Black Sesame International Holding Ltd., a smart car technology maker, has seen its shares decrease by 10% since its trading debut in August, while other recently listed peers have seen strong gains. Despite this, the company reported a 52% increase in revenue in the previous year, with its gross margin improving notably in the first half of the year.
The company’s stock received a boost after issuing a profit alert, leading to a 3.5% increase in shares. Black Sesame expects to report a revenue growth of 52% for all of 2024, with a net profit of about 100 million yuan. The reasons for the revenue growth include increasing sales of smart driving products and chips for vehicle-road-cloud integration, supported by government policies.
However, the company’s late entry into the smart driving market has led to it lagging behind its peers in terms of product adoption and gross margins. While Black Sesame has products included in two mass-produced vehicles, Horizon Robotics and Minieye have a higher number of models using their products.
Despite this, investors are hopeful that Black Sesame’s revenue growth will continue to accelerate, especially if the company can demonstrate that its products are gaining traction among car makers. The company’s stock continues to be undervalued, according to some investors, and the recent profit alert has instilled confidence that Black Sesame is on a path to success in the smart driving technology market.
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