Autozi Internet Technology Gears Up for NASDAQ Debut: What Investors Need to Know
Autozi Internet Technology Ltd has published that its IPO is going to be floated on the 16 of August 2024. It is an innovative tech company specializing in advanced digital solutions and AI-driven services for global markets. It aims to gather US$11.3 million with 2.5 million shares, with the price range of US$4.00 to US$5.00 per share.
Company Overview
Autozi Internet Technology (Global) Ltd. is a dynamic technology company providing creative digital solutions powered by data services for the future of successful businesses and ambitious brands. Autozi uses advanced analytics and artificial intelligence to bring efficiency to its products as well as its operations. It focuses on scaling its presence in new domestic and international markets through strategic alliances as well as acquiring relevant businesses to strengthen its service delivery. Through regular upgrades to its online customer service platform, Autozi ensures that autonomy is a reality for all dealership-related needs and captures more information for clients to gain a competitive advantage in the market.
Company Strategy
Autozi Internet Technology (Global) Ltd. strategy is based on three key elements: technological innovation, business expansion and customer satisfaction. The company is built around deploying sophisticated data analytics and AI to optimize both product development and operational efficiency. It strengthens its market position by focusing on ISG in growth areas both domestically and globally through strategic alliances to offer a good digital experience to enhance customers experiences. Autozi has a business model focused on flexibility with high investment in research and development to align itself as per changing market needs for long-term sustained growth leading toward improved profitability.
IPO Profile
| Symbol: | AZI |
| Exchange: | NASDAQ |
| Shares: | 2.5 million |
| Price Range: | US$4.00 to US$5.00 |
| Estimated Value: | US$11.3 million |
| Manager | Kingswood Capital Markets |
| Co-managers | N/A |
IPO Objective:
The IPO objective of Autozi Internet Technology (Global) Ltd. (AZI) is to raise capital to enhance its technological infrastructure, expand its market presence, and drive growth. The funds will be utilized to invest in advanced technology, improve operational efficiencies, and develop new products and services. Additionally, AZI aims to strengthen its balance sheet, reduce existing debt, and support strategic acquisitions. By going public, AZI seeks to increase its visibility, attract potential investors, and gain a competitive edge in the global market, ultimately positioning itself for long-term success and profitability.
Application Process of IPO
In order to invest on NASDAQ, you need to a create brokerage account with a brokerage firm that trades NASDAQ: Fill in the registration form with your personal and financial data from a reliable brokerage firm offering trading on NASQAQ. Upon registration of the account, fund the account and then proceed to the trading platform. Go to the AZI and type the number of shares you wish to buy. If you prefer, you can enter a market order at the prevailing market price and order limit, in next step is to submitted order.
Financial Analysis of Company
Financials in millions USD
| Particulars (in million USD) | 2023 | 2022 | 2021 |
| Revenue | 113.54 | 120.35 | 67.22 |
| Gross Profit | 0.5 | 0.72 | 1.46 |
| Operating Income | -7.33 | -4.66 | -5.86 |
| Pretax Income | -21.58 | -18.4 | -16.67 |
| Net Income | -21.58 | -18.4
|
-16.67 |
| EBITDA | -8.09 | -4.06 | -5.12 |
| EBIT | -8.49 | -4.51 | -5.75 |
The company has experienced fluctuating revenue, growing from $67.22 million in 2021 to $120.35 million in 2022, then declining to $113.54 million in 2023. Despite this growth, the company’s profitability has been a concern. Gross profit fell from $1.46 million in 2021 to $0.5 million in 2023. Operating income worsened from -$5.86 million in 2021 to -$7.33 million in 2023. Net income remained negative, increasing losses from -$16.67 million in 2021 to -$21.58 million in 2023. Both EBITDA and EBIT showed a declining trend, indicating operational inefficiencies. This lack of financial stability underpins the need for Autozu to reduce its cost structure and increase operational efficiencies to make a successful initial public offering.
Competitor Analysis
- Kzmall
Kzmall is a China-based digital auto parts supply chain service platform, established in 2015. Its main target is to address end-to-end business needs in auto repair companies, contributing towards better operational efficiency. The company aims to simplify the procurement process for automotive parts while entering into strategic alliances that it says will help improve service delivery in the automotive aftermarket. Kzmall is emerging as a major player in the automotive industry’s digital transformation, with a significant race for e-commerce.
- Tuhu
Tuhu is a leading integrated automotive service platform in China. Founded in 2011, it has the largest selection of car maintenance and after-sales services, both online and offline. The startup employs a customer-first model where all service experiences can be performed digitally and on-demand for tire replacements, chassis replacement or maintenance & repair as part of automotive requirements. Tuhu has a large network that comprises 4,700 self-operated workshops and about ninteen thousand stores to cater to millions of registered users and it is the first automotive aftermarket company on the Hong Kong Stock Exchange.
- Carzone
Carzone is an automotive company that was established in 2013 in Nanjing, China and its primary business is the sale of automotive parts and accessories. The company is engaged in the sale of replacement automotive spare parts such as brakes, filters and ignition products, mainly to automotive repair and maintenance outlets. For improving the supply chain management strategy, Carzone has collected about $946.49 million, with the last round being Series D. The company intended to make procurement easier for garages and has set up a big market in the automotive aftermarket industry which offers dependable products and services to customers.
- Ruili Group Ruian Auto Parts
Ruili Group Ruian Auto Parts is a leading company that specializes in the manufacturing and supply of automotive spare parts. Focusing its business on brake systems, suspension components and other automotive components. The company is committed to research & development and quality. With its fully equipped technically sound manufacturing units that are designated R & D to offer quality and performance. The company’s objective is to offer dependable and long-lasting products for automotive applications to enhance customer satisfaction, increase organizational performance, and advance technology to gain a competitive advantage.
- Homotor.com
Homotor.com is one of the largest online store chains in China and deals exclusively in automotive parts and accessories. The company’s catalog comprises engines and engine parts, brake and suspension systems, electrical equipment, as well as exterior products. The platform is easy to navigate, affordable and offers product consulting and fast assistance to deliver most products exceptionally well to enhance the customer shopping experience in the automotive aftermarket.
Autozi Internet Technology (Global) Ltd.’s upcoming IPO on August 16, 2024, represents a pivotal moment for the company as it seeks to capitalize on its technological innovations and expand its market presence. The offering is set at a price range of $4.00 to $5.00 per share, aiming to raise approximately $11.3 million which Autozi plans to use to bolster its technological infrastructure, enhance operational efficiencies, and pursue strategic acquisitions.
Despite the innovative solutions and strategic expansions outlined by Autozi, the financial analysis reveals certain challenges. The company has shown a capability for revenue growth but struggles with profitability and operational efficiencies as evidenced by its fluctuating revenue and increasing net losses. The declining gross profit and negative EBITDA trends suggest that Autozi must address underlying operational inefficiencies and perhaps recalibrate its cost structures to improve its financial health.
In the competitive landscape, Autozi operates alongside significant players like Kzmall, Tuhu, Carzone, Ruili Group Ruian Auto Parts, and Homotor.com, each carving out its niche in the digital automotive space. These competitors highlight the vibrant and dynamic nature of the industry, pushing Autozi to continuously innovate and refine its service offerings to maintain a competitive edge.
The IPO does not only seek to raise capital but also to enhance Autozi’s visibility in the market and attract potential investors by demonstrating a commitment to growth and innovation. For investors, the decision to invest in Autozi should be weighed against the company’s current financial health, the robustness of its strategic initiatives, and its potential to navigate a competitive landscape.
Ultimately, Autozi’s success post-IPO will hinge on its ability to harness its innovative capabilities, improve its financial standings, and effectively execute its expansion strategies. Investors and market watchers will undoubtedly be keen to see if this IPO serves as a catalyst for Autozi to refine its operations and achieve sustainable growth, making it a noteworthy consideration in the portfolios of those who believe in the potential of digital solutions in transforming the automotive industry.
