Broad-Ocean Motor Seeks Hong Kong Listing After 15 Years on Shenzhen Exchange
Zhong Shan Broad-Ocean Motor Co. Ltd. (002249.SZ), a leading player in auto propulsion technology, is seeking a second listing in Hong Kong after 15 years on the Shenzhen Stock Exchange. The company's impressive financial growth and dominant market position make this a significant move in the world market.
Broad-Ocean's financials have been robust. Its gross margin jumped from 19.3% in 2022 to 22.2% in 2024, while net margin leaped from 3.9% to 7.5% in the same period. Notably, the company's net income has been growing at an average annual rate of 44% from 2022 to 2024, outpacing its overall revenue growth. This strong performance is driven by its two key business pillars: building and home appliance motors (58.4% of sales) and powertrain and key components (41.5% of sales).
The company specializes in HVAC, automotive propulsion, and hydrogen fuel cell systems. It is the world's second-largest supplier of HVAC electric drive solutions, leading the market in China and North America. Its global manufacturing footprint spans 15 facilities worldwide, with R&D centers in the U.S. and Europe. Major competitors include Nidec, Mabuchi Motor, and Johnson Electric in electric drives, and Danfoss, Emerson Electric, and Siemens in HVAC systems.
Broad-Ocean's IPO in Hong Kong aims to capitalize on the hot stock market today for new energy and tech companies. With its Shenzhen-listed shares up about 130% over the past year, giving it a market cap of about 28.5 billion yuan, a Hong Kong listing will provide direct access to overseas capital and enhance its international brand and governance image.
