New Stock Outlook | Csg Smart Science & technology Files Again: Profit "Deep-V" Reversal Can Dual Drivers Break Through the Revenue Plateau?

Hong Kong Stock Exchange disclosed on October 22 that Csg Smart Science & technology Co., Ltd. (referred to as: Csg Smart Science & technology) submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with Huatai International and Guoyuan International as joint sponsors. The company had previously filed with the Hong Kong Stock Exchange on January 19, 2026. Against the backdrop of both the power equipment and energy storage, and industrial Siasun Robot&Automation tracks being in a boom cycle, the market can easily package Csg Smart Science & technology as a scarce target driven by the dual wheels of "grid digitalization + Siasun Robot&Automation." But dissecting the prospectus, what truly deserves pricing is not the track label itself, but whether its profit repair can traverse the revenue plateau period, and whether new stories such as energy storage, virtual power plants, and quantum encryption can move from pilot projects to scaled revenue. Revenue Enters Plateau Period, Growth Momentum Switches According to the prospectus, Csg Smart Science & technology's business structure can be summarized as a dual-wheel drive of "grid base plate + energy storage + Siasun Robot&Automation second curve." The power equipment and energy storage segment is the revenue ballast: the company has deeply cultivated intelligent power distribution and consumption for more than 20 years, with products covering primary and secondary fusion circuit breakers, ring main units, FTU, DTU, etc., deployed in 31 provincial power grids nationwide, and has long served the largest state-owned grid company; in 2025, it ranked second in the primary and secondary fusion circuit breaker and FTU markets, fourth in DTU, and sixth in ring main units, demonstrating strong customer stickiness and demand visibility in the grid automation field. Quantum-encrypted smart switches remain in small-scale pilots and should not be counted as scaled revenue in the short term. On the energy storage side, its industrial and commercial energy storage shipments rank among the top ten nationwide and top three in the high-energy-consumption subsegment; grid-forming energy storage has completed engineering prototypes and been delivered and operated in microgrids; power trading and intelligent microgrid management systems are still being piloted at a small number of sites and have not yet formed large-scale revenue, belonging to a typical option business with "rankings, scenarios, and pending volume ramp-up." The Siasun Robot&Automation segment is the second curve: industrial manipulators ranked first in China by cumulative revenue from 2020 to 2025, SRM stacker cranes ranked first in cumulative revenue in the lithium battery industry, and it has delivered thousands of projects in new energy, automotive, construction machinery, and rail transit, with multi-scenario implementation capabilities, though under project-based characteristics, order continuity and cross-industry replication need attention. Looking at financial performance, from 2023 to the first half of 2026, Csg Smart Science & technology's operating revenue was 3.025 billion yuan, 2.687 billion yuan, and 3.015 billion yuan in 2023, 2024, and 2025 respectively, overall in a plateau period of around 3 billion yuan, with scale expansion slightly lacking momentum. But entering the first half of 2026, the company recorded revenue of 1.524 billion yuan, achieving a year-on-year growth of 15.2% compared with 1.323 billion yuan in the same period last year, indicating that against the backdrop of increased grid investment and energy storage business volume ramp-up, the revenue side is returning to a growth track. Even more impressive is the leapfrog repair of its profitability. The company's gross margin climbed all the way from 20.8% in 2023 to 24.9% in the first half of 2026. With revenue not significantly expanding, the counter-trend increase in gross profit mainly benefited from the increased proportion of high-gross-margin Siasun Robot&Automation solutions or grid-forming energy storage products, as well as the effectiveness of supply chain cost reduction measures. More specifically, the explosive growth at the profit end relied not only on gross margin improvement but also on drastic cost reduction and efficiency enhancement. Csg Smart Science & technology's net profit quickly turned from a loss of 171 million yuan in 2023 to a profit of 61.56 million yuan in 2024 and 85.66 million yuan in 2025, and in the first half of 2026 it captured a profit of 111 million yuan, with a net margin of 7.3%. Behind this is a comprehensive "slimming" of expense ratios: selling expenses fell from 9.6% in 2023 to 7.8% in the first half of 2026, administrative expenses from 8.6% to 7.1%, and financing costs were sharply compressed from 0.8% to 0.2%, showing that its debt structure and financing costs have been effectively optimized. But it is worth noting that its R&D expenses declined in absolute terms, falling continuously from 259 million yuan in 2023 to 183 million yuan in 2025. However, delving into its earnings quality, the cash flow statement exposes hidden concerns behind the book profits. From 2023 to 2025, the company's net cash flows from operating activities were 24.40 million yuan, 119 million yuan, and 197 million yuan respectively, and the annual data appear healthy and improving; but semi-annual data show that net operating cash outflow in the first half of 2025 was as high as 104 million yuan, and the net outflow further expanded to 159 million yuan in the first half of 2026. This sharp fluctuation of "cash collection in the second half, bleeding in the first half" highly matches its business structure dominated by major customersits main customers are large state-owned enterprises such as State Grid and large industrial customers. This reflects the company's greater pressure to advance funds and longer collection cycles in the industrial chain. Along with the cash outflow in the first half, as of June 30, 2026, the company's cash and cash equivalents fell to 263 million yuan, significantly shrinking from the end of 2025, and net cash inflow from financing activities in the period was 103 million yuan. This series of tight funding conditions highlights the company's urgent need for external financing and is also an important practical motivation for its active push toward a Hong Kong IPO. Dual-Wheel Drive of Power Equipment and Energy Storage + Siasun Robot&Automation Weakens Dependence on a Single Industry Cycle From the revenue structure perspective, the power equipment and energy storage segment is Csg Smart Science & technology's absolute base plate, and its "ballast" role is continuously strengthening. The segment's revenue as a proportion of total revenue climbed from 66.1% in 2023 to 78.2% in 2024 and 76.8% in 2025, maintained at 75.5% in the first half of 2026, and absolute revenue scale also grew steadily from 2.00 billion yuan in 2023 to 2.31 billion yuan in 2025. Under the industry backdrop of new power system construction and distribution network automation upgrades, the company, relying on its leading position in the intelligent power distribution and consumption field (such as circuit breakers, FTU, DTU, etc.), continues to enjoy the medium- and long-term investment dividends of major customers such as State Grid. Particularly noteworthy is the marginal improvement in its energy storage business. The gross profit of this business rapidly repaired from a large loss (-66.4%) in 2023, with gross margin stable above 10% in 2024 and 2025, and further rising to 17.3% in the first half of 2026. Although the absolute scale of energy storage revenue is currently small, the turning positive and climbing of gross margin marks that its industrial and commercial energy storage and grid-forming energy storage products are gradually crossing the cultivation period and beginning to have their own cash-generating capacity, which is the key incremental logic for breaking the company's revenue ceiling. In sharp contrast to the steadiness of the base plate, the Siasun Robot&Automation segment has undergone drastic business reshaping and cyclical tests over the past three years. The segment's revenue plummeted from 1.024 billion yuan in 2023 to 586 million yuan in 2024, then slowly recovered in 2025 and the first half of 2026, but its proportion has shrunk from 33.9% to around 24.5%. This cliff-like decline was not purely a market factor but the result of the company's "scraping the bone to cure the poison"gross profit data show that in 2024 the company decisively cut off the continuously loss-making AGV and body-in-white welding production line businesses and divested "other" inefficient products. After the strategic contraction, the retained core businesses show strong profit resilience: the gross margin of industrial manipulators rose from 21.8% in 2023 to 27.8% in the first half of 2026, and the gross margin of inspection Siasun Robot&Automation recovered to a high level of 32.0% after fluctuations, effectively offsetting the negative impact of the stacker crane business being dragged down by the slowdown in lithium battery industry expansion (gross margin falling from 27.5% to 15.9%). This action of "sacrificing scale for quality" directly drove the steady upward trend of the company's overall gross margin. From the industry prospect perspective, the dual tracks in which Csg Smart Science & technology operates have broad growth space and present structural dividends of "stable overall market + local high growth." Its power equipment and energy storage base plate is anchored to a broad market, with China's scale expected to reach 727.6 billion yuan by 2030. Among them, the energy storage side is expected to double to 160.4 billion yuan, and primary and secondary fusion circuit breakers will reach 22.3 billion yuan. As the top player with the second-largest market share in circuit breakers, the company's grid-side advantage is solid, while industrial and commercial and grid-forming energy storage are its core elasticity for breaking the current revenue ceiling, although it still needs to pass the cyclical test from pilot to scaled monetization. In the Siasun Robot&Automation track, China's industrial Siasun Robot&Automation is expected to approach 200 billion yuan by 2030, with a compound growth rate of 15.3%. The company needs to leverage the industry's high Beta tailwind to push industrial manipulators and inspection Siasun Robot&Automation to break away from dependence on a single lithium battery cycle and replicate into multiple scenarios such as automotive and construction machinery to realize the dividends.