Recently, Reddy smart drive GEM IPO registration success, listing is imminent. The company focuses on the key parts of automation equipment, as a supplier of Huichuan Technology and Estun, and has achieved steady growth in recent years. The company intends to raise 357 million yuan in IPO, and the sponsor is Sinofold Securities.

Founded in 2009, the company is a high-tech enterprise committed to the research and development, production and sales of key components of automation equipment transmission and braking system. The company’s products include precision transmission parts, electromagnetic brakes and harmonic reducer, etc., which are widely used in CNC machine tools, robots, elevators and other fields.

YS1700-000-A34 The company intends to raise 357 million yuan, and the raised funds will be mainly used to invest in the construction of electromagnetic brake expansion projects, and the construction project of Ruidi Intelligent drive R & D Center, respectively, to invest 307 million yuan and 51 million yuan. The “electromagnetic brake capacity expansion project” is the key project raised by the IPO, accounting for 86% of the capital, and the production capacity of a total of 3.59 million sets of electromagnetic brakes can be achieved annually after the project is reached, providing protection for the realization of the company’s overall development strategy.

After years of growth and development, the company has become one of the few manufacturers in the industry with product design, manufacturing and testing verification of precision transmission parts, electromagnetic brakes and harmonic reducer manufacturers. The ultra-thin servo brake for robots independently developed by the company has been widely used in the automatic control field of precision small space such as service robots and collaborative robots.

The company’s customers are mainly global or domestic well-known enterprises in the downstream field, such as the domestic industrial automation leading enterprise Huichan Technology, the domestic industrial robot head enterprise Esten, the world’s famous elevator manufacturers Hitachi elevator, Otis elevator and Toshiba elevator, the international well-known transmission parts enterprises Germany Lingfei, Japan Toon machine, the United States Fenner transmission and so on.

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With the continuous maturity of industrial automation technology, the application scale of the industry continues to expand, and the industrial automation market has been greatly developed. According to the data, the global industrial automation market will reach $480.73 billion in 2023. In the future, with the continuous advancement of the global Industry 4.0 era, the demand for industrial automation equipment in various application fields will further increase, and the global industrial automation market is expected to reach 543.66 billion US dollars by 2025.

YS1700-000-A34 In recent years, China has introduced a number of policies to encourage the development of advanced manufacturing, providing a solid policy guarantee for the progress of the industrial automation industry, at the same time, the demand for the localization of key components will also bring great opportunities for domestic substitution.

In terms of performance, Ridi Intelligent Drive has achieved steady growth in recent years, and the company’s operating income in 2020, 2021, 2022 and 2023 is 410 million yuan, 567 million yuan, 587 million yuan and 585 million yuan respectively. The net profit returned to the mother was 47 million yuan, 65 million yuan, 0.75 million yuan and 97 million yuan, respectively.

In terms of gross margin, the comprehensive gross margin of Reddy Intelligent Drive in 2021, 2022 and 2023 from January to June was 27.30%, 28.38% and 32.88%, respectively, showing an upward trend. According to the prospectus, this is mainly because the company has established a number of application industry layout and first-mover advantages, the sales volume of high value-added products is growing, and the product sales structure is optimized, so that the company’s main business profit scale continues to improve.