As interest in humanoid robotics shifts from novelty to commercial viability, stock analysts highlight the potential of Shuanghuan, a gearbox supplier co-developing a new reducer technology with Tesla. This component, essential for converting motor power into mechanical movement, is anticipated to be utilized in the waist joints of humanoid robots. Deutsche Bank analysts project Shuanghuan’s robotics gearbox subsidiary, Fine Motion, will capture attention in its upcoming initial public offering, representing about 5% of the parent company’s revenue and net profit by 2025.
The company predominantly serves electric vehicle manufacturers in China, as well as global automakers like Stellantis and BMW. Analysts have given Shuanghuan a "buy" rating, with a price target set at 45 yuan ($6.70). Analysts at Bernstein also highlight the emerging robotics sector, suggesting that Shuanghuan is well-positioned to capitalize on expansion in humanoid robotics from Chinese automotive original equipment manufacturers. This sector could become a significant market driver.
Xpeng, another Chinese electric vehicle manufacturer, recently valued its robotics business at approximately $6 billion, paralleling its electric car operations. Additionally, other tech companies, such as Xiaomi, are starting to enter the humanoid market. As the U.S. and China navigate technological decoupling, Bernstein believes Shuanghuan could benefit from increased demand for cost-efficient mechanical components and lower regulatory risks. UBS supports this perspective, despite having revised its price target for Shuanghuan following pressure from key clients. In conclusion, Morgan Stanley’s analysis from the recent World Robot Conference emphasizes a focus on dependable parts manufacturers like Shuanghuan as the industry matures.
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