Information on the target
Longqi Technology Co., Ltd. (603341.SH) is a leading original design manufacturer (ODM) in the smart product sector, specializing in smartphones, tablets, and AIoT products. With nearly 20 years of experience, the company has established a robust portfolio that includes partnerships with major global brands such as Xiaomi, Honor, OPPO, and Vivo. As of March 1, 2024, Longqi Technology successfully launched its IPO, achieving a remarkable closing increase of 99.69%, resulting in a market capitalization of approximately 24.148 billion RMB.
Longqi Technology holds the top position in the global smartphone ODM/IDH market, with a reported shipment of 138 million smartphones in 2022, accounting for 28% of the global market share. The company has been instrumental in designing and manufacturing popular products, including the Redmi 9 and Redmi Note 10 series, which have each surpassed ten million units in sales.
Industry overview in the target’s specific country
The ODM/IDH market for smartphones has shown significant growth, with a total revenue of approximately $29.7 billion in 2022, representing 39.4% of the global smartphone market. Projections indicate that by 2025, the market will continue to expand, with shipments expected to exceed 600 million units, capturing over 40% of the overall smartphone market and increasing sales to $37.2 billion. This growth is driven by the rising penetration of ODM/IDH services and the increasing demand for smart devices.
In recent years, the global smart product ODM/IDH market has experienced accelerated consolidation, with market share increasingly concentrated among leading players. According to Counterpoint data, the top three smartphone ODM/IDH manufacturers, including Longqi Technology, accounted for 75% of the market share in 2022. The competitive landscape is characterized by economies of scale, high technical barriers, and the necessity for comprehensive service capabilities, suggesting that leading firms will likely enhance their market positions further.
Longqi Technology has demonstrated impressive financial growth, with revenues rising from 16.421 billion RMB in 2020 to 29.343 billion RMB in 2022, and net profits increasing from 299 million RMB to 561 million RMB during the same period. This translates to compound annual growth rates of 33.68% and 36.98%, respectively. The company is actively diversifying its product offerings to include tablets, smartwatches, and VR/AR devices, thereby establishing a second growth curve.
As the Internet of Things (IoT) trend continues to evolve, leading international brands are expanding their portfolios to encompass a full range of consumer electronics, including smartphones, tablets, and AIo…