Sealand Securities Co.,Ltd. has released a research report initiating coverage on GALAXIS TECH (02729) with a "Buy" rating, highlighting the company's integrated "hardware + software + artificial intelligence" solutions for warehousing and intralogistics. The brokerage anticipates the company will benefit from manufacturing intelligence upgrades, rising demand for automated warehousing in e-commerce retail, Chinese enterprises expanding overseas, and the growth in intelligent logistics equipment demand driven by global supply chain restructuring. Looking ahead, the firm expects revenue to maintain rapid growth and profitability to gradually improve, supported by the delivery of existing orders, deepening localized overseas operations, the demonstration effect of benchmark projects, and the realization of economies of scale.

Sealand Securities forecasts the company's revenue for 2026-2028 to reach RMB 1.188 billion, RMB 1.530 billion, and RMB 1.957 billion respectively. In the first half of 2026, GALAXIS TECH reported revenue of RMB 504.9 million, a 45.1% increase from RMB 348.0 million in the same period of 2025, driven primarily by an increase in projects delivered in China, particularly large multifunctional integrated systems and AMR deployment projects. The company's cost of sales for 2026H1 rose 45.6% to RMB 416.7 million from RMB 286.1 million in the prior year, in line with increased project delivery. Gross profit grew 42.7% to RMB 88.2 million from RMB 61.8 million year-over-year.

Where growth is coming from

The company, a comprehensive provider of intelligent intralogistics robots, offers a diverse portfolio centered on three core product lines: Multi-directional Shuttle Robot (MSR), Autonomous Mobile Robot (AMR), and Conveyor Sorting Robot (CSR). During 2026H1, its overseas strategy has entered a systematic implementation phase, with local teams established in North America, Southeast Asia, South America, and Europe. The company has partnerships with 22 overseas collaborators and has expanded its business across 31 countries and regions. Notably, the company leveraged its Very Narrow Aisle Forklift Robot (VFR) as a market entry point to successfully secure its first project order in Australia from a health product manufacturer.

In terms of key account development, the company passed multiple assessments by a globally renowned home furnishing retailer based in Sweden and officially entered its global shuttle supplier list. The company also signed new VFR projects with a leading global electronics manufacturer based in Japan and a local furniture retailer, effectively opening up the Japanese market. Capitalizing on the trend of Chinese enterprises going global, the company won a bid in 2025 to construct a factory project in Brazil for a Chinese manufacturer, marking its first project in the South American market and serving as a strategic anchor. In 2026H1, it also secured a shuttle plate project with a local Brazilian food manufacturer, demonstrating initial progress in its South American business layout.

Benchmark project demonstrates delivery capability

In mainland China, the company completed a core benchmark project during 2026H1, which serves as the customer's largest national core warehousing hub. The facility is equipped with industry-leading automation levels, achieving 40% higher operational efficiency compared to traditional manual warehouses. The entire facility has a total storage capacity exceeding 800,000 boxes, a daily outbound processing capacity of 320,000 order lines, and supports a daily delivery volume of 60,000 items, shipping to over 4,500 stores across 12 cities in the Pearl River Delta. Both dispatch accuracy and delivery timeliness rates remain consistently above 99.9%. The project deployed various intelligent logistics equipment to handle all logistics scenarios, including 120 MSRs, 98 VFRs, and 15 kilometers of automated conveyor lines. The efficient operation of these diverse equipment showcases the company's end-to-end service capabilities from planning and design to system integration and delivery, with its full-stack solution enabling customers to automate processes from receiving, palletizing, putaway, picking, checking, to outbound dispatch across the entire workflow.

RMB 2.2 billion in pending orders

As of June 30, 2026, the company's total value of pending robot and system orders stands at approximately RMB 2.2 billion, expected to be fulfilled over the next three years, including 56 ongoing overseas projects with a total pending value of RMB 710 million. The company remains focused on expanding its robot product portfolio, increasing market share, and deepening customer relationships to drive sustainable growth in both domestic and international markets. Future strategic initiatives include: (i) maintaining product innovation leadership through sustained R&D investment; (ii) strengthening overseas operations through selective market focus and localized execution; (iii) expanding into new industries and application scenarios and deepening penetration in core verticals; (iv) enhancing supply chain collaboration to build a scalable intelligent intralogistics ecosystem; (v) sustaining revenue growth; and (vi) improving management and operational efficiency.

Gross margin slightly lower, R&D investment up

The gross margin for 2026H1 was 17.5%, compared to 17.8% in the prior year period, with the slight decrease mainly attributed to a higher share of revenue recognized from multifunctional comprehensive systems, which typically involve higher procurement costs for third-party equipment and components related to system integration, as well as increased implementation costs from more complex system design and execution. Administrative expenses rose 45.7% to RMB 59.3 million in 2026H1 from RMB 40.7 million, primarily due to increased professional service fees following the listing. Sales and marketing expenses increased 53.2% to RMB 30.8 million from RMB 20.1 million, mainly driven by higher employee benefits, business development and travel expenses, and warranty-related service costs. R&D expenses grew 27.3% to RMB 38.7 million, attributed to higher employee costs supporting ongoing product and technology development.

Risk factors highlighted in the report include a relatively high debt-to-asset ratio and reliance on IPO proceeds to repair the balance sheet, potential insufficiency of fundraising leading to working capital shortages, foreign exchange losses on HKD deposits and foreign currency assets, amplified exchange rate volatility risk from a larger overseas business share, intensifying industry competition, gross margin below expectations, slower-than-expected overseas expansion, order conversion failing to meet expectations, compliance issues related to past regulatory penalties for the actual controller and management, and technological iteration and product innovation falling short of expectations.