New Stock Analysis | Steady Growth in Performance, Seizing the Golden Track, What is Shenzhen Woer Heat-shrinkable Material's Intention of Sprinting A+H?

As one of the world's largest manufacturers of heat shrink materials and communication cable products, Shenzhen Woer Heat-shrinkable Material (002130.SZ) is about to embark on a new journey in the Hong Kong stock market. On January 27, Shenzhen Woer Heat-shrinkable Material Service Co., Ltd. (hereinafter referred to as "Shenzhen Woer Heat-shrinkable Material") disclosed its prospectus after the hearing on the Hong Kong Stock Exchange, planning to IPO on the Hong Kong main board. The company submitted applications on June 17, 2025, and January 26, 2026. With its formal approval in the Hong Kong Stock Exchange hearing, Shenzhen Woer Heat-shrinkable Material is getting closer to its listing on the Hong Kong stock market. According to GMTEight, Shenzhen Woer Heat-shrinkable Material was founded in 1998, specializing in heat shrink materials. In 2012, the company acquired Leting Zhilian 72 wire and cable track, expanding its business scope. By 2018, the company strategically positioned itself in the wind power equipment and operation field, officially expanding into the new energy field. Up to now, Shenzhen Woer Heat-shrinkable Material has formed a dual-core business structure of "new material series products + new energy wind power generation/photovoltaic power generation". According to Frost & Sullivan data, based on 2024 global revenue, Shenzhen Woer Heat-shrinkable Material ranks first in the global heat shrink material industry with a 20.6% global market share; ranks third in the global telecommunications cable manufacturers (including high-speed copper cable) with a 12.7% global market share; and is also the largest high-speed copper cable manufacturer in China with a 24.2% global market share. Additionally, the company ranks fifth in the Chinese automotive core charging products industry and first in the Chinese cable accessories industry. In 2007, Shenzhen Woer Heat-shrinkable Material successfully went public on the Shenzhen Stock Exchange. As of January 28, 2026, its total market value was approximately 36.94 billion yuan. With this "hidden champion" officially passing the Hong Kong Stock Exchange hearing, the "A+H" camp is expected to welcome a "strong player". Double-drive, steady performance growth Through its product structure, by successfully occupying the "AI + new energy" golden tracks, Shenzhen Woer Heat-shrinkable Material has successfully built its core business in electronic communication (AI computing power) and alternative energy power transmission (new energy). Specifically, Shenzhen Woer Heat-shrinkable Material can provide electronic materials products and communication cable products, widely used in IT infrastructure, including computing centers, new energy vehicles, AUTOMATED SYS, Siasun Robot & Automation, and smart consumer electronics; on the other hand, it can provide secure and reliable power transmission products for new energy vehicles, power grids and stations, and rail transit, such as charging guns and charging ports, onboard charging accessories, nuclear-grade heat shrink cable accessories, high-voltage cable accessories, cold and heat shrink cable accessories, and detachable connectors. Both sectors in which the company operates are high-potential growth tracks. With a dual-drive approach, Shenzhen Woer Heat-shrinkable Material's performance demonstrates steady growth and solid profitability traits. According to the prospectus, from 2022 to 2025, the company achieved revenues of 5.337 billion yuan, 5.719 billion yuan, and 6.92 billion yuan, respectively, showing annual growth. In addition, the gross profit and net profit of the company have continued to grow, with gross profits of 1.612 billion yuan, 1.789 billion yuan, and 2.1 billion yuan, and net profits of 660 million yuan, 758 million yuan, and 921 million yuan, respectively. While these key financial indicators have increased, Shenzhen Woer Heat-shrinkable Material's profitability has also remained at a stable level with gross profit margins of 30.2%, 31.3%, and 30.5% during the period. As of the first nine months of 2025, Shenzhen Woer Heat-shrinkable Material achieved revenues of 6.077 billion yuan, a year-on-year increase of 26.12%; gross profit of 1.878 billion yuan, a year-on-year increase of 25.63%; and net profit of 883 million yuan, a year-on-year increase of 24.54%. However, despite the company's overall stability, its indirect dependence on a single large customer is a hidden risk for Shenzhen Woer Heat-shrinkable Material. During the reporting period, the sales revenue from the company's top five customers accounted for 12.6%, 11.5%, 12.7%, and 19.3% of total revenue, respectively. Although the customer concentration is not high, the demand ultimately relies on the capital expenditure cycle of a few AI giants due to the high-speed copper cable business being supplied indirectly to giants like NVIDIA through connector manufacturers such as Amphenol, which may lead to fluctuations in performance. Positioning in the golden track, expanding the leading advantage is still key? With strong policy support and technological revolution driving the development, the construction of AI computing power and global energy transformation are undoubtedly the most certain and prosperous tracks currently. This also provides significant development space for the two sub-tracks where Shenzhen Woer Heat-shrinkable Material operates. On one hand, the AI era's explosive demand for computing power makes high-speed interconnection with high-speed copper cables a core necessity for data centers. From 2020 to 2024, the global telecommunications cable industry market size (by revenue) increased from 10.5 billion yuan to 13.4 billion yuan, with a compound annual growth rate of 6.1%, and is expected to reach 17.7 billion yuan by 2029, with a compound annual growth rate of 5.9% from 2025 onwards. High-speed copper cables are used for interconnecting AI servers within and between AI power centers, and the market growth potential is huge. At the same time, driven by the accelerated development of industrial automation and the growth in demand for consumer electronics products, it is expected that the consumer and industrial application cables will continue to grow steadily. Other communication cable applications, mainly using copper cables for traditional data centers with lower transmission speeds, are expected to gradually decrease. On the other hand, the global energy transformation, as an irreversible epochal proposition, is continuously driving the popularization of electric vehicles and the upgrading of fast charging technology. As disclosed in the prospectus, driven by the increasing popularity of new energy vehicles and the expansion of charging infrastructure, the Chinese charging gun market is experiencing rapid growth. By the end of 2024, China had installed over 1.6 million DC charging guns. Looking ahead, the Chinese DC charging infrastructure is expected to further expand. By 2029, the number of public DC charging piles in China is expected to reach 5 million units, with a compound annual growth rate of 23.3% from 2025. With the continuous rise in demand for new energy vehicles, the demand for more efficient, safe, and intelligent charging guns is increasing. However, it is important to note that the market for electronic communication and power transmission products is developing rapidly and is highly competitive, with many potential applications still under development. Therefore, despite Shenzhen Woer Heat-shrinkable Material's market-leading high-speed data and power transmission technology, the company still faces competition from companies developing high-speed data communication and power transmission applications. According to Frost & Sullivan data, the telecommunications cable industry where Shenzhen Woer Heat-shrinkable Material operates is highly competitive and fragmented, with over 100 global market participants. In addition, competition in the global and Chinese heat shrink material industry is also intense, with over 800 and over 300 participants globally and in China, respectively. The market for core charging products for new energy vehicles is highly fragmented, with over 300 participants operating in the Chinese market. The global cable accessories market is also highly scattered, with over 500 companies worldwide. Therefore, we can see that even though the company is a leader in its segment, Shenzhen Woer Heat-shrinkable Material urgently needs capital assistance to seize the window of opportunity and expand its leading advantage. It is reported that the proceeds from this fundraising will mainly be used by Shenzhen Woer Heat-shrinkable Material for three main purposes. Firstly, business development and strategic implementation: focusing on core businesses such as electronic communication (such as high-speed copper cables) and new energy power transmission, for product development, capacity expansion, and delivery efficiency improvement to strengthen mass production capacity. Secondly, increasing research and development investment: continuous investment in advanced technology research and development such as high molecular radiation modification, high-speed data communication, and new energy high-voltage components to consolidate technological barriers. And finally, optimizing global production layout: promoting the construction of overseas production bases (such as expanding production in Vietnam), improving domestic production capacity, and enhancing global delivery capabilities. In summary, Shenzhen Woer Heat-shrinkable Material's listing in Hong Kong this time is clearly a strategic move to "prepare enough supplies" for its expansion in the golden tracks and seek internationalization advancement. Its success will directly affect its ability to convert its existing technological lead and market share advantage into a long-term, stable moat in the competition between AI and new energy. Investing in Shenzhen Woer Heat-shrinkable Material essentially means investing in the "AI computing infrastructure" and "new energy vehicle infrastructure" trends. The company has established a significant leadership position and technological barriers in these two tracks, and is poised to directly benefit from the industry's explosive growth, with a clear growth path. The main risks of investment mainly come from the possibility of technological disruption and industry cycle fluctuations.