DOBOT's (02432) performance last year aligned with expectations, with the company leading the global market in collaborative robot shipments and demonstrating prudent expense control. The company's core business is expected to achieve stable growth this year, developing platform-based capabilities and evolving into a full-form embodied intelligence platform. Considering the recent shift in market sentiment and a general de-rating of valuations for companies within the AI robotics industry chain, the target price has been reduced from HK$76 to HK$56. This new target corresponds to a 2024 price-to-sales ratio of 29.3 times. The "Add" rating is maintained.

The firm believes that DOBOT's continued investment in R&D for its embodied intelligence platform, with a focus on large models, data, and engineering, may impact short-term profits. However, through data accumulation and model iteration, the company is well-positioned to build long-term competitive advantages in data and algorithms. Consequently, revenue forecasts for the current and next fiscal years have been raised by 9% and 18%, respectively, reflecting the expected revenue uplift from the expansion of its full-form embodied intelligence product offerings.