Deutsche Bank analysts have highlighted Shuanghuan's collaboration with Tesla on a new type of gearbox for humanoid robots, which they expect to be used in the waist joints of these robots. Shuanghuan's robotics gearbox subsidiary, Fine Motion, is set to go public, contributing to about 5% of its parent company's revenue and profit in 2025.
The company primarily serves China's electric vehicle market, including clients like Stellantis and BMW. Bernstein analysts argue that Shuanghuan is well-positioned to capitalize on the growing intersection of the automotive and robotics industries, particularly as companies like Xpeng and Xiaomi expand into robotics.
Bernstein rates Shuanghuan as outperform with a price target of 60 yuan, while UBS also rates it a buy with a target of 50 yuan, despite a slight reduction following second-quarter earnings due to sales pressure from BYD.
Analysts from Morgan Stanley emphasize the importance of reliable component suppliers as the humanoid robotics market develops, suggesting that Shuanghuan's established manufacturing capabilities could give it a competitive edge