding, decision-making, and execution."

Of course, challenges also exist: initial R&D and computing power expenditures will increase, and the complexity of hardware and software integration and the commercialization timeline remain uncertain.

UBS's core valuation judgment is: the current 54-times 2027 P/E ratio fully reflects two expectations—the hardware leadership position, and the high compound annual revenue growth rate of 53% from 2026 to 2028.

To keep the valuation going higher, two conditions must be met: clearer progress at the "brain" level—not just running a demo in the lab, but enabling robots to complete new tasks in unstructured environments.

Technological advantages can translate into sustainable profits—technological breakthroughs alone are not enough; someone must pay for them, and it must be for industrial-grade scenarios.

Kingtech's Perspective | Three main threads, three rhythms

In the short term—the hardware leader remains solid, but valuations have been fully priced in

Unitree's hardware barrier is hard to break in the short term. The cost advantages brought by self-developed actuators, QDD solutions, and full-stack vertical integration, combined with the world's number one shipment volume and brand recognition, form a very thick moat. But a price-to-sales ratio of 54 times has already priced into expectations of "hardware leaders + high growth," so short-term chasing at high prices is not cost-effective.

Investors who already hold positions are advised to continue holding and wait for the catalyst of the "brain's progress"; Investors without positions can wait for pullbacks to a reasonable range before entering.

Mid-term — Watch for two signals of a breakthrough in the "brain."

In the medium term, whether Unitree's investment logic can shift from "hardware stocks" to "AI + hardware stocks" depends on two key signals: first, whether the DeepSeek collaboration can produce verifiable embodied large model results; Second, whether the proportion of industrial scenario revenue can substantially increase from the current single-digit figures. Once these two signals appear, the valuation system will undergo a reevaluation.

It is recommended to closely monitor the financial report data and product implementation progress for 2027-2028.

Long-term — the "selling shovel people" logic in the humanoid robot sector

In the long term, global demand for humanoid robots is expected to grow from 18,300 units in 2025 to 325,000 units in 2030, with a compound annual growth rate exceeding 70%, and the market size is expected to reach $16 billion. As the world's largest shipment volume and one of the few complete machine manufacturers to achieve large-scale profitability, Unitree naturally benefits from industry growth. No matter whose "brain" emerges in the end, it needs a reliable "body" to carry it—Yushu is exactly that "shovel seller."

Long-term investors can view Unitree as a core allocation target in the humanoid robot sector, buying on dips and buying in batches.