Core Viewpoint - Shanghai Longqi Technology Co., Ltd. (stock code: 09611.HK) has officially launched its IPO in Hong Kong, planning to issue 52.26 million H-shares with a maximum price of HKD 31.00 per share, aiming to capitalize on the booming demand in the AI sector for performance growth and valuation enhancement [3][5]. Company Overview - Established in 2004, Longqi Technology has evolved into a leading ODM service provider for smart products, offering a comprehensive range of services from product research and design to manufacturing and support [3][5]. - The company has a global presence with R&D centers in Shanghai, Shenzhen, and Huizhou, and production bases in Huizhou, Nanchang, Vietnam, and India, along with branches in the US, South Korea, Japan, Singapore, and Hong Kong [3][5]. Market Position - Longqi Technology holds a 22.4% market share, ranking as the second-largest consumer electronics ODM globally and the largest smartphone ODM with a 32.6% market share [5][14]. - The company has established long-term partnerships with major brands like Xiaomi, Samsung, Lenovo, and OPPO, with several collaborative models exceeding 10 million units in shipments [5][15]. Business Model - The company employs a "1+2+X" framework, focusing on smartphones as the core, personal computing and automotive electronics as key growth areas, and emerging consumer electronics like tablets and wearables [5][7]. - In 2024, smartphone revenue reached RMB 36.13 billion, accounting for 77.9% of total revenue, while AIoT revenue surged by 122% year-on-year to RMB 5.57 billion, representing 12.0% of total revenue [7][8]. Financial Performance - Revenue grew from RMB 29.34 billion in 2022 to RMB 46.38 billion in 2024, with a compound annual growth rate (CAGR) of 25.7% [8][9]. - Net profit improved from RMB 5.6 billion in 2022 to RMB 5.1 billion in the first nine months of 2025, reflecting a 20.9% year-on-year increase [8][9]. Competitive Advantages - Longqi Technology invests heavily in R&D, with cumulative expenditures of RMB 7.23 billion from 2022 to the first nine months of 2025, focusing on wireless communication, audio, display, optics, and AI applications [11]. - The company has established a robust global supply chain and production capabilities, enhancing its competitive edge in responding to market demands and fluctuations in raw material prices [11][12]. Industry Outlook - The global ODM market for consumer electronics is expected to grow, with a forecasted increase in shipment volumes from 2.11 billion units in 2024 to 2.49 billion units by 2029, driven by AI technology integration [12][13]. - The automotive electronics market is projected to expand from RMB 2.5 trillion in 2024 to RMB 3.3 trillion by 2029, indicating significant growth opportunities for ODM manufacturers [13][14]. Future Growth Potential - Longqi Technology is well-positioned to benefit from the AI-driven demand surge in smartphones and other smart products, with expectations of substantial revenue growth in AIoT, AI PCs, and automotive electronics [15][16]. - The company anticipates achieving a net profit of RMB 6.85 billion in 2025, representing a 29.4% year-on-year increase, with further growth projected for 2026 and 2027 [16].
龙旗科技港股上市：AI端领军者，智能ODM迎爆发增长