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

Huayuan Securities has released a research report initiating coverage and giving WoAn Robotics (06600) a “Buy” rating. 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 stock price corresponds to P/S ratios of 26, 16, and 12 times. Considering the company’s first-mover advantage and brand strength in the home embodied intelligence field, leveraging self-developed VLA models, self-built data factories, and standardized component capabilities to continuously enhance generalization, and successfully establishing a commercial closed loop overseas. Looking ahead, the penetration of vertical niche products is expected to drive ASP and gross profit growth, forming a flywheel effect where models, data, and commercialization mutually reinforce each other.

Huayuan Securities’s main points are as follows:

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

The company offers robots designed for various home scenarios, mainly including: 1) Enhanced execution robots, including flexible skill robots (fingers, door locks, curtain robots, etc.) and enhanced mobile robots (multi-functional household robots, sports robots); 2) Perception and decision-making systems, including intelligent central control, 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 to 2024, with Japan as the initial market, rapidly expanding 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 data, the company’s market share in global home robot systems was 11.9% in 2024, ranking first in retail sales.

Focusing on building a “brain” for general household robots and embodied robot products, creating a flywheel effect where models, data, and commercialization mutually promote and continuously strengthen each other.

Most core members of the executive team come from Harbin Institute of Technology, with strong technical capabilities and stable core team. 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 construction, AI machine vision control, and distributed neural control networks. Relying on self-developed VLA models, self-built data collection factories, and standardized components, it is expected to continuously improve the generalization ability 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,” forming a flywheel where models, data, and commercialization mutually reinforce each other.

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 of home robot systems generated revenues of 350 million and 200 million yuan from enhanced execution robots and perception-decision systems, accounting for 57% and 33% of total revenue. Relying on unique demand insights and product iteration capabilities, the company has ranked first in retail sales in Japan’s home robot system industry 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 leveraging mature market experience to other overseas markets could further increase market share. Coupled with the continuous expansion of the global robot system industry, the company’s main business growth is well supported.

Vertical scenario expansion, with three new business segments—sports, companionship, and household robots—opening new growth poles.

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

① Acemate Tennis Robot: In May 2025, leveraging AI machine vision recognition, high-dynamic environment interaction, and real-time decision-making, Acemate was launched to meet sports training needs. This opens a new market segment, and the company may achieve 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 to 2029, reaching a market size of 8.27 billion yuan by 2029.

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

③ Humanoid Household Robot OneroH1: To be released 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 and classification, dishware cleaning and storage, and meal preparation assistance. According to Mugenlabo, OneroH1 plans to sell at less than $10,000 per unit. Fortune Business Insights estimates that by 2034, the global household robot market will reach $107.2 billion, with a CAGR of 25.5% from 2025 to 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 realize “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 product competitiveness.

Risk warnings:

Dependence on overseas markets and channels; risks related to new product category volume and quality; risks from global consumer demand fluctuations and exchange rate volatility; increased competition in the smart home ecosystem platform.