Huayuan Securities: Initial "Buy" Rating on Wobot Robotics, AI Embodied Home Robot Leader

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Huayuan Securities released a research report stating that they have initiated coverage and assigned a “Buy” rating to WoAn Robotics (06600). The firm expects the company’s revenue to be 900 million, 1.48 billion, and 1.94 billion yuan in 2025-2027, with year-over-year growth rates of 47%, 65%, and 32%, respectively. The current P/S ratios are 26, 16, and 12 times. Considering the company’s first-mover advantage and brand strength in the home embodied intelligence field, reliance on self-developed VLA models, self-built data factories, and standardized component capabilities to continuously improve generalization, and its successful overseas commercial cycle, future prospects look promising. The penetration of vertical niche products is expected to drive ASP and gross profit growth, creating a flywheel effect where models, data, and commercialization mutually reinforce each other.

Huayuan Securities’ main views are as follows:

• The world’s largest provider of AI embodied home robot systems, with over 95% of overseas revenue, focusing on Japan, Europe, and North America markets.

• The company offers robots designed for various home scenarios, including 1) enhanced execution robots, such as flexible skill robots (fingers, door locks, curtain robots) and enhanced mobile robots (multi-functional home robots, sports robots); 2) perception and decision-making systems, including smart central units, sensors, and cameras; 3) other smart home products and services. From 2022 to 2024, the company achieved revenues of 270 million, 460 million, and 610 million yuan, with a CAGR of 49%. The company’s revenue mainly comes from overseas markets, with Japan, Europe, and North America accounting for over 95% of total revenue from 2022-2024, with Japan as the initial market and rapid expansion into Europe and North America. In 2024, Japan, Europe, and North America contributed 58%, 21%, and 16% of total revenue, respectively. According to Frost & Sullivan, the company’s market share in global home robot systems was 11.9% in 2024, ranking first in retail sales.

• Focused on building a “brain” for general home robots and embodied robot products, forming a self-reinforcing flywheel of models, data, and commercialization.

• The core management team mostly comes from Harbin Institute of Technology, with strong technical strength and stable leadership. Professors ZeXiang Li and Bingqiang Gao serve as non-executive directors. The company independently develops and masters three core home robot technologies: robot localization and environment mapping, AI machine vision control, and distributed neural control networks. Relying on self-developed VLA models, self-built data collection factories, and standardized components, the company aims to continuously enhance the generalization of embodied models and promote their commercialization in vertical scenarios. By building a product-market fit-driven development system, the company effectively promotes an end-to-end innovation cycle of “technology R&D—product iteration—market validation,” creating a self-reinforcing flywheel of models, data, and commercialization.

• The business logic of home execution robots and perception-decision systems is stable, and new market expansion may continue to bring high growth.

• In 2024, the main business segments—enhanced execution robots and perception-decision systems—generated revenues of 350 million and 200 million yuan, accounting for 57% and 33% of total revenue. Leveraging unique demand insights and product iteration capabilities, the company has ranked first in Japan’s home robot retail sales for three consecutive years since 2022. According to Frost & Sullivan, by 2029, the global market size for enhanced execution robots and perception-decision systems is expected to reach 34.3 billion and 31.9 billion yuan, with CAGR of 61% and 69% from 2024 to 2029. The firm believes that by applying mature market experience to other overseas markets, the company can further increase its market share. Coupled with the continuous expansion of the global robot system industry, the company’s main business growth is well supported.

• Multiple vertical scenarios are blooming, with new growth poles in sports, companionship, and household robots.

• Starting in 2025, the company will launch the world’s first real-play AI tennis robot Acemate, the first locally deployed large model combined with autonomous mobility AI companion robot Kata Friends, and humanoid household robot OneroH1.

  1. Acemate Tennis Robot: Launched in May 2025, leveraging AI machine vision recognition, high-dynamic environment interaction, and real-time decision-making, targeting sports training scenarios. It opens a new market segment and may enable higher ASP through premium pricing. The product raised over $2.4 million on Kickstarter. According to Frost & Sullivan, the global tennis robot industry is expected to grow at a CAGR of 293% from 2025-2029, reaching a market size of 8.27 billion yuan by 2029.

  2. AI Companion Robot Kata Friends: Officially launched at IFA Berlin in September 2025, it is the world’s first pet-shaped AI robot combining local large model deployment with autonomous mobility, providing home companionship and emotional interaction. It can link with other home robots, and subscription-based services are expected to strengthen cash flow.

  3. Humanoid Household Robot OneroH1: To be unveiled at CES in January 2026, based on the VLA model with standardized hardware architecture, integrating dual 7-DOF arms and high-precision mobile chassis. Key applications include clothing sorting, dishwashing, and meal prep assistance. Mugenlabo reports that OneroH1 will be sold at less than $10,000 per unit. Fortune Business Insights estimates that the global household robot market will reach $107.2 billion by 2034, with a CAGR of 25.5% from 2025-2034. As the product matrix for home scenarios improves, the company’s bottom-up approach from high-frequency, vertical needs continues to validate scene value and establish pricing systems. The firm believes that with full-stack self-developed AI embodied intelligence covering perception, decision-making, and execution, it can achieve “one brain, multiple uses” and commercial applications across different vertical scenarios. The emergence of high-priced and best-selling products is expected to further expand market size and enhance competitiveness.

Risk Warning

Dependence on overseas markets and channels; risks related to new product categories volume and quality; global consumer demand and exchange rate fluctuations; intensified competition in smart home ecosystem platforms.