Core Viewpoint - The report from CMB International highlights the competitive advantage of Geek+ due to its innovative autonomous mobile robot (AMR) technology, with significant growth potential in the warehouse logistics sector driven by increasing AMR penetration rates [1] Group 1: Company Overview - Geek+ operates in 40 countries and serves over 800 end customers, with 72% of its revenue expected to come from overseas by 2024 [1] - As the first publicly listed warehouse AMR company in Hong Kong, Geek+ possesses unique value in the market [1] Group 2: Financial Projections - The company is projected to achieve a compound annual growth rate (CAGR) of 34% in revenue from 2024 to 2027 [1] - Significant profitability is anticipated starting in 2026 [1] Group 3: Investment Rating - CMB International initiates coverage on Geek+ with a "Buy" rating and sets a target price of HKD 26.7, which corresponds to a price-to-sales ratio of 7.7 times the forecast for 2026 [1]

Industry Overview - The humanoid robot sector is experiencing a significant recovery in sentiment, driven by positive changes in both domestic and international robot supply chains [1] - The global smart in-house logistics robot market is expected to grow from RMB 118.3 billion in 2024 to RMB 344.1 billion by 2030, with a compound annual growth rate (CAGR) of 19.5% [2] - The Chinese market is projected to grow from RMB 44 billion in 2024 to RMB 133.9 billion by 2030, with a CAGR of 20.4%, surpassing the global average growth rate [2] Company Positioning - 凯乐士科技 is positioned as a leading provider of smart in-house logistics robot solutions in China, with a strong focus on reshaping supply chain operations through advanced robotics technology [4] - The company is among the few globally that possess a comprehensive suite of in-house logistics solutions, covering all core functionalities and meeting diverse industry needs [9] Technological Innovation - The company has established a competitive moat through continuous innovation in core technologies, supported by a highly experienced management team and a robust patent portfolio [6][5] - 凯乐士科技's product matrix includes multi-directional shuttles (MSR), autonomous mobile robots (AMR), and conveyor sorting systems (CSR), which are designed to enhance operational efficiency across various sectors [7] Financial Performance - In 2024, the company is projected to achieve revenue of RMB 721 million, reflecting a year-on-year growth of 30.9% [10] - The number of clients has increased from 566 to 779 over three years, indicating strong market demand and successful partnerships with industry leaders [10] - The adjusted net loss for 2024 is expected to decrease by approximately RMB 72.1 million compared to 2023, signaling improved financial health [11] Strategic Growth - The company aims to expand its international presence, having already established operations in 12 countries and regions [12] - 凯乐士科技 is focusing on high-value industries such as pharmaceuticals, 3C electronics, new energy, and automotive manufacturing, which require advanced automation solutions [12] - The gross margin for after-sales services reached 64.5% in 2024, significantly higher than other business segments, contributing to stable recurring revenue [12] Conclusion - The upcoming IPO of 凯乐士科技 is timely, coinciding with a critical point in the industry transformation, and will serve as a benchmark for evaluating the potential of Chinese robotics technology in high-end manufacturing [13]

Core Viewpoint - Zhejiang Kailesi Technology Group Co., Ltd. is planning to list on the Hong Kong Stock Exchange, aiming to raise funds for product development, technology enhancement, capacity expansion, global market strategy, and operational funding [1] Group 1: Company Overview - Kailesi Technology specializes in intelligent in-house logistics robots, offering a full range of products including Multi-directional Shuttle Robots (MSR), Autonomous Mobile Robots (AMR), and Conveying Sorting Robots (CSR) [2] - The company is one of the few that has mastered full-stack robotic technology and offers a comprehensive self-developed product lineup, covering all core functions of in-house logistics [2] Group 2: Market Growth vs. Company Performance - The global intelligent in-house logistics robot market is projected to grow from RMB 42.6 billion in 2020 to RMB 118.3 billion in 2024, and reach RMB 344.1 billion by 2030 [2] - However, Kailesi Technology's revenue growth has lagged behind the industry, with revenues of RMB 660 million in 2022, declining to RMB 550 million in 2023, and only rising to RMB 720 million in 2024, resulting in a compound annual growth rate of 4.8%, significantly below the market's 33.4% [2] Group 3: Financial Performance - The company has reported losses for three consecutive years, with annual losses of RMB 210 million, RMB 240 million, and RMB 180 million from 2022 to 2024, totaling RMB 630 million [3] - Despite a reduction in losses in 2024, the ongoing losses indicate an immature profit model [3] Group 4: Cost Control Measures - In an effort to reduce losses, the company initiated a cost-cutting strategy in 2024, reducing sales expenses from RMB 690 million in 2022 to RMB 410 million in 2024 (a 41% decrease), R&D expenses from RMB 950 million to RMB 620 million (a 34% decrease), and administrative expenses from RMB 780 million to RMB 610 million (a 22% decrease) [3] - Despite these efforts, the company's gross margin remained low, with figures of 15.7%, 16.6%, and 15.7% from 2022 to 2024, well below the industry average of 27.3% [3] Group 5: R&D Investment Trends - R&D investment has decreased over the past three years, from RMB 946 million in 2022 to RMB 620 million in 2024, a cumulative reduction of 34% [4] - In 2024, R&D expenses accounted for 8.6% of revenue, nearly equal to administrative expenses [4] Group 6: Customer Concentration and Stability - The concentration of customers has decreased, but the customer structure remains unstable, with the top five customers accounting for 48.0%, 49.7%, and 34.3% of revenue from 2022 to 2024 [5] - The largest customer's revenue share has declined, representing only 10.8% of total revenue in 2024, with no single customer generating over RMB 100 million annually [6]

Core Viewpoint - Zhejiang Galaxis Technology Group Co., Ltd. (referred to as "Galaxis Technology") has submitted its prospectus for an IPO on the Hong Kong Stock Exchange, aiming to leverage capital market opportunities for rapid development [1][2]. Company Overview - Galaxis Technology specializes in intelligent in-house logistics robots, offering a full range of robotic products across three core product lines: Multi-directional Shuttle Robots (MSR), Autonomous Mobile Robots (AMR), and Conveyor Sorting Robots (CSR) [3][6]. - The company claims to be one of the few globally that possesses full-stack robotic technology and a comprehensive self-developed product portfolio [3][17]. Market Growth - The global intelligent in-house logistics robot market is projected to grow from RMB 426 billion in 2020 to RMB 1,183 billion by 2024, and is expected to reach RMB 3,441 billion by 2030 [3]. - The Chinese market is anticipated to expand from RMB 139 billion in 2020 to RMB 440 billion by 2024, with a compound annual growth rate (CAGR) of 33.4% [3]. Performance Metrics - Galaxis Technology's revenue was RMB 6.6 billion in 2022, decreased to RMB 5.5 billion in 2023, and is projected to rise to RMB 7.2 billion in 2024, resulting in a CAGR of only 4.8% [6][7]. - In comparison, competitors like Xizhi Technology and Standard Robots have CAGRs of 28.8% and 61.3%, respectively, indicating Galaxis Technology's significant underperformance relative to the industry [6][7]. Market Position - Galaxis Technology holds a market share of 1.6%, ranking fifth in a highly fragmented market where the top five companies account for only 12.6% of the total market [9][10]. - The company faces intense competition and must innovate and expand its market presence to avoid being surpassed by rivals [9]. Financial Challenges - The company has reported losses for three consecutive years, with losses of RMB 2.1 billion in 2022, RMB 2.4 billion in 2023, and RMB 1.8 billion in 2024 [11]. - Despite efforts to reduce costs, including a 41% reduction in sales expenses and a 34% decrease in R&D spending, the company has not achieved a turnaround in profitability [11][12][15]. Profitability Issues - Galaxis Technology's gross margins have remained low, with rates of 15.7%, 16.6%, and 15.7% from 2022 to 2024, significantly below the industry average of 27.3% [12][13]. - The company's strategy to enhance market penetration has not yielded substantial results, as evidenced by its low market share and high customer concentration [12][13]. Customer Base Concerns - The company has a high customer concentration, with the top five customers accounting for 48.0%, 49.7%, and 34.3% of revenue from 2022 to 2024 [18][19]. - The stability of the customer base is questionable, as only one non-affiliated core customer has repeated business over the past three years, indicating a high turnover rate among clients [19][20].

Core Viewpoint - The logistics industry is undergoing significant transformation driven by technological advancements, with logistics robots at the forefront of this change. Zhejiang Kailesi Technology Group has submitted an IPO application to the Hong Kong Stock Exchange, marking a pivotal moment for China's smart logistics technology on the global stage [1]. Financial Performance - Kailesi's revenue is projected to grow from 657 million yuan in 2022 to 721 million yuan in 2024, with gross profit increasing from 103 million yuan to 114 million yuan during the same period [2]. - The majority of Kailesi's revenue comes from robot and system sales, expected to account for approximately 97.4% of total revenue in 2024, while after-sales services contribute 2.6% [2][3]. Strategic Investments - Kailesi has invested heavily in R&D, totaling 242 million yuan over the past three years, resulting in 278 patents and a robust technological barrier across its three main product lines [4]. - The company has seen a significant increase in project numbers from 1,156 in 2022 to 1,530 in 2024, indicating growing market recognition and demand for its products [4]. Market Position and Innovation - Kailesi is one of the few companies globally with comprehensive in-house developed robotic products, capable of meeting all operational needs in logistics [6]. - The company has developed advanced robots with unique features, such as the VFR, which operates in narrower aisles while maintaining high efficiency [6]. Ecosystem Development - Kailesi is expanding its ecosystem by providing a unified platform that integrates third-party logistics products, enhancing customer customization and operational efficiency [7]. - The company is establishing a strong presence in high-value sectors, such as pharmaceuticals and renewable energy, leveraging its technological capabilities [7]. Global Expansion - Kailesi has a strong shareholder base, including major industry players, which enhances its market credibility and growth potential [9][10]. - The company is expanding its global footprint, with revenue from markets outside mainland China increasing from 77 million yuan in 2022 to 105 million yuan in 2024, reflecting successful international strategies [11].