As one of the world's largest manufacturers of heat-shrinkable materials and communication cable products, Shenzhen Woer Heat-Shrinkable Material Co., Ltd. (002130.SZ) is poised to embark on a new journey in the Hong Kong stock market. On January 27, the company disclosed its post-hearing prospectus on the Hong Kong Exchange, aiming for a main board IPO, following two previous applications submitted on June 17, 2025, and January 26, 2026. With its formal passage of the hearing, Woer moves a significant step closer to its Hong Kong listing.
Founded in 1998, Woer started with heat-shrinkable materials. In 2012, the company expanded its business map by acquiring Lotium Intelligent, entering the wire and cable sector. By 2018, it strategically ventured into wind power equipment and operations, formally extending into the new energy field. Today, Woer has established a dual-core business structure comprising "New Material Series Products" and "New Energy Wind Power/Photovoltaic Power Generation."
According to Frost & Sullivan data, based on 2024 global revenue, Woer ranks first globally in the heat-shrinkable materials industry, holding a 20.6% market share. It is also the world's third-largest telecommunications cable manufacturer (including high-speed copper cables), with a 12.7% global market share, and the largest high-speed copper cable manufacturer in China, commanding a 24.2% global share. Additionally, the company ranks fifth among Chinese manufacturers in the core charging products sector for new energy vehicles and first among cable accessory manufacturers in China's cable accessories industry.
Having successfully listed on the Shenzhen Stock Exchange in 2007, Woer's total market capitalization reached approximately RMB 36.94 billion as of the market close on January 28, 2026. As this "hidden champion" passes the HKEX hearing, the "A+H" camp is set to welcome a formidable new player.
Driven by its successful positioning in the two golden sectors of "AI + New Energy," Woer has built two core businesses: Electronic Communication (AI computing power) and Alternative Energy Power Transmission (New Energy). Specifically, the company provides electronic material products and communication cable products widely used in IT infrastructure, including computing centers, new energy vehicles, automation systems, robotics, and smart consumer electronics. Concurrently, it offers reliable power transmission products like charging guns and sockets, onboard charging accessories, nuclear-grade heat-shrink cable accessories, high-voltage cable accessories, and separable connectors for new energy vehicles, power grids, stations, and rail transit.
Operating in these high-potential growth sectors, Woer's performance demonstrates steady growth and solid profitability under this dual-engine drive. The prospectus shows revenues of RMB 5.337 billion, RMB 5.719 billion, and RMB 6.92 billion for 2022, 2023, and 2024, respectively, indicating consistent annual growth. Furthermore, gross profit and net profit also increased steadily, reaching RMB 1.612 billion, RMB 1.789 billion, and RMB 2.11 billion in gross profit, and RMB 660 million, RMB 758 million, and RMB 921 million in net profit for the same periods. While these core financial metrics grew, Woer's profitability remained stable, with gross margins of 30.2%, 31.3%, and 30.5% during the period. For the first nine months of 2025, the company achieved revenue of RMB 6.077 billion (up 26.12% year-on-year), gross profit of RMB 1.878 billion (up 25.63%), and net profit of RMB 883 million (up 24.54%).
Despite a robust fundamental profile, a potential risk lies in Woer's indirect reliance on a single major customer. During the reporting periods, sales to its top five customers accounted for 12.6%, 11.5%, 12.7%, and 19.3% of total revenue, respectively. Although customer concentration is not excessively high, because its high-speed copper cable business is indirectly supplied to giants like NVIDIA through connector manufacturers such as Amphenol, the ultimate demand depends on the capital expenditure cycles of a few AI leaders, potentially leading to earnings volatility.
Driven by strong policy support and technological revolution, AI computing infrastructure and global energy transition are undoubtedly the two highest-growth sectors currently. This provides substantial development space for Woer's two key segments. On one hand, the explosive demand for computing power in the AI era makes high-speed copper cables a core necessity in data centers. The global telecommunications cable market grew from RMB 10.5 billion in 2020 to RMB 13.4 billion in 2024, with a CAGR of 6.1%, and is projected to reach RMB 17.7 billion by 2029, with a CAGR of 5.9% from 2025. High-speed copper cables, used for interconnecting AI servers within and between racks in computing centers, hold immense market potential. Meanwhile, cables for consumer and industrial applications are expected to grow steadily, fueled by accelerated industrial automation and rising demand for consumer electronics, whereas other communication cables for traditional data centers are anticipated to gradually decline.
On the other hand, the irreversible global energy transition continuously drives the adoption of electric vehicles and upgrades in fast-charging technology. According to the prospectus, China's charging gun market is experiencing rapid growth, propelled by increasing NEV adoption and charging infrastructure expansion. By the end of 2024, China had installed over 1.6 million DC charging guns. Looking ahead, China's public DC charging pile count is forecast to reach 5 million by 2029, representing a CAGR of 23.3% from 2025, with growing demand for more efficient, safer, and smarter charging guns as NEV adoption rises.
It is important to note, however, that the markets for electronic communication and power transmission products are rapidly evolving and highly competitive, with many potential applications still in development. Thus, despite Woer's leading position in high-speed data and power transmission technology, it faces competition from companies developing solutions for these applications. Frost & Sullivan notes that the communication cable industry is intensely competitive and fragmented, with over 100 global participants. Furthermore, while Woer leads globally and domestically in heat-shrinkable materials, the industry is also highly competitive, with over 800 global and 300 Chinese players. The market for core NEV charging products is highly fragmented in China, with over 300 participants, and the global cable accessories market is very dispersed, with over 500 companies worldwide.
Consequently, even as a segment leader, Woer urgently requires capital infusion to seize the current window of opportunity and expand its leading advantage. The proceeds from the IPO are intended for three main purposes: firstly, business development and strategy implementation—focusing on core areas like electronic communication (e.g., high-speed copper cables) and new energy power transmission for product development, capacity expansion, and delivery efficiency improvement to strengthen mass production capabilities. Secondly, increased R&D investment—continuing to fund cutting-edge research in polymer radiation modification, high-speed data communication, and new energy high-voltage components to solidify its technological moat. Thirdly, optimizing global production capacity—advancing the construction of overseas production bases (e.g., expanding the Vietnam facility) and enhancing domestic capacity support to boost global delivery capabilities.
In summary, Woer's upcoming Hong Kong listing is clearly a strategic move to "stockpile provisions" for expansion in its golden sectors and pursue an international leap forward. Its success will directly impact its ability to convert existing technological leadership and market share into a long-term, solid competitive moat in the AI and new energy races. Investing in Woer is essentially a bet on two definitive trends: "AI computing infrastructure" and "new energy vehicle infrastructure." The company has established significant leadership and technological barriers in both sectors, positioning it to directly benefit from industry growth with a clear growth trajectory. The primary investment risks stem from potential technological disruption and industry cyclicality.
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