LEO(SZ:002131) Ge Long Hui·2025-10-09 08:37Core Viewpoint - The next wave of value discovery in the Hong Kong stock market will revolve around AI, with the integration of AI into manufacturing becoming a key battleground for capital markets. The company Leo Group is set to become a unique player in this space as it prepares for its IPO on the Hong Kong Stock Exchange, potentially becoming the first stock focused on "AI digital marketing + AI manufacturing" [1][7]. Group 1: Business Model and Market Position - Leo Group is not solely an AI concept company but integrates AI technology into two distinct yet synergistic business areas: digital marketing and intelligent pumps and systems [1]. - In the AI digital marketing sector, Leo Group is a leading AI-driven digital marketing group in China, projected to achieve the largest revenue in the digital marketing market by 2024, with a market share of 8.72% in digital advertising [3]. - The intelligent pumps and systems segment ranks second in China and thirteenth globally by revenue in 2024, with the company being the top exporter in the domestic civil pump sector [5]. Group 2: Financial Performance and Growth Potential - The digital marketing segment has shown stable revenue growth, with revenues of 15.931 billion, 16.514 billion, and 16.435 billion yuan from 2022 to 2024 [3]. - The intelligent pumps and systems segment generated revenue of 4.234 billion yuan in 2024, reflecting a year-on-year growth of 21.56% [5]. - The dual business model allows Leo Group to capture opportunities across various industries, including automotive, consumer electronics, and new energy, maximizing the benefits of intelligent upgrades [6]. Group 3: Market Trends and Strategic Advantages - Leo Group is positioned to benefit from a confluence of capital, industry, and policy support, enhancing its growth potential as the first "AI dual business integration stock" in China [7]. - The company’s unique value proposition is further highlighted by the valuation surge of comparable companies like Applovin, which has seen significant revenue and profit growth, thereby increasing market interest in AI-driven marketing [8]. - The intelligent pump business provides a stable revenue base, while the AI digital marketing segment offers high growth potential, creating a synergistic effect that enhances overall company valuation [10]. Group 4: Industry Alignment and Policy Support - Both business segments align with national strategic priorities, benefiting from supportive policies aimed at AI and smart manufacturing, which are key areas of focus for economic transformation [12]. - The rapid growth of the liquid cooling market, driven by increasing data center demands, presents a significant opportunity for Leo Group to establish itself as a leader in this emerging sector [12]. Conclusion - Leo Group's upcoming IPO in Hong Kong is timely, as it represents a rare opportunity in the market for an "AI + manufacturing" dual business leader. The company's comprehensive integration of AI technology across its operations positions it well for future growth and investment appeal [14].