Citi initiates coverage on Ubiquiti with a 'buy' rating and a target price of HKD 70

Golden data on January 17th, Citigroup research report pointed out that it first covered Youbi Option (09880.HK), with a rating of “buy/high risk” and a target price of 70 Hong Kong dollars. The bank pointed out that the company’s main revenue currently comes from educational and retail-level robots, while humanoid robots will be the company’s next driving force. It is estimated that it accounted for 1% of the revenue last year and is expected to account for 21% and 37% of the revenue in the next two years. The bank estimates that the company’s losses and operating cash flow next year will narrow by 64% and 45% compared to last year, and it may achieve a balance of payments in 2027. In addition, it is believed that the extension of the lock-up period for the chairman and three executive directors by 12 months can alleviate dumping pressure.