--- title: "[HK IPO] Brief Review of Meig Smart and Zhaowei Machinery & Electronics" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/38939921.md" description: "Fans who know me well should have guessed what I want to talk about today. "No new stocks for weeks, and then four come at once, HKEX, are you kidding me?" Fortunately, I've already looked into most of the stocks in this round, so it should be manageable. First, Meig Smart Technology is sponsored by CICC, no greenshoe, included in the Stock Connect on the first day, cornerstone investors 45.4% but the lineup is very ordinary, public offering 35,000 lots. I already posted an article about the company's situation the day before yesterday. To sum up, it's a company comparable to Fibocom in scale, but in terms of fundamentals, except for this year's revenue growth rate, it falls short of Fibocom in most dimensions..." datetime: "2026-02-27T10:22:34.000Z" locales: - [en](https://longbridge.com/en/topics/38939921.md) - [zh-CN](https://longbridge.com/zh-CN/topics/38939921.md) - [zh-HK](https://longbridge.com/zh-HK/topics/38939921.md) author: "[每天打个新](https://longbridge.com/en/profiles/16231871.md)" --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/topics/38939921.md) | [繁體中文](https://longbridge.com/zh-HK/topics/38939921.md) # [HK IPO] Brief Review of Meig Smart and Zhaowei Machinery & Electronics Fans who know me well should have guessed what I want to talk about today. "No new stocks for several weeks, and then four come at once. HKEX, are you kidding me?" Fortunately, I've already looked over most of the stocks in this round, so I should be able to keep up. **1\. Meig Smart Technology** Sponsored by CICC, no greenshoe, eligible for Stock Connect on the first day. Cornerstone investors take 45.4% but the lineup is mediocre. Public offering is 35,000 lots. I already posted an article about the company's situation the day before yesterday. To summarize, it's a comparable company to Fibocom in terms of valuation, but its fundamentals, except for this year's revenue growth rate, are inferior to Fibocom in most dimensions. Fibocom's H-share is currently at a 59.8% discount (approx. 60% off). Factoring in the sentiment premium for new listings and high leverage, the discount rate might reach around 50% in the short term. The pricing was announced today, with a maximum of HKD 28.86. The A-share rose 5.18% today (currently CNY 49.18), corresponding to a discount rate of 49% (approx. 51% off). This discount rate can only be said to be relatively reasonable, with limited upside. For me, to subscribe, it needs to be at least below 55% off, meaning the A-share needs to rise above CNY 56. **2\. Zhaowei Machinery & Electronics** First, let's briefly look at the offering details. Sponsored by China Merchants Securities and Deutsche Bank, also no greenshoe. Are they all going to play the "eligible for Stock Connect on day one" game from now on? Cornerstone investors take 33%, including top institutions like Hillhouse, Dacheng, and Mirae Asset. The lineup is decent. The total public offering is 26,700 lots, which isn't much among A+H stocks. 1\. The company's core competitiveness lies in its integrated solution of transmission systems, micro-motor systems, and electronic control systems. Its main business consists of four categories: automotive products, consumer & medical products, industrial intelligent manufacturing products, and robotic dexterous hands. Among these, automotive products dominate absolutely, with revenue share rising from 42.7% in 2022 to 62.9%. Consumer/medical and industrial intelligent manufacturing products have been shrinking, with their combined revenue share dropping from 66% in 2022 to only 36% (revenue amount also declined significantly). The dexterous hand business is growing at a decent pace, with not only high revenue growth but also gross margin increasing from 14.1% in 2022 to 45.8% in 2025. However, due to a small base, it only accounts for about 1%, contributing only CNY 15.53 million in revenue in the first nine months of 2025. 2\. The company's overall gross margin has been rising continuously, increasing by about 1 percentage point each year, reaching 32.7% in the first nine months of 2025. 3\. Revenue grew 15% annually from 2022-24, and net profit grew 22.4% annually. Growth continued in 2025. 4\. The company has strong technical barriers in the micro-motor field. It developed China's smallest Φ3.4mm micro rotary system and is the world's first enterprise to achieve high-quality, efficient mass production of micro transmission systems below Φ6mm. It has also made breakthroughs in Φ4mm brushless coreless motor technology and now has mass production capabilities. 5\. CFO net inflow exceeded net profit in 2022-23 but has declined significantly in recent years. The cash flow/net profit ratio dropped from 150% in 2022 to 50% in 2024-25. The core reason is that the increase in the company's trade payables did not match the revenue growth rate (while receivables basically matched). In 2024, the company's accounts payable increased by only 6% year-on-year, while revenue increased by 25.6%, reflecting a certain decline in the company's bargaining power with upstream suppliers. Looking at the company's top five suppliers, we found that in 2024, this "Supplier A," which started cooperation in 2023, entered the top five for the first time, with transaction value of CNY 31 million. In 2025, Supplier A became the company's largest supplier, with transaction value of CNY 30 million. It's worth noting that since 2022, almost all top five suppliers established their cooperation in 2022. Payment terms, except for Supplier I, are 60-90 days. Supplier I is a German multinational chemical company with over 110,000 employees. And this Supplier A came with 30-day payment terms and became the largest supplier the following year. If this "Brother A" were some impressive listed company, it might be understandable, but this is merely a private company with registered capital of CNY 10 million. From supplier changes to cash flow decline, does this indicate a significant weakening of the company's premium pricing power over upstream suppliers? Supplier I would say: Smash that TV before you leave! What level are you, having the same payment terms as me? 6\. Overall, the company's fundamentals are quite good, standing out in the sluggish electrical machinery and equipment manufacturing industry. However, it can't really be considered a hot sector. Although it's a supplier of dexterous hands for Tesla's robots, the volume is far from significant. The current A-share price has also returned to the level of February 2025. The company's maximum issue price this time is HKD 73.68. The A-share fell 1.57% today, with a current discount rate of 44%. On the surface, the discount seems large. Actually, Sanhua Intelligent Controls and Joyson Electronics, which are also automotive parts + robotics concept stocks, have current discount rates of 42%/47%. Therefore, a 44% discount rate cannot be called attractive, only relatively reasonable. Whether we can make money depends on whether the A-share rallies in the coming days and by how much. **The remaining two will be posted on Monday. Why next Monday? Because we don't work on the makeup day~** $ZHAOWEI(02692.HK) $MEIG(03268.HK) ### Related Stocks - [ZHAOWEI (003021.CN)](https://longbridge.com/en/quote/003021.CN.md) - [MeiG (002881.CN)](https://longbridge.com/en/quote/002881.CN.md) - [ZHAOWEI (02692.HK)](https://longbridge.com/en/quote/02692.HK.md) - [MEIG (03268.HK)](https://longbridge.com/en/quote/03268.HK.md)