Northeast Securities reiterated its "Buy" rating on SHOUCHENG (00697), citing strong Q1-Q3 2025 performance with revenue and net profit growing 30% and 22% YoY respectively. The company is accelerating its transformation into an integrated robotics service platform through investments, operational empowerment, and ecosystem development, while expanding its offline experience stores and live-streaming initiatives. Its REITs-focused full-cycle asset management capabilities have been further strengthened with multiple strategic investments.
Key financials show SHOUCHENG achieved HKD 1.215 billion revenue (+30% YoY) and HKD 488 million net profit (+22% YoY) for the first three quarters of 2025. The company announced a new share repurchase program, planning to buy back up to HKD 1 billion worth of shares from the open market between November 17, 2025 and December 31, 2028.
The company's three-pronged robotics strategy combines investment incubation, operational support, and ecosystem co-construction: 1) Investment: Multiple industry funds have completed investments in key robotics players including Unitree Technology, Deep Robotics, Stellaris Robotics, Accelerated Evolution, Pine Extension Power, Differential AI Fly, and Quanzhi Bo, focusing on humanoid robots, aerial drones, and core components. 2) Business synergy: Established SHOUCHENG Robotics Advanced Materials in Q3 2025 to strengthen upstream material supply chains, complementing its Beijing-based robotics subsidiary that handles sales, leasing, consulting and supply chain management. 3) Industry services: Launched China's first permanent robotics experience store "Tao Zhu Innovation Hub" during the National Day holiday at Shougang Park's R+ Lifestyle Center, with additional outlets at Beijing Capital Airport T3 and Chengdu's Chunxi Road. The "SHOUCHENG W" live-streaming channel further expands its "new consumption + new tech" retail strategy.
On the REITs front, the company utilized its Beijing Pingzhun Infrastructure REIT Fund (total scale RMB 10 billion, first tranche RMB 5.237 billion) co-established with China Life Insurance to invest in multiple infrastructure REITs covering tech parks, data centers, consumer infrastructure and clean energy. Its urban development fund also completed a rental housing project investment in Beijing's core area during Q3 2025, with plans to expand in four key regions.
Financial forecasts project 2025-2027 revenue of HKD 1.52/1.71/1.89 billion and net profit of HKD 580/790/960 million, with corresponding P/E ratios of 30.7x/22.4x/18.5x. Risks include slower-than-expected robotics development, parking business deceleration, and intensified competition.
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