Unitree’s stock slump since IPO stokes fears of a bubble in Chinese humanoid robotics

Even after the sell-off, Unitree’s market value is more than four times the top of the range indicated by lead underwriter Citic Securities

The stock rose nearly 4 per cent to close at 615 yuan on Thursday, giving the company a market capitalisation of 248.8 billion yuan (US$37 billion), after touching a record low of 571 yuan on Wednesday.

That low marked a 48 per cent drop from its peak of 1,100 yuan on its August 19 debut, wiping out 200 billion yuan in market value.

“Given that level of uncertainty, Unitree’s high valuation is probably not justified,” said Dong Chen, chief investment officer for Asia at Bank J. Safra Sarasin, citing the stock’s lofty price-to-earnings ratio and the difficulty in staying ahead in an “infant level” industry where competition was intensifying.