Core Viewpoint - Chengtai Technology, a radar supplier focusing on automotive millimeter-wave radar, is preparing for an IPO in Hong Kong, aiming to become the "first stock of millimeter-wave radar" in the market [1]. Company Overview - Chengtai Technology, founded in 2016 by former Huawei employees, specializes in automotive millimeter-wave radar, providing standardized hardware and customizable software [2][29]. - The company has completed 8 rounds of financing, raising a total of 359 million RMB, with a post-financing valuation of 1.32 billion RMB [1][29]. Product Offerings - Chengtai's core products include forward and corner radars, supporting driving assistance capabilities from L0 to L2+ [2][4]. - The forward radar series for passenger vehicles includes the CTLRR-220 series, with a detection range of up to 260 meters for the upgraded version [4]. - The company is also developing a new generation of central computing radar to enhance performance and simplify hardware [8][10]. Market Position - Chengtai has become the largest supplier of forward millimeter-wave radar in China, holding a market share of 9.3% in 2024 [14]. - The company has established partnerships with over 20 automotive OEMs, with BYD being its largest customer, accounting for over 90% of its revenue in recent years [14][17]. Financial Performance - Chengtai's revenue has shown significant growth, with projections of 348 million RMB in 2024, reflecting a compound annual growth rate (CAGR) of 145.7% from 2022 [17][20]. - The gross profit margin has improved, with the gross margin for forward radar increasing from 29.7% in 2022 to 43.1% in 2024 [20]. - The company is expected to turn profitable in 2024, with an adjusted net profit of 13.95 million RMB [20]. Research and Development - Chengtai has significantly increased its R&D spending, which accounted for 80% of total revenue in 2022, decreasing to 18% in 2024 as revenue grew [21]. - The company plans to use funds raised from the IPO for R&D, equipment upgrades, market expansion, and debt repayment [23]. Industry Trends - The global millimeter-wave radar market is projected to grow from 17.8 billion RMB in 2020 to 29.1 billion RMB in 2024, with a CAGR of 13.1% [34]. - The Chinese automotive millimeter-wave radar market is expected to reach 21.6 billion RMB by 2029, driven by policy mandates and increasing adoption of advanced driver-assistance systems (ADAS) [36][38]. - Chengtai anticipates that the penetration of millimeter-wave radar will continue to increase, especially in mid-range vehicles, as costs decrease and applications expand [42].