Summary of Key Points
The IPO issue price for Yushu Technology is 150.8 yuan, corresponding to a market value of 61 billion yuan, which has generated extremely high interest from new investors due to the impressive gains of new stocks on their first day this year. However, this valuation is not based on the company's current business strength but rather on the market's expectation that it will evolve from a "research tool supplier" into a "general-purpose robotics platform" in the future—meaning it will need to develop the "brain" (cognitive and decision-making capabilities) for embodied intelligence to enter industrial production or household scenarios. Currently, Yushu's robots are mainly sold to universities and laboratories, with industrial applications accounting for less than 3% of its revenue. These robots only possess "small brain" (motion control) capabilities and lack generalized intelligence. Institutional investors participating in the IPO are mostly seeking short-term arbitrage opportunities, and the long-term risks will be borne by those who purchase the shares on the secondary market.
Detailed Analysis
1. Why are so many people eager to invest in Yushu's IPO?
The market has been very interested in how much money can be made from a single share of Yushu this year because new stocks have performed exceptionally well. Since 2026, 25 new stocks on the STAR Market and GEM have not broken below their issue prices on their first day of trading, with an average increase of over 400% and a median increase of nearly 290%. Some shares even generated profits of over 100,000 yuan per share. For example, if you invest 75,400 yuan in Yushu and the stock price rises by 100% on the first day, you could make a profit of more than 70,000 yuan; a 200% increase would result in a profit of 150,000 yuan. This expectation of steady profits has driven investors to go crazy. Additionally, strategic placements by entities such as social security funds, Tencent, and PetroChina, along with the enthusiasm of institutional investors for offline bidding, have pushed Yushu's issue price far above what is typical in the primary market.
2. Is a market value of 61 billion yuan reasonable?
Based on the issue price, Yushu has a price-earnings ratio (P/E) of 219 and a price-sales ratio (P/S) of 35.9, compared to industry peers like Ebot and Yuejiang, which have average P/S ratios of only 19.7. This indicates that the market is pricing Yushu based on its potential for the future—specifically, its ability to transition from a company that sells hardware to laboratories to one that provides functional robots for factories and households. However, this "future version" of Yushu is not yet a reality; its robots have not even made a significant impact in industrial settings, let alone household applications.
3. To whom are Yushu's robots sold?
In 2025, Yushu sold 5,500 humanoid robots, generating a net profit of 591 million yuan after deducting non-recurring expenses. Nearly all of this revenue (73.6%) came from research and education, with only 9% coming from industrial applications, and within industry applications, less than 29% was used in intelligent manufacturing or inspection tasks. In other words, industrial revenue accounts for about 2.6% of total sales. Universities purchase robots for experiments, while factories are unlikely to buy them in large quantities because the robots cannot create sustained value on production lines (e.g., replacing workers). The fact that 5,500 units were sold merely proves that the company can produce and sell products, not that it can generate profits for its customers.
4. What does Yushu need?
Simply being able to move around is not enough; robots also require a "smart brain." Yushu's current robots can walk, run, and perform complex actions, but they lack the ability to understand their environment (e.g., obstacles in a factory), handle unfamiliar tasks (e.g., assembling different parts), or make autonomous decisions. The company plans to use half of the funds raised (2 billion yuan) for research and development of intelligent models. However, investing money does not equate to having the necessary capabilities. Embodied intelligence requires cognitive and generalized abilities, which Yushu has only partially developed over the past decade, mainly in areas related to machinery and motion control.
5. Who is taking short-term risks, and who will bear long-term risks?
Institutional investors participating in the IPO do not need to wait for Yushu to become more intelligent; they can sell their shares as soon as they are listed (90% of the shares allocated to them are available for sale). They are betting on a short-term gain on the first day of trading, not on Yushu's future performance. The long-term risks lie with those who purchase the shares on the secondary market. Even if the stock price rises significantly on the first day, it does not mean that Yushu has developed the necessary capabilities or entered industrial or household markets. The initial surge in price may be due to the scarcity of new stocks, and the true test of its 61 billion yuan market value will only become apparent when the excitement surrounding the IPO subsides.
Conclusion
Yushu's 61 billion yuan market value represents the market's belief in its potential as a future general-purpose robotics platform. Whether this valuation will be realized depends on whether Yushu can develop the necessary "brain" capabilities within the next few years. Otherwise, the current enthusiasm might just be part of a short-term arbitrage strategy.