SERES(SH:601127) Xin Jing Bao·2025-11-05 13:45Core Viewpoint - The successful IPO of Seres on the Hong Kong Stock Exchange marks the largest fundraising event for an automotive company in Hong Kong this year, raising over HKD 14 billion, with the company aiming to enhance its global presence and competitiveness through this capital raise [1][3]. Company Overview - Seres, originally a parts manufacturer, entered the automotive manufacturing sector in 2003 through a joint venture with Dongfeng and ventured into the electric vehicle market in 2016. The company faced financial difficulties until its partnership with Huawei in 2021, which revitalized its business [2][4]. - The company rebranded from "Chongqing Xiaokang Industrial Group Co., Ltd." to "Seres Group Co., Ltd." in 2022, and it is projected to achieve over CNY 100 billion in revenue and nearly CNY 6 billion in net profit by 2024 [2][4]. IPO Details - Seres issued a total of 10.8 million H-shares, with a final offering price of HKD 131.50 per share, raising a total of HKD 14.283 billion, with a net amount of HKD 14.016 billion after expenses [3]. - The company plans to allocate 70% of the raised funds to research and development, with the remainder directed towards building overseas sales channels [2][3]. Financial Performance - The partnership with Huawei has significantly boosted Seres' revenue, with projections showing a rise from CNY 143.02 billion in 2020 to CNY 1451.76 billion in 2024, marking a growth of over 300% [4]. - In the first three quarters of this year, Seres reported revenue of CNY 1105.34 billion, a year-on-year increase of 3.67%, and a net profit of CNY 53.12 billion, up 31.56% [4]. Market Position and Strategy - The majority of Seres' revenue is derived from its Aito brand, which accounted for over 90% of total revenue in the first half of this year. The sales of Aito vehicles are projected to grow significantly from 78,000 units in 2022 to 389,000 units in 2024 [4][5]. - The company is strategically reducing focus on other brands to concentrate on Aito, with a significant decrease in the number of dealerships for other brands from 1882 in 2022 to an expected 400 in 2024 [5]. Debt and Global Expansion - Seres operates with a high leverage ratio, with debt-to-asset ratios increasing from 79.2% in 2022 to 87.4% in 2024, indicating potential financial strain [6]. - The company aims to strengthen its overseas market presence, with international revenue declining from 11.5% of total revenue in 2022 to 2.9% in 2024. The IPO is seen as a means to accelerate its global strategy [7]. Future Growth Potential - Seres has entered a partnership with ByteDance to explore opportunities in embodied intelligence, indicating a strategic move to diversify its growth avenues beyond electric vehicles [7]. - The company has set an ambitious target of achieving a production capacity of one million electric vehicles within three years, amidst a highly competitive automotive market [7].