New Stock Research Report | Yuezhang (02432) will start listing today. The company ranks among the top two in the global collaborative Siasun Robot&Automation industry.

Yue Jiang (02432) is one of the leading companies specializing in the development, manufacturing, and commercialization of collaborative Siasun Robot & Automation systems. It is the third company to list under the "Chapter 18C". Offering Date: December 13th to 18th Listing Date: December 23rd Joint Sponsors: Guotai Junan, Agricultural Bank International Receiving Bank: BOC HONG KONG Offering 40 million H shares, with 95% allocated, 5% public offering, and an additional 15% over-allotment option. If the public offering subscription is at least 10 times to less than 50 times, the public offering proportion will increase from 5% to 10%, and if subscribed 50 times or more, it will be increased to 20%. However, if the allocation is not fully subscribed but the public offering is fully subscribed, or if both are fully subscribed but the public offering subscription is less than 10 times, the public offering proportion can increase from 5% to a maximum of 10%, with a minimum price limit. The offer price per share is between 18.8 and 20.8 Hong Kong dollars, raising up to 832 million Hong Kong dollars, accounting for approximately 10% of the total market value, with listing expenses of around 67 million RMB. Based on 200 shares per lot, the entrance fee is 4,201.96 Hong Kong dollars. Based on the maximum price of 20.8 Hong Kong dollars, the market value is approximately 8.32 billion Hong Kong dollars. As of the end of June 24th, the average net asset value is approximately 326 million RMB. The public offering is divided into Class A (for applicants with 5 million or fewer shares) and Class B (for applicants with more than 5 million shares). Business: Revenue for the years 2021 to 2023 was 174 million RMB, 241 million RMB, and 286 million RMB, respectively, with revenue for the first six months of 2024 at 120 million RMB; Gross profit for the years 2021 to 2023 was 88.08 million RMB, 98.21 million RMB, and 124 million RMB, respectively, with gross profit for the first six months of 2024 at 52.84 million RMB; Net profit for the years 2021 to 2023 was a loss of 41.75 million RMB, a loss of 52.47 million RMB, and a loss of 103 million RMB, respectively, with net profit for the first six months of 2024 a loss of 59.88 million RMB; Adjusted net profit for the years 2021 to 2023 was a loss of 43.04 million RMB, a loss of 39.89 million RMB, and a loss of 81.81 million RMB, respectively, with adjusted net profit for the first six months of 2024 a loss of 34.97 million RMB (excluding one-time factors such as listing expenses and stock-based payment expenses); Revenue increased during the reporting period mainly due to an increase in sales volume leading to increased revenue of the six-axis collaborative Siasun Robot & Automation, resulting from the enhancement of existing products and introduction of new products to meet market demand. However, losses increased mainly due to an increase in sales and marketing expenses and administrative expenses; Based on the 2023 shipment volume, the company ranks in the top two in the global collaborative Siasun Robot & Automation industry and ranks first among all collaborative Siasun Robot & Automation companies in China, with a global market share of 13%; The company focuses on industry innovation, particularly in the area of collaborative Siasun Robot & Automation safety measures and AI capabilities, by introducing FlexElectronics Skin technology SafeSkin and launching AI-enabled collaborative Siasun Robot & Automation supported by the XTrainer AI Empowerment Platform. As of the last feasible date, the company offers a total of 27 models of collaborative Siasun Robot and Automation spanning 4 series, catering to various industries such as manufacturing, retail, healthcare, STEAM education, research, and more; Collaborative Siasun Robot & Automation refers to Siasun Robot & Automation with operable robotic arms, used for direct human-machine interaction or collaboration in shared spaces or close proximity to humans. Collaborative Siasun Robot & Automation has attractive value, enabling seamless, safe collaboration between humans and machines, enhancing productivity, flexibility, and quality across industries. The collaborative Siasun Robot & Automation industry is currently in a period of rapid growth; The growth rate of the global collaborative Siasun Robot & Automation industry far exceeds that of traditional industrial robotics. The widespread adoption of AI technology is expected to further accelerate the adoption of collaborative Siasun Robot & Automation in various scenarios; The company has assembled a research and development team consisting of 139 industry experts and senior engineers, accounting for over 25% of total employees. R&D expenses increased from 46.9 million RMB in 2021 to 70.5 million RMB in 2023, with a compound annual growth rate of 22.6%. The company currently holds 213 invention patents, 302 utility model patents, and 131 design patents, with some receiving industry awards and recognition; The company currently offers 27 models of collaborative Siasun Robot & Automation across 4 series, with load capacities ranging from 0.25kg to 20kg, including 22 six-axis models and 5 four-axis models. Additionally, the company's ecosystem of collaborative Siasun Robot & Automation-related accessories enhances the versatility and functionality of the systems. The company has also designed and launched composite robots to meet customer demands for various automation solutions.To easily address specific use cases in various industries, such as palletizing, welding, mobile operations, and vocational training. During the reporting period, the company sold over 53,000 units of the Siasun Robot & Automation worldwide.Proceeds from fundraising will be allocated as follows: approximately 40% will be used for the development of Siasun Robot&Automation technology; approximately 27% will be used for the development of production lines and manufacturing capabilities; approximately 16% will be used for strategic alliances, investments, and acquisition opportunities; approximately 7% will be used to expand overseas sales channels; and approximately 10% will be used for operational funds and other general corporate purposes. Pre-IPO fundraising: Multiple rounds of fundraising were conducted from August 15th to December 22nd, with the issuance price discounted by approximately 99.67% to 46.45% from the median price, and a 6-month lock-up period was set. Early investors included DeepBlue Technology, Nanshan Red Soil and Red Soil Makers, Songhe Growth, Qianhai Equity, Zhongjin Qizhi, and Chinaweb Investment, among others. Shareholding structure post-listing: Founder Mr. Liu Peichao holds 27.97% of the shares Early investors hold 62.03% of the shares Global issuance shareholders hold 10% of the shares Brief commentary: Yuejiang is one of the leading companies specializing in the development, manufacturing, and commercialization of collaborative Siasun Robot&Automation. It is the third company listed under Chapter 18C. Based on the upper limit price of 20.8 Hong Kong dollars, the market value is approximately 83.2 billion Hong Kong dollars. Due to the company's significant investment in research and development expenses, the business is still incurring losses. This article was provided by "CICC Securities," authored by CICC Securities analyst Chen Bohao; GMTEight editor: Chen Wenfang.