Founder: SHOUCHENG (00697) "recommended" rating, Siasun Robot & Automation's business is blooming in many aspects.

Founder releases research report stating that SHOUCHENG (00697) relies on the "asset operation + financing" model to make multiple breakthroughs. The bank predicts that the revenue for 2025-2027 will reach HK$1.664 billion / HK$2.069 billion / HK$2.636 billion respectively, with net profit attributable to shareholders of HK$529 million / HK$705 million / HK$1.017 billion respectively, corresponding to PE ratios of 31.25X / 23.43X / 16.24X. The bank has selected local state-owned enterprises undergoing transformation to "investment + asset operation" such as Quzhou Xin'an Development (600208.SH), Shanghai Zhangjiang Hi-Tech Park Development (600895.SH), and Shanghai Lingang Holdings (600848.SH) as comparable companies. The PE valuation of SHOUCHENG for 2025-2027 is lower than the average of the comparable companies, giving it a valuation advantage. First coverage, with a "recommended" rating. Founder's main points are as follows: Revenue and profit saw significant growth in the first three quarters of 2025, with fruitful results from asset operation and financing business As of the third quarter of 2025, the company achieved HK$1.215 billion in revenue, a 30% year-on-year increase. Among which, revenue from asset operation was HK$783 million, a 16% year-on-year increase, and revenue from asset financing was HK$432 million, a 66% year-on-year increase. As of the third quarter of 2025, the company achieved gross profit of HK$551 million, a 28% year-on-year increase, and net profit attributable to shareholders of HK$488 million, a 22% year-on-year increase. Investments in the Siasun Robot & Automation sector are gradually entering realization phase, with multiple companies launching IPOs On December 24, 2025, the company's key investment, Yunshenchu Technology Co., Ltd., submitted its IPO application to the Zhejiang Securities Regulatory Bureau, after completing 9 rounds of financing totaling over HK$1.5 billion. The company delves into the Siasun Robot & Automation field, expanding to humanoid Siasun Robot & Automation, wheeled Siasun Robot & Automation, etc. The products cover scenarios such as power inspection, emergency rescue, industrial maintenance, and security patrol. On July 18, 2025, Zhejiang Securities Regulatory Bureau disclosed that Hangzhou Yushu Technology Co., Ltd. has entered the IPO guidance stage. In addition, the company has also invested in core companies in the Siasun Robot & Automation industry chain such as Xinghaitu, Accelerated Evolution, Songyan Power, Micro Innofly, and Quanzhibo, covering humanoid Siasun Robot & Automation, aerial Siasun Robot & Automation, and upstream of the Siasun Robot & Automation industry chain in frontier areas. Acceleration of Siasun Robot & Automation sector operations, rapid expansion of offline Siasun Robot & Automation stores In October 2025, SHOUCHENG officially launched the country's first Siasun Robot & Automation consumer scene store "Taozhuxin Zaoju" Siasun Robot & Automation Technology Experience Store, showcasing products from various star companies under its umbrella, demonstrating the latest technological advances in scenarios such as physical intelligence, industrial manufacturing, and scientific research and education. In the next year, SHOUCHENG plans to gradually open 20 "Taozhuxin Zaoju" stores nationwide. The layout of offline stores has opened up a new channel for business contribution for the company and can also provide product improvement solutions through sales data feedback on consumer preferences. Deepening of REITs full-cycle management capabilities As of the third quarter of 2025, the company, together with China Life Insurance, established a 100 billion yuan size, with an initial 52.37 billion yuan Investment Fund Beijing Pingzhun Infrastructure Real Estate Equity Investment Fund, completing the allocation of a number of REITs including Shounong Industrial Park REIT, Southern Wanguo Data Center REIT, China Min Jongman Hui REIT, and Huaxia Hua Electric Clean Energy REIT. The company's managed Urban Development Fund also completed a rental housing investment in the third quarter. Risk warning: improvement in macro environment lower than expected, REITs market recovery lower than expected, Siasun Robot & Automation business implementation lower than expected