Summary of Key Points
YuShu’s listing is no ordinary IPO; it represents the first domestic company to go public on the A-share market as a humanoid robot manufacturer. The offering price of 150.8 yuan and a price-earnings ratio (PE) of 219 times (far higher than the industry average of 38 times) have sparked market frenzy. However, there is a specific logic behind this: YuShu has become a “valuation benchmark” for the humanoid robot industry, influencing the pricing of entire sectors. Institutions hold most of the shares, while retail investors are merely casual onlookers. The market is not buying into current performance but rather the potential of the future industry. At the same time, YuShu faces challenges such as a limited customer base, slower cost reduction compared to price increases, and a weak “brain” (AI model). Its success or failure is crucial for the entire industry’s confidence, making this a “project that cannot afford to fail.”
I. This is Not an Ordinary IPO; It’s a Industry “Pricing Benchmark”
YuShu’s listing breaks traditional patterns: while other companies are tested by the secondary market after going public, YuShu had investors and peers placing their bets before the actual listing. Its uniqueness lies in:
- Unique Status: As the first domestic A-share company specializing in humanoid robots, there was no previous public valuation reference for this sector. Its initial offering value of 61 billion yuan has set a standard for subsequent robot companies (such as YueJiang and YunShenDu) and cross-industry players (like Xpeng and Lenovo). If YuShu performs well, other companies will use this as a benchmark; if it underperforms, they will need to re-evaluate their own value.
- Fast Business Transformation: Three years ago, the company mainly sold quadruped robots, with humanoid robots accounting for less than 2% of revenue. Now, humanoid robots account for half of its income (868 million yuan), and by developing its own core components (joint motors and reducers), it has shifted from consumer hardware to general-purpose hardware, proving that private robot companies can also be profitable.
II. High Valuation: Buying into the Future “Robot Dream”
A PE of 219 times may seem daunting (with an industry average of 38 times), but why are investors so eager to buy? They are not buying into the company’s current net profit of 591 million yuan in 2025; instead, they are investing in a vision for the future:
- The prospectus suggests that YuShu’s non-recurring profits could decline by 6%-22% in the first half of 2026 due to increasing industry competition.
- The market imagines YuShu mass-producing robots for use in factories and becoming a representative of China’s robotics industry.
The high PE reflects an early investment in this future. However, the greater the potential, the more the current price may be overinflated. If the future does not materialize, today’s high price could turn into a bubble.
III. Retail Investors are Excited but Have Limited Influence
Online discussions are full of hopes for winning shares, but retail investors are not the main players:
- Limited Shares: Only 16% (about 6.47 million shares) of the 40.44 million shares issued are allocated to retail investors, with a win rate of 0.02%, meaning fewer than 13,000 shares available.
- Institutions Hold Most Shares: Institutions like Social Security and DeepSeek have acquired most of the shares, with a lock-up period of up to 36 months. On the first day of trading, only 7.36% (about 29.77 million shares) are available; over 90% of the shares are locked up.
Therefore, despite retail enthusiasm, they are merely spectators, as the actual price movements are determined by institutions with significant shareholdings.
IV. Hidden Concerns Beneath the Bright Numbers: Customers, Costs, and “BRAIN” Challenges
Despite being profitable, YuShu faces three major issues:
1. Heavy Dependence on Research Institutions: In 2025, 73.6% of humanoid robot revenue will come from research and education, with only 9% from industrial applications (most of which are for exhibition purposes, not practical use). This indicates a gap between potential demand and actual market adoption.
2. Faster Price Drops than Cost Reduction: The average price of humanoid robots has dropped from 590,000 yuan in 2023 to 160,000 yuan in 2025, and it is expected to fall further to around 100,000 yuan in Q1 2026. However, costs have only decreased by 15% (from 73,200 yuan to 62,200 yuan). If YuShu enters the industrial market, competitors may drive down prices, and it is uncertain whether it can maintain its current profit margin of around 60%.
3. Lack of Advanced AI: While YuShu’s hardware is robust, it has not yet deployed large-scale autonomous AI models. The 2 billion yuan raised will be used for model development, and DeepSeek (an AI company) is a strategic investor, but the two have not fully integrated yet. The founder’s retention of a remote control design suggests a need for safety redundancy, indicating that AI is not yet fully autonomous.
V. YuShu Cannot Afford to Fail: It’s a “Model Project” for the Entire Industry
With the listing, YuShu is no longer just a startup; it is the first humanoid robot stock on the STAR Market, serving as a benchmark for primary market investors and a target for strategic capital. Its performance directly affects:
- The pricing potential of other upcoming robotics companies.
- Whether industrial capital and supply chain resources will flow into this industry.
- The overall valuation logic of the embodied intelligence sector.
Therefore, all key stakeholders (founders, primary investors, strategic capital, AI companies) do not want YuShu to fail. This IPO has raised the “sunk costs” for the entire industry, as everyone has invested heavily and cannot afford a setback.
Conclusion: After the Hype, Success Depends on Three Key Factors
Whether YuShu can maintain its 61 billion yuan valuation will depend on its financial performance meeting three goals:
1. Continued Focus on Humanoid Robots: The current 51% revenue from humanoid robots must increase to demonstrate a transition from quadruped-focused companies to specialized humanoid platforms.
2. Expansion into Industrial Applications: Moving from research institutions and exhibitions to industrial production, logistics, and hazardous inspections, becoming essential for businesses.
3. Cost Reduction: Reducing costs faster than prices through domestic supply chains and economies of scale to maintain a profit margin.
If these goals are achieved, the 61 billion yuan will just be the starting point; otherwise, the funds invested in the IPO may prove a costly investment.
From now on, Chinese humanoid robots are no longer just concepts; they have a stock code. The future of this industry will be determined by YuShu’s financial performance.