Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>Citi: UBTECH ROBOTICS Unlikely to Turn Around Next Yr on Acquisition of FENGLONG Shrs
Recommend 2 Positive 3 Negative 1 |
||||
|
||||
|
UBTECH ROBOTICS (09880.HK), following its announcement of completing its sixth share placement in less than two years, has recently announced the acquisition of around 43% equity in FENGLONG (002931.SZ), a garden machinery parts company, at a price of RMB17.72 per share, totaling around RMB1.67 billion, according to a Citi research report. Given Citi's forecasts where UBTECH ROBOTICS will record net losses of RMB405 million and RMB12 million in 2026 and 2027 respectively, it is still unlikely that the company will turn profitable by 2026 even considering the profit contribution after the acquisition of FENGLONG. Instead, Citi believes UBTECH ROBOTICS' goal is to achieve business synergy by leveraging FENGLONG's manufacturing capabilities and customer base. Citi currently rates UBTECH ROBOTICS as Buy with a target price of HKD155. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
