Superstar Juchuang (02498.HK) is a Chinese lidar and sensing solution provider. It specializes in providing laser radar, integrated vision or other sensor sensing solutions for ADAS, robots and others (including self-driving taxis, cleaning, logistics, industry, public services and inspection). The Group has launched three lidar platforms, including R platform, M platform, and E platform. Among them, i) R platform products are traditional mechanical lidars, mainly used in robots and other non-automotive industries, ii) M platform products are the main lidars installed in vehicles, and iii) E platform products are specially designed for short-range detection.

Increased product coverage: In April 2024, Superstar Juchuang (02498.HK) released lidar MX. The product has a field of view of 120° x 25°, a maximum distance of 200 meters, and a thickness of only 25mm. Furthermore, the Lidar MX consumes approximately 10W of power. At the same time, since MX does not use 5 transmitters and receivers, it has a competitive advantage among similar products. Superstar Juchuang (02498.HK) has further expanded its product line to include lidar products that can cover a distance of more than 300 meters, including the launch of the new ultra-long-range lidar product M3 at CES 2024 in January 2024, and the F platform, which is expected to be launched in 2025. The former uses a 940nm laser transceiver scheme, which is smaller in size, lower in power consumption, and superior in cost compared to 1,550nm. Ultra-long detection distance products can detect obstacles scattered farther away in advance, and are also more applicable to regions that require a longer inspection distance from abroad.

Dual wheel growth momentum: Superstar Juchuang (02498.HK) has developed lasers with different ranges, covering mechanical and solid-state lidars. Among them, the M platform is the Group's main source of revenue, while the E platform and the future F platform will start mass production separately in 2025 and 2026, which is expected to become one of the Group's growth engines. In the first quarter of 2024, sales volume of lidar products used in ADAS was 116,000 units, growing 5.4x year over year, maintaining the number one market share. As of May 2024, the number of fixed orders received by Superstar Juchuang (02498.HK) increased to 71 models, driving momentum for the Group's ADAS lidar product sales growth. Furthermore, Skytron Juchuang (02498.HK) defines it as a robot company. Its lidar products are similarly applied to robots, including mechanical lidar on the R platform and the solid-state lidar E platform with a shorter range. Currently, the Group mainly uses Helios and Blackpearl products to meet the needs of robot customers, especially clean, unmanned forklift robots, and its E platform products will be delivered in the fourth quarter of 2024, mainly to meet domestic service robots. Since some early investors, such as Alibaba and Xiaomi, are involved in the robotics sector, the former has already become one of the Group's robotic lidar customers, providing the Group with opportunities for more stable growth.

Valuation: For the first time, we covered Rapid Growth Juchuang (02498.HK), and carried out the valuation through the discounted cash flow valuation model and market sales rate valuation model, and gave a “buy” rating, with a target price of HK$23.30.