Unitree Robotics made a spectacular entrance on Shanghai's STAR Market on Wednesday, with shares opening 629% above their IPO price. The surge briefly pushed the humanoid robot maker's market value past $60 billion, underscoring the intense investor appetite for China's robotics sector.
The stock opened at 1,100 yuan, compared with an IPO price of 150.80 yuan, before easing below 900 yuan in early trading. At the opening price, Unitree was valued at approximately 445 billion yuan ($66 billion), a sharp jump from the 61 billion yuan valuation at the offer price.
The Hangzhou-based company raised about 6.1 billion yuan ($900 million) by selling 40.45 million shares. Demand was overwhelming, with nearly 9.8 million retail accounts competing for just 9.7 million shares in the online tranche.
Scarcity premium meets China's robot boom
The debut offers public investors a rare direct stake in China's humanoid robotics push. Unitree led global humanoid robot shipments in 2025, selling about 5,500 units, and its machines have gained attention for their agility, including running, dancing, and martial arts.
Unlike many rivals still burning cash, Unitree is already profitable. Revenue surged more than fourfold to about 1.7 billion yuan in 2025, while adjusted profit reached roughly 591 million yuan. This combination of market leadership, profitability, and scarcity helps explain the premium investors are assigning to the shares.
Unitree also boasts a powerful shareholder base, including Tencent, Alibaba, and Ant Group, with DeepSeek and state-backed institutions participating in the IPO placement.
Valuation running ahead of the business
The rally leaves little room for operational disappointment. In the first quarter, revenue rose more than 68% year-over-year to 422.8 million yuan, but adjusted net profit dropped more than 52% to 40.3 million yuan as research, development, and sales expenses climbed.
Commercial adoption remains a key test. Unitree has warned that slower uptake of general-purpose robots could weigh on growth, highlighting the gap between rapid technical progress and the still-limited number of large-scale deployments.
Investors are pricing in a sharp expansion of embodied AI—systems that combine artificial intelligence with machines capable of acting in the physical world. Unitree becomes a test case for China's robotics listings, especially as the World Robot Conference opens in Beijing, where over 300 exhibitors are showcasing more than 2,000 products.
China has made embodied AI and robotics a strategic priority, with national and regional policies aimed at accelerating manufacturing and technology development. The push comes as competition with the US intensifies across advanced technologies, a theme also reflected in memory market dynamics.
While the debut has been spectacular, the question remains whether the valuation can be justified by fundamentals. The sharp profit decline in Q1 and the still-nascent commercial market suggest that investors are betting heavily on future growth. As Tesla's robotaxi bets show, AI-driven optimism can be powerful, but it also carries risks.
For now, Unitree's debut has set a high bar for other Chinese robotics companies planning to go public. Whether the stock can sustain its lofty valuation will depend on execution and the pace of adoption in the coming quarters.
This article is for informational purposes only and does not constitute financial advice.
