Key Takeaways:
Cheng-Tech has filed to list in Hong Kong, reporting its revenue surged 464% in the first half of last year, though it remained in the red
The millimeter-wave radar maker faces risks from reliance on a single client, and is making efforts to diversify
As autonomous driving gains speed and acceptance, key components are fueling the technology's rise. While cameras and light detection and ranging (LiDAR) are among the higher-profile of those, Shenzhen Cheng-Tech Co. Ltd. hopes to impress investors with its status as China's third-largest maker of automotive millimeter-wave radar, as it revs up for a Hong Kong IPO. The company aims to capitalize on current enthusiasm for technology stocks, including a growing number engaged in autonomous driving, as Hong Kong experiences one of its hottest IPO markets in years.
Cheng-Tech has some strong credentials in the smart car space, established in 2016 by former Huawei worker Chen Chengwen, and Zhou Ke, who possesses over 20 years of experience in automotive electronics. The company began mass deliveries of its corner radars for passenger vehicles in 2020. A year later it secured designation as a Tier-1 supplier for a German automaker. In 2022, it won orders from a leading domestic OEM after being named as a designated supplier.
The company has also signed on multiple investors since its founding, including listed companies Ningbo Shanshan and Beijing Xinleineng Technology, among others. Chairman Chen is currently its largest shareholder with a 15.48% stake.
The company's primary product, millimeter-wave radar, functions as a non-contact sensor that emits radio wave signals. It then receives those signals when they bounce back and processes them to detect targets and determine a car's spatial position, movement direction, speed, distance, and surrounding objects.
While many autonomous vehicles are typically equipped ...
