New Stock Preview | Net profit surges 5 times, stock price up 134% this year. Shuanglin Co., Ltd. From HDM leader to Siasun Robot & Automation newcomer.

Since 2025, humanoid Siasun Robot&Automation has always been an important theme in the A-share technology track. Shuanglin Co., Ltd. is a super hot stock highly sought after by the market. As of the close on September 25, the company's total market value was approximately 26.3 billion yuan, with a year-on-year increase of about 134%. On September 24, Shuanglin Co., Ltd. formally submitted an application for listing on the main board of the Hong Kong Stock Exchange, taking a key step in its international capital layout. This IPO is jointly sponsored by CITIC SEC and GF SEC, signaling that this automotive parts supplier, which has been deeply rooted in the A-share market for many years, is trying to further expand its financing channels, enhance its international influence, and accelerate its strategic transformation in the field of emerging technologies. Significant increase in net profit, optimized cash flow structure Shuanglin Co., Ltd.'s main business is the research and development, manufacturing, and sales of intelligent automotive drivetrain components, interior and exterior trim components, precision components, new energy power systems, as well as related components in the humanoid Siasun Robot&Automation and low-altitude economic sectors. The company's main customers include domestic and foreign vehicle manufacturers (such as BYD Company Limited, SAIC GM Wuling, Nissan, etc.) and automotive parts Tier-1 suppliers (such as Faurecia, Autoliv, etc.). According to Frost & Sullivan data, based on revenues in 2024, the company is the second-largest global supplier of automotive seat horizontal drive systems ("HDM"), with a global market share of 15.1%, and the largest supplier of automotive seat HDM in China with a market share of 32.8%. The company is the ninth-largest global supplier of wheel hub bearings, with a global market share of 2.2%, and the third-largest supplier of wheel hub bearings in China with a market share of 6.9%. The company is the largest manufacturer of small-sized new energy vehicle electric drives globally, with market shares of 6.4% and 9.5% in the global and Chinese markets, respectively. Looking at the financial data disclosed in the prospectus, Shuanglin Co., Ltd. has demonstrated stable revenue basis and significant profit growth trends over the past three full fiscal years (2022 to 2024) and the most recent period (2024 and the first half of 2025). In terms of revenue, the company achieved revenues of approximately 4.185 billion yuan, 4.139 billion yuan, and 4.91 billion yuan in 2022, 2023, and 2024, respectively. Although there was a slight decrease of 1.11% in revenue in 2023 compared to the previous year, mainly affected by industry cyclicality and some customer demand adjustments, there was a subsequent increase of 18.65% in 2024, reflecting the business resilience and market demand recovery. It is worth noting that revenue in the first half of 2025 has reached 2.525 billion yuan, an increase of about 20% from 2.103 billion yuan in the same period of 2024, indicating strong growth momentum for the full year. The significant increase in profitability is the highlight of Shuanglin Co., Ltd. in its attempt to list on the Hong Kong Stock Exchange this time. From 2022 to 2024, the company's net profit attributable to shareholders jumped from 76 million yuan to 82 million yuan, and then achieved a substantial increase to 498 million yuan in 2024, a year-on-year growth rate of as high as 507.32%. This explosive growth was mainly due to the company's continued optimization of cost control measures, upgrading of product structure, and release of economies of scale. The gross profit margin also showed a steady upward trend, increasing from 15.7% in 2022 to 16.5% in 2023, and further to 17.3% in 2024. The gross profit margin in the first half of 2025 reached 20.2% (estimated based on mid-term data), indicating an increase in the proportion of high value-added products and continuous improvement in operational efficiency. Upon closer examination of the financial reports, the core of the company's profit surge in 2024 was a one-time "other income" item. This item reversed from a loss of 5.93 million yuan in 2023 to a gain of 157 million yuan in 2024. This was undoubtedly the main contributor to the profit surge in 2024. According to the company's public information, this mainly came from the profit generated from the sale of loss-making assets (DSI gearbox assets). This divestiture helped the company shed historical burdens and stop bleeding. Excluding the impact of this one-time income, we can see the true extent of improvement in the core operational business. The adjusted operating profit in 2024 was approximately 540 million - 157 million = 383 million yuan. Compared to 153 million yuan in 2023, the core operating profit still achieved a substantial increase of about 150%. This indicates that even when excluding the impact of asset sales, the company's profit capabilities and operational efficiency in its core business have been significantly enhanced. The cash flow statement reveals the company's healthy cash-generating ability. From 2022 to 2024, the net cash flow from operating activities was 443 million yuan, 378 million yuan, and 701 million yuan, respectively, with a significant increase of 85.5% in 2024, aligning with the trend of net profit growth, indicating a high quality of profits. In the years 2022-2023, the company's "net cash ratio" (operating cash flow/net profit) exceeded 100%, even surpassing 400%, indicating a very high cash conversion rate for core profits. The cash flow from investing activities shows that the company continues to invest in capacity expansion and technological upgrades, although investment expenditure narrowed in 2024, it expanded again in the first half of 2025 due to possible new project investments. Cash flow from financing activities mainly consisted of loan repayments and dividend payments, reflecting an optimization of the financial structure. Cash and cash equivalents increased from 333 million yuan at the end of 2022 to 511 million yuan at the end of 2024, indicating sufficient financial reserves. By analyzing the cash flow statement, we can clearly see that Shuanglin Co., Ltd. has completed a complete cycle: "strategic contraction and financial optimization (2022-2023) performance release and cash accumulation (2024) actively target new tracks (from 2025 onwards)". From "traditional components" to "intelligent + new energy" drives Can humanoid Siasun Robot&Automation experience explosive growth? Shuanglin Co., Ltd.'s core competitiveness is built on a diversified and synergistic product matrix, mainly divided into four major business segments: intelligent drivetrain components, interior and exterior trim components, new energy power systems, and wheel hub bearings. Intelligent drivetrain components serve as the company's absolute main business, with revenue accounting for a stable 55%-60%, serving as the backbone. After a slight decline in revenue in 2023, it rebounded strongly in 2024, with a year-on-year growth of 24.9%, returning to a growth trajectory. In the first half of 2025, revenue increased by 21.9% year-on-year, with a growth rate higher than the overall revenue, indicating a further strengthening of its core position. The new energy power system is the company's most eye-catching growth engine, with its revenue share rising from 7.2% in 2021 to 17.4% in the first half of 2025, making it the second-largest business segment for the company. It continued to achieve a high-speed growth of 93.8% in the first half of 2025. Wheel hub bearings, as a traditional core business, have decreased in importance relative to other segments. Through changes in revenue structure, we can clearly see Shuanglin Co., Ltd.'s strategic transformation path. Firstly, optimizing product structure. The company's revenue no longer overly relies on traditional components like wheel hub bearings. High value-added, high-growth "intelligent drivetrain components" and "new energy power systems" have combined share increased from 67.5% in 2021 to 76.3% in the first half of 2025. Secondly, seizing the opportunity in new energy. The rise of the new energy power system business demonstrates the company's successful strategic focus. It not only brought a significant increase in revenue but also greatly enhanced market expectations for the company's valuation. Thirdly, dual drive of "intelligence" and "electrification". The intelligent drivetrain components, represented by HDM, benefit from the trend of increased complexity and intelligence in automotive seat functions. The new energy power system directly benefits from the increasing penetration rate of new energy vehicles. These two major trends are the core directions of current automotive industry transformation, and Shuanglin Co., Ltd.'s business layout is highly aligned with them. The humanoid Siasun Robot&Automation is a major reason why Shuanglin Co., Ltd. has been favored by investors, what are its advantages in this field? Shuanglin Co., Ltd.'s core competitive advantage lies in successfully transferring the precision drive technology of automotive seat horizontal drive systems (HDM) to the Siasun Robot&Automation joints. The precision manufacturing processes required for HDM products, such as worm gears and worm screws, are derived from the planetary roller screw technology required for Siasun Robot&Automation joints. The company has built a pilot production line for reverse planetary roller screw with an annual capacity of 12,000 sets, and the product strength has been recognized by customers. However, as of June 2025, the Siasun Robot&Automation business has not generated substantial revenue. According to industry norms, it takes 6-12 months to move from sample verification to mass production, with rigorous testing for reliability, longevity, etc. The company expects that it may achieve small-scale revenue in 2026, and in the short term, performance still relies on the automotive main business. In addition, the company's R&D expenses reached 169 million yuan in 2024, and continuous investment is needed for the new Siasun Robot&Automation business. If the commercialization progress lags behind, high R&D expenditures may erode profits. In the second quarter of 2025, the company already showed the phenomenon of "increased revenue but not increased profit", with a 25.08% year-on-year decline in net profit, reflecting financial pressure during the transformation period. The Siasun Robot&Automation market does show explosive potential (the Chinese market size is expected to increase from 22 billion yuan in 2024 to 243 billion yuan in 2029), but the current industry is still in the early stage of "demonstration applications leading, large-scale commercialization following".The value of Shuanglin Co., Ltd. lies in: in the short term, focusing on the stability of performance supported by the automotive base, drivetrain and new energy business; in the medium term, looking at the sample conversion rate, and the progress of orders landing cooperation projects with automakers are key catalysts; in the long term, looking at the ability for technological iteration, and whether the company can continue to lead in core indicators such as screw accuracy, longevity, etc.