From Massive Loss of 800 Million to Turning Profitable! Estun Industrial Robot Shipments Reach Peak, Why Is It Trading Below IPO Price in Hong Kong?

(Source: Jian Yong Talks about Intelligence)

Text / Yang Jian Yong

Estun’s first day of listing in Hong Kong saw a 16% decline, experiencing a break in its share price. Its current market value is HKD 12.57 billion (approximately RMB 11 billion), representing a 47% discount compared to its domestic market valuation of RMB 20.9 billion.

Due to severe homogenization and intense competition in the industrial robot market, along with weak core profitability, market concerns remain about the prospects of leading industrial robot companies.

Especially in recent years, industry internal competition and downstream demand impacts have led to industry overcompetition and falling product prices, causing Estun’s business to remain sluggish. In 2024, not only did revenue decline, but losses reached as high as RMB 810 million, the largest since its listing.

Fortunately, demand in the industrial automation market has begun to recover, showing steady growth in industrial robot demand. According to Rui Industrial data, China’s industrial robot shipments are expected to surpass 300,000 units in 2025, a year-on-year increase of over 13%. Meanwhile, with the acceleration of domestic substitution, the market share of local industrial robots continues to grow.

In 2018, the domestic market share of industrial robots was 29%, which increased to 54% by 2025, now accounting for half of the market. This reflects the increasing competitiveness of domestic companies in the robot industry. Conversely, the market share of foreign brands has decreased from over 71% to 46%, reshaping the competitive landscape and demonstrating that domestic manufacturers are firmly securing advantageous positions.

Major companies are increasingly focusing on autonomous control and customized product supply, driving the rapid domestic substitution of industrial robots. The landscape, once dominated by foreign brands, is now changing. Estun and Inovance Technology have performed strongly in this shift.

Against this backdrop, Estun showed a robust recovery in 2025, successfully reversing its downturn and making industrial robots the brand with the highest domestic shipment volume.

Estun’s market share in China’s industrial robots continues to grow. According to MIR Rui Industrial data, it has become the leading brand in domestic shipments. In 2025, total industrial robot shipments exceeded 30,000 units, becoming a core driver of growth in China’s industrial robot market, promoting higher domestic substitution rates, and transforming from a follower to a key market leader.

Overall, Estun has deeply benefited from the recovery in industrial robot demand and the acceleration of domestic substitution. Its performance has shifted from the sluggishness of the past two years to a growth trajectory, returning to profitability and leaving industry overcompetition behind to pursue high-quality growth.

In the first three quarters of 2025, Estun’s revenue reached RMB 3.8 billion, a year-on-year increase of 12.97%; net profit was RMB 29 million, up 143%. The full-year net profit for 2025 is projected to be between RMB 35 million and 50 million, turning around from a loss of RMB 810 million last year.

Finally, as manufacturing continues to increase digitalization, automation, and intelligence during production, the deployment scale of industrial robots is expanding, and demand for automation technology is rising. China has remained the world’s largest industrial robot market for over a decade.

As China’s manufacturing industry gradually advances toward high-end development, the momentum of domestic substitution remains strong, making autonomous control of high-end manufacturing equipment particularly critical. The trend of domestic substitution is gaining momentum, creating more market opportunities for leading domestic robot companies. From market performance, Estun and Inovance have entered the top tier of global industrial robot players, gradually breaking the dominance of international brands in high-end applications, reshaping the market landscape.

Under the background of domestic substitution, industrial robots remain a promising sector. Leading companies, leveraging cost advantages and rapid response capabilities, are accelerating their share in mid-to-high-end markets. They are especially prominent in emerging fields such as new energy vehicles and 3C electronics, and are expected to continue releasing growth potential through the dividends of domestic substitution.

Yang Jian Yong, Forbes China contributor, opinions expressed are personal. Focused on in-depth analysis of cutting-edge technologies such as AI large models, artificial intelligence, IoT, cloud computing, and smart hardware.