Deep Robotics: Power & Fire Safety Deployment Accelerating, Industrial Scenes Still in Pilot Phase

Overview

This research report is Nomura Securities' survey minutes on advanced manufacturing enterprises in China, focusing on summarizing the operational status and industry views of quadruped robotics manufacturer 'Deep Robotics' (DEEP Robotics). The report points out that Deep Robotics has established substantial traction in power inspection and fire rescue areas, but remains limited by price and performance bottlenecks in broader industrial scenes. Meanwhile, the report updates the valuation and rating for supply chain target Tuopu Group (601689.SS), maintaining a neutral view, believing its core business growth will slow and human-like robot business scaling contribution remains uncertain.

Core views

Business Progress and Scenario Deployment: Power and fire safety are the currently fastest-growing vertical sectors. Management stated that in the deployment at a certain substation in Dongguan, the robots use binocular cameras combined with acoustic and thermal sensing to achieve about 8.5 hours of daily inspection, with recognition accuracy exceeding 95%. In addition, fire and patrol units are being promoted in provinces such as Hunan, Shanxi, and Henan, and are landing in overseas parks and warehouse projects in Singapore and North America. Industrial Scenarios Still Early Stage: Despite outstanding performance in power and fire safety, widespread industrial applications remain in an exploratory pilot stage. The main constraints remain price and performance. External industry surveys show that robot battery life, repositioning accuracy, multi-layer navigation, and stability in dust, humidity, or extreme temperatures are not yet fully resolved. As substation digitalization progresses, 'self-sensing' intelligent instrument solutions may gradually erode traditional inspection market opportunities. Therefore, the report considers power and fire safety credible near-term anchors, but large-scale regular industrial adoption still requires further cost reduction and technical breakthroughs. Tuopu Group Valuation and Rating: Nomura maintains Neutral (Neutral) rating on Tuopu Group (601689.SS), target price 55 RMB. Institutions hold a cautious view on the sustainability and scale of Tuopu's contribution in the humanoid robot field and expect core business growth to slow down in 2026 due to lack of scale advantages. Valuation uses P/E method, based on 34x P/E of 2026 expected EPS (1.5 standard deviations higher than historical average of 21x), implying 2025-2028 earnings CAGR of 11%.

Analysis framework

Nomura adopted a method combining field research and external industry cross-validation. First, obtaining specific operational data (inspection duration, accuracy, etc.) from management at specific scenarios (e.g., Dongguan substation) through direct communication to verify the authenticity of technology implementation. Second, introducing external industry survey data to assess common industry pain points (e.g., price, environmental adaptability, substitution technology threats) from a third-party perspective, thereby judging the certainty of long-term market space. For Tuopu Group, relative valuation method (P/E Band) is used, combining historical valuation ranges and future earnings forecasts to assess whether current stock price has fully reflected humanoid robot expectations.

Methodology notes

• Valuation MethodPE/PEG valuation

  P/E Valuation Method

  The research report uses P/E to value Tuopu Group, setting the target price at 34x 2026 expected EPS. This method compares the company's current valuation with its historical average and future earnings growth rate to determine if the stock price is overvalued or undervalued.

• Industry/Industrial Analysis FrameworkOthers

  Technology Implementation Maturity and Substitution Effect Analysis

  The research report analyzes maturity differences of robotics technology in different scenarios (Power/Fire Safety vs General Industry), and points out that as infrastructure digitalization progresses (e.g., smart sensor popularity), traditional robot inspection may face risks of being substituted by lower-cost 'self-sensing' solutions. This reminds investors to pay attention to market space erosion brought by technology iteration.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Ningbo Tuopu Group (601689.SS)

  Potential beneficiary in humanoid robot supply chain, but report holds a cautious attitude

  Strengths

  Expected profit CAGR reaches 11% for 2025-2028, possessing a certain growth foundation

  Weaknesses

  Core business growth expected to slow in 2026, lack scale advantage; sustainability and scale of humanoid robot business contribution questioned

  Comparison

  Compared to pure robot body manufacturers, as a component supplier, Tuopu's performance elasticity is constrained by downstream OEM mass production progress

  Risks

  Key customer shipment volume below expectations; Humanoid robot enterprise mass production progress slows

Key data

• Tuopu Group Target Price55 CNYBased on 34x P/E of 2026 Expected EPS
• Tuopu Group Current RatingNeutral (Neutral)Maintained Rating
• Deep Robotics Dongguan Substation Inspection Accuracy>95%Using Binocular Camera + Acoustic + Temperature Sensing
• Deep Robotics Daily Average Inspection DurationApproximately 8.5 HoursDongguan Substation Deployment Data
• Tuopu Group Profit Growth Forecast11%2025-2028 Expected CAGR

Impact & implications

For Deep Robotics Technology, short term should focus on high-certainty scenarios such as power and fire safety to accumulate cash flow and brand effect; long term, breakthrough cost and multi-environment adaptability bottlenecks are needed to open up general industrial markets. For Tuopu Group, the market's optimistic expectations for its humanoid robot business may have been partially reflected in the stock price; if subsequent mass production progress falls short of expectations or core auto-parts business growth slows significantly, the stock price faces correction pressure. Investors should focus on the actual release rhythm of the humanoid robot industry chain, avoiding excessive hype of concepts.

Risks

• China EV demand below expectations
• Humanoid robot enterprise mass production progress slows
• Key customer shipment volume weak
• Robot technology stability in extreme environments not fully resolved
• Self-sensing intelligent instruments substituting/eroding traditional inspection market

What to watch

• Deep Robotics Technology cost control progress in industrial vertical sectors
• Overall mass production schedule of humanoid robot industry
• Tuopu Group core auto parts business growth rate changes
• Penetration rate of intelligent instruments during substation digitalization process