SERES(SH:601127) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-18 04:14Core Viewpoint - The company, Seres, is accelerating its Hong Kong IPO process, aiming to become the first "A+H" listed new energy vehicle company, with a significant portion of the raised funds allocated for R&D to enhance its technological capabilities and reduce external dependencies [1][2]. Group 1: IPO and Funding Allocation - Seres has received approval for its Hong Kong IPO and plans to use 70% of the net proceeds for research and development, signaling a focus on strengthening its core technologies [2]. - The company aims to support and exceed its current market valuation of over 260 billion RMB by presenting a compelling narrative to investors, focusing on its existing market presence and future growth potential through new business ventures [2]. Group 2: Sales and Revenue Structure - The Aito brand, which contributes 90% of Seres' revenue, is projected to see sales increase from 78,000 units in 2022 to 389,000 units by 2024, solidifying its role as the main growth driver for the company [3][6]. - In 2022, Aito's revenue accounted for 60% of total revenue, expected to rise to over 90% by 2024, indicating a deep reliance on the Aito brand for financial performance [6][9]. Group 3: Strategic Focus and Market Position - Seres is strategically narrowing its focus on the Aito brand while reducing resources allocated to other brands, such as the Blue Electric brand, which has seen minimal sales [7][9]. - The company has established a robust distribution network for Aito, with over 310 user centers and 670 experience centers across more than 210 cities in China, enhancing sales capabilities [9]. Group 4: Dependency on Huawei - Seres has a significant dependency on Huawei, with approximately 30% of its revenue directed towards Huawei for various components and services, raising concerns about potential risks associated with this reliance [11][16]. - The partnership with Huawei has been crucial for Seres' transformation into a competitive player in the high-end new energy vehicle market, but it also poses risks if the relationship were to deteriorate [12][16]. Group 5: Future Growth and Diversification - Seres is expanding its business narrative beyond vehicle manufacturing by investing in the new energy supply chain and diversifying into intelligent robotics through partnerships with companies like ByteDance [19][21]. - The acquisition of Longsheng New Energy for approximately 8.164 billion RMB is expected to enhance operational efficiency by eliminating rental costs for production facilities [20]. Group 6: Valuation and Market Perception - Analysts project a 31x PE ratio for Seres in 2025, significantly higher than the traditional automotive parts sector, reflecting the market's expectation for growth driven by innovative business models [22]. - The company's ability to maintain stable vehicle sales while exploring new growth avenues will be critical for its valuation transition [22].