Orient Securities Maintains Buy Rating on Rongtai as Robot Business Advances

In a research note, Orient Securities said foreign-exchange losses and other factors weighed on Rongtai Co.’s profit growth, while the company’s robotics business is advancing in an orderly manner. Rongtai reported attributable net profit of 122 million yuan for the first three quarters, down 17.5% year over year. Third-quarter attributable net profit was 34 million yuan, down 31.8% from a year earlier and 20.3% sequentially. Despite the near-term earnings pressure, the brokerage maintained its “Buy” rating on the stock. It pointed to the orderly progress of the robot-related business as a longer-term positive and signaled that the profit decline—driven partly by currency effects—does not alter its constructive view on the company’s strategic direction. The note frames the robot business as a key swing factor for Rongtai’s medium-term outlook.