New stock preview | Csg Smart Science & Technology embraces the "A+H" model: is the "optimal solution" under strong profit rebound in the face of income fluctuations?

The A+H listing boom continues. On January 19th, the dual-track industry leader in digital energy and intelligent Siasun Robot & Automation, Csg Smart Science & Technology, submitted an application for listing on the Hong Kong Stock Exchange. Founded in 2002 by the University of Science and Technology of China, Csg Smart Science & Technology focuses on the automation of power distribution and medium-voltage power line carrier communication technology. In 2014, it entered the industrial intelligence field through the acquisition of Yonggan Electromechanical, and established a "digital energy + digital industry" strategy in 2019. By 2024, the company has firmly established its leading position in digital energy and Siasun Robot & Automation businesses. In terms of business structure, Csg Smart Science & Technology's main businesses are digital energy and intelligent Siasun Robot & Automation. The digital energy sector includes products such as primary and secondary fusion circuit breakers, ring network cabinets, feeder terminal units (FTUs), distribution terminal units (DTUs), low-voltage substation and power consumption information collection systems, as well as energy storage systems and solutions. The intelligent Siasun Robot & Automation sector mainly provides products and solutions including industrial robots, stackers, and inspection Siasun Robot & Automation for power grid companies and large industrial customers. In 2011, Csg Smart Science & Technology (300222.SZ) completed its listing on the ChiNext board of the Shenzhen Stock Exchange. Due to a lackluster business growth, the company did not receive much enthusiasm from secondary market investors on the ChiNext board, with its stock price closing at 12.23 yuan on January 22nd, and a total market value of 9.518 billion yuan. Now, as the company officially pushes for a Hong Kong IPO, can Csg Smart Science & Technology write a new growth story on the Hong Kong Stock Exchange and attract the attention of investors? Stagnant Growth in Siasun Robot & Automation Business vs Strong Profit Rebound Csg Smart Science & Technology's business model of "digital energy on the left hand and Siasun Robot & Automation on the right hand" has undoubtedly hit the two major national strategic trends of "new power system construction" and "industrial intelligence". In the field of digital energy, Csg Smart Science & Technology is one of the earliest domestic companies to enter the field of power distribution automation, and its products and solutions have been deployed and applied in the power grids of 31 provincial-level administrative regions in China. According to Frost & Sullivan data, by 2024, Csg Smart Science & Technology ranks second in the primary and secondary fusion circuit breaker market, fifth in the ring network cabinet market, first in the FTU market, and third in the DTU market. In 2024, the shipment of industrial and commercial energy storage systems ranks among the top ten in China, and ranks among the top three in the high energy consumption segment. In terms of industrial intelligence Siasun Robot & Automation, Csg Smart Science & Technology has accumulated more than twenty years of expertise and is one of the few manufacturers with advanced technology and large-scale, multi-scene implementation capabilities in the industry. According to Frost & Sullivan data, from 2020 to 2024, Csg Smart Science & Technology's cumulative revenue from industrial robots ranks first in China, and its cumulative revenue from SRM stackers ranks first in the Chinese lithium battery industry. In recent years, through the integration of AI visual recognition and decision-making algorithms, the company has delivered thousands of projects in new energy, automotive, engineering machinery, and rail transit fields. Despite the company's competitive advantages in both fields, the overall revenue of Csg Smart Science & Technology still shows fluctuating characteristics due to the uneven performance of its business segments. According to the prospectus, from 2023 to September 2025, the company achieved revenues of 3.025 billion, 2.687 billion (a year-on-year decrease of 11.17%), and 1.904 billion (a year-on-year increase of 1.12%). The revenue performance has been volatile. While the "dual-drive" model has not been balanced in performance, with digital energy business acting as the absolute mainstay (accounting for 78.2% of revenue in 2024), while the revenue of the smart Siasun Robot & Automation business has been declining in recent years, with a sharp year-on-year decrease of 42.8% in 2024. This weakens the attractiveness of the "dual-drive" story. However, the profit rebound of the company is relatively strong. From 2023 to September 2025, the company's profits were -171 million, 61.57 million, and 73.48 million, showing a rebound from losses to profits, and a year-on-year growth of 228%. This strong rebound may be attributed to the company's strategic focus on the digital energy business, the divestiture of low-profit/loss-making assets (such as Huaxiao Precision and Shanghai Guanzhi), focusing on intelligent power distribution, energy storage, and high-margin industrial Siasun Robot & Automation sectors, leading to a significant improvement in gross profit margins. During the period, the company's gross profit margins increased year by year, reaching 20.8%, 23.8%, and 24% respectively. Based on the above observations, it is clear that Csg Smart Science & Technology is currently in a strategic transformation period from scale expansion to quality improvement. Although there have been revenue fluctuations, the strong profit rebound to some extent validates the forward-looking and efficient nature of its strategic transformation. Hitting the two major strategic trends, where is the breakthrough point? From a split perspective, the digital energy and industrial Siasun Robot & Automation sectors where Csg Smart Science & Technology operates have vast development space and quality tracks. On one hand, the digital energy sector shows a significant growth momentum under the drive of policy dividends. According to public reports, during the "Thirteenth Five-Year Plan" period, the State Grid Corporation's fixed asset investment is expected to reach 4 trillion yuan, a 40% increase from the "Twelfth Five-Year Plan" period, reaching a historical high, marking a new round of development opportunities for the power industry. According to Frost & Sullivan data, the global digital energy market is expected to reach 1.515 trillion yuan by 2029, with a compound annual growth rate of 8.7% from 2024 to 2029. The growth rate in the next five years is slightly higher than the historical average, indicating that the industry's growth momentum is expected to further strengthen. On the other hand, the industrial Siasun Robot & Automation sector shows a long-term trend of increasing penetration rates driven by factors such as the transformation and upgrading of the manufacturing industry, the integration of artificial intelligence and Siasun Robot & Automation technology. It is expected that by 2029, the market size of the Chinese industrial Siasun Robot & Automation industry will reach 166.3 billion yuan, with a CAGR of 14.6% from 2024 to 2029. During the same period, the global market size is expected to grow to 334.3 billion yuan, with a CAGR of 14.1%. However, despite hitting the two major strategic trends, Csg Smart Science & Technology still faces unavoidable development challenges. Specifically, Siasun Robot & Automation business faces fierce competition in the industry - the business is greatly affected by downstream industry cycles and faces fierce competition from competitors such as Estun Automation, making the growth prospects uncertain. In such a survival environment, the company's business structure has gradually become imbalanced, with the "dual-drive" model becoming dominated by the digital energy business (accounting for 76.7% in the first three quarters of 2025), while the smart Siasun Robot & Automation business continues to shrink (revenues were halved in 2024), weakening the attractiveness of the company's "technology company" narrative. Secondly, customer concentration is increasing, with reliance on a single major customer. In the first three quarters of 2025, the revenue from the top five customers accounted for 51.6%, with the largest customer accounting for 36.0%. The company's profitability is increasingly dependent on orders from top electric grid customers, which obviously weakens the company's bargaining power and leads to significant fluctuations in performance with the pace of electric grid investments. In the face of these development challenges, the move to the Hong Kong stock market has become a key opportunity for Csg Smart Science & Technology to confront these challenges. In the prospectus, Csg Smart Science & Technology stated that the net proceeds from the IPO will mainly be used to: consolidate the technological advantages in the fields of digital energy and intelligent Siasun Robot & Automation, deepen AI empowerment, broaden and deepen the adaptability to more application scenarios; strengthen global sales network and global production layout, focusing on phased global layout, further enhance supply chain capabilities and operational efficiency; and research and develop key equipment for AIDC scenarios and devices integrating quantum technology and grid fusion applications. It can be seen that the company's new raised capital will mainly be used in high-growth areas, and as the positive feedback effects of this layout gradually unfold, Csg Smart Science & Technology will also have sufficient momentum to reshape market confidence. In conclusion, Csg Smart Science & Technology is in a high-quality track with strong policy support and clear market space, and with its leading position in the power grid sector, it has a solid foundation. However, whether its investment value can be fully realized depends on its ability to convert the "industry dividends" of grid investment into solid cash flow and steady financial statements, repair financial health, and truly activate the growth potential of the "intelligent Siasun Robot & Automation" as the second growth driver, proving its diversification capabilities and growth potential.