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Unitree Robotics shares rebound after steep IPO losses
The stock rose nearly 4.0% to 615 yuan after hitting a 571 yuan record low, leaving the IPO down 48.0% from its Aug. 19 debut peak.
Unitree Robotics shares rebounded on Thursday after five straight days of losses that had erased nearly half of the company’s market value, according to SCMP Economy. The stock rose nearly 4.0% to close at 615 yuan, following a record low of 571 yuan on Wednesday.
The article said the Wednesday low marked a 48.0% drop from Unitree’s peak of 1,100 yuan on its Aug. 19 debut, wiping out 200 billion yuan in market value. The move also left the company with a market capitalization of 248.8 billion yuan, or about US$37 billion, after the rebound.
Despite the bounce, SCMP Economy reported that concerns persist about a potential bubble in China’s humanoid robot sector. Dong Chen, chief investment officer for Asia at Bank J. Safra Sarasin, said the high valuation appears difficult to justify given uncertainty, citing the stock’s lofty price-to-earnings ratio and intensifying competition in an early-stage industry.