New Stock Preview | Guangzhou Shiyuan Electronic Technology: Behind the Global Display Leader's Hong Kong "A+H" Listing, Growth and Hidden Risks Coexist

Under the joint promotion of the global digital transformation and the wave of artificial intelligence, the integration of intelligent hardware and control core technology has become the high ground that technology companies are competing for. Recently, Guangzhou Shiyuan Electronic Technology Co., Ltd. (referred to as "Guangzhou Shiyuan Electronic Technology"), as a leader in the field of intelligent control in China, after being listed on the Shenzhen Stock Exchange for many years, officially submitted an application for listing to the Hong Kong Stock Exchange, aiming to start a new journey of "A+H" dual listing. From the prospectus disclosed by Guangzhou Shiyuan Electronic Technology, the company owns three globally or nationally leading businesses: liquid crystal display main control boards, educational interactive smart boards, and conference interactive smart boards. It is attempting to break through the growth "ceiling" by empowering AI and extending scenarios. However, behind the company's impressive industry position, fluctuations in raw material costs, inventory pressure, and uncertainty in overseas trade policies have added challenges to its future performance in the capital market. From educational smart boards to intelligent control platforms, how will Shiyuan Electronics open up a second growth curve? It is understood that Guangzhou Shiyuan Electronic Technology originally started in the liquid crystal display main control board business, where it has the deepest technological accumulation. According to Frost & Sullivan data, by 2025, the company's global market share of liquid crystal display main control boards will reach 24.4%, ranking first globally, with nine of the top ten global TV brands using its main control board products. After establishing a foundation in display technology, the company gradually extended downstream applications, launching the 'HiClass' brand in 2009 to enter the education digitalization market. Subsequently, it launched the 'MAXHUB' brand to enter the enterprise conference market, leading the company to transition from a behind-the-scenes supplier to a brand enterprise facing end-users. According to Frost & Sullivan data, by 2025, HiClass educational interactive smart board's global market share will reach 17%, ranking first globally; while MAXHUB conference interactive smart board has continuously maintained the first position in the Chinese market and second globally. This indicates that the company has already gained a certain market position. From 2023 to 2025, the revenue share of the company's intelligent terminals and applications decreased from 55.2% to 47.6%, while the revenue share of intelligent control components increased from 42.4% to 50.1%, surpassing intelligent terminals for the first time to become the largest source of revenue. The fastest growing business is the white goods controller business, with revenue reaching 2.515 billion yuan in 2025, a year-on-year growth of 46%. The revenue from liquid crystal display main control boards also continued to grow, indicating that the company is gradually transforming into a more comprehensive platform-based smart control enterprise. In recent years, the construction of domestic education informatization has entered a relatively mature stage, with the penetration rate of interactive boards continuing to increase, and industry growth beginning to slow down. On the other hand, the demand for emerging markets such as smart appliances, automotive electronics, and power electronics continues to expand, providing greater growth space for controller products. In addition to changes in business structure, AI is also a keyword repeatedly mentioned in the company's prospectus. It is understood that the company has launched the HiClass Teach model and MAXHUB Leading Effectiveness model around vertical industry AI, embedding AI capabilities into specific application scenarios such as lesson preparation, classroom interaction, meeting collaboration, and smart office, in order to build an integrated ecosystem of "hardware + software + AI services". In terms of overseas layout, as of the first quarter of 2026, the company's business covers more than 100 countries and regions worldwide, with overseas revenue accounting for around 25%, and continues to promote the internationalization of the MAXHUB brand and the development of the ODM business. Compared to the relatively mature domestic commercial display market, overseas digital education and enterprise digitalization still have high growth potential and are also the company's future key focus areas. However, market space does not necessarily growth. Whether it is the commercialization of AI products or the building of overseas brands, continuous investment in research and development, channels, and localization operations is required, and these investments may further impact profitability in the short term. Beyond growth space, there are still questions to answer about profitability and valuation. Looking at the financial performance, Guangzhou Shiyuan Electronic Technology's overall operating quality still maintains a relatively high level in the industry. It is understood that the company's operating revenue was 20.173 billion yuan, 22.401 billion yuan, and 24.354 billion yuan in 2023 to 2025, showing continuous growth, with a further 23.9% year-on-year growth to 6.203 billion yuan in the first quarter of 2026. In terms of profitability, the company's net profit in 2025 was 1.147 billion yuan, a slight increase from 2024, with a 35.7% year-on-year increase in net profit in the first quarter of 2026, indicating some signs of profit recovery for the company. However, another set of data is also worth noting. The company's gross margin decreased from 24.5% in 2023 to around 19.6% in 2025, although it stabilized at around 20% in the first quarter of 2026, there is still some pressure compared to the past. At the same time, the net profit margin also decreased from around 6.9% in 2023 to around 4.7% in 2025, indicating that revenue growth has not completely translated into profit growth. The pressure on gross margins is related to changes in product structure: in recent years, the company's fastest-growing businesses are intelligent control components such as liquid crystal display main control boards and white goods controllers, which belong to the manufacturing industry with significant economies of scale. The competition is relatively fierce, and profit levels are usually lower than software and educational solutions. In addition, the company's ongoing expansion into overseas markets, AI research and development, and product upgrades have also increased phase costs. From 2023 to 2025, the company's research and development expenses reached 1.422 billion yuan, 1.540 billion yuan, and 1.588 billion yuan, respectively, with the proportion of revenue exceeding 6%. Continuous research and development efforts not only reflect the company's desire to maintain technological leadership but also indicate that it will need to rely on new products and scenarios to absorb research and development costs in the future, otherwise, the pace of profit improvement may be affected. Currently, the market for educational interactive boards has matured over many years, with a high penetration rate in the domestic market, and new demand gradually shifting from incremental to stock renewal. While the enterprise conference board still has a certain growth space, in recent years, more and more office equipment companies, display manufacturers, and Internet companies have started to enter this race, resulting in continued intensifying market competition. At the same time, AI is reshaping the industry's competitive logic, and the future competition focus may gradually shift from simple hardware performance to software ecosystem, model capabilities, and continuous service capabilities. For Guangzhou Shiyuan Electronic Technology, this is both a challenge and an advantage. The challenge is that the company needs to continue to invest in research and development, continuously improve the software ecosystem, and enhance the efficiency of AI applications to maintain its leading position. The advantage is that the company already has a large terminal installation scale and industry customer resources. Whether it is the numerous schools covered by HiClass or the large number of corporate clients accumulated by MAXHUB, it means that the company has rich real-world application scenarios. At the same time, from the market structure perspective, the company still derives about 75% of its revenue from the Chinese market, although overseas business continues to grow, the overall proportion is still limited. If the investment pace in domestic education and enterprise digitalization slows down, it may still have a certain impact on the company's revenue in the short term. Secondly, the company's intelligent terminal business is highly dependent on two major application scenarios: education and enterprise services. Changes in industry sentiment will directly affect the demand for related products. In addition, liquid crystal display main control boards, as a mature industry, may face further competition in the future, and if price competition continues to escalate, it may also compress profit margins. For this Hong Kong listing, the funds raised by the company will mainly serve global expansion, research and development investment, and intelligent manufacturing capability construction. In the long term, if the company can continue to increase the proportion of overseas revenue, drive AI software business to form new sources of profit, and further expand the layout of intelligent control components in emerging markets such as automotive electronics and power electronics, its growth space is still worth paying attention to. However, if the growth of the commercial display market slows down further in the future, and the release of new businesses is slower than expected, the company's valuation may return more to its manufacturing industry attributes rather than enjoying a valuation premium as a high-growth technology company. Therefore, from the current standpoint, the biggest highlight of Guangzhou Shiyuan Electronic Technology is no longer the leader in educational interactive boards or conference boards, but whether it can gradually grow into a comprehensive technology platform that covers intelligent terminals, intelligent control, and industry digitalization solutions based on display technology, AI capabilities, and global supply chain advantages. This is not only the company's growth direction in the next few years but will also determine what long-term value pricing the capital market is willing to give after its listing on the Hong Kong Stock Exchange.