Mar. Competitive intensity is likely to increase going forward, especially in niche areas. What BNY Mellon can tell us about the Economy — Market Mad House, Smartphones Are Doing to Websites What Amazon Did to the Mall, Amazon Launched Their Electric Delivery Van — Here’s Everything You Need To Know, Planning for Growth? GoPro has a global presence, including Europe, the Middle East, Africa, and Asia-Pacific, with the Americas contributing over half of the total revenue. Early Black Friday drone deals are underway, explore all the top early Black Friday Yuneec, DJI, Holy Stone, Autel ⦠But this source of income is threatened by an emerging trend of mapping companies building their own drones. With drone giant DJI controlling over half the domestic industrial drone market, Jouav has a market share of just 5.4%. Three-quarters of the funds raised will go to a new Chengdu factory — which is expected to produce 3,700 drones each year — and the rest will go to research and replenishing its operating capital. The company has now delivered a total of 82,866 vehicles since its start. Its product line covers the high-end UAV flight control system and ground control system, the professional film and TV aerial photography platform, the top commercial gimbal system, the high-definition long-range ⦠However, there is a regulatory overhang over the company that stops it from commanding the kind of valuation a profitable company with $ 2 Bn+ revenue should command in current market conditions. DJI Unveils First Integrated Lidar Drone Solution And A Powerful Full-Frame Camera Payload For Aerial Surveying. Nio sold 352% more vehicles in January 2021 than it did in January 2020, indicating very strong growth prospects for the company. Not to mention the loss of almost 50% market share. 6) The most problematic factor for the consumer drone market in it is the local market is evolving government regulations around the use of drones. It offers consumer drones, including mini, AR, and bebop drones; commercial drones; handsfree kits, plug and plays, and infotainment products; Bluetooth, digital music, and infotainment solutions; and audio products and connected devices. Notable Investors: Accel Partners and Sequoia Capital, General Manager, SF; Director, Aerial Imaging: Eric Cheng. GoPro: GoPro is an American company that is engaged in designing and providing cameras, mounts, drones, and appliances. 3) Big firms such as Intel and Qualcomm are making significant investments and waiting for opportunities to replace DJI as the top drone player. Its product line covers the high-end UAV flight control system and ground control system, professional film and TV aerial photography platform, top commercial gimbal system, high-definition long-range digital video transmission system, professional-level wireless remote control and imaging terminal as well as intelligent model aircraft products and high-precision control module which are widely applied to flying toys. Its biggest clients are private mapping companies South Surveying and Mapping Technology Co. Ltd. and Shanghai Huace Navigation Technology Ltd., which contributed 23.61% and 3.15% of its 2019 revenue, respectively. Then Plan for Privacy, Inside the Growing Climate Rebellion at Amazon, When Innovation Isn’t Enough: Three Lessons From Intel’s Changing Fortunes and Uncertain Future. Trade Tensions in the Global Markets can impact both supply and demand: The last two years have witnessed various cases of deglobalization, which is considered especially harmful for the development of tech firms. According to an industry source, China-based drone pioneer Da Jiang Innovation (DJI) is currently involved in a few equity financing projects. This is a Venture Capital firm focused on seed stage, mid stage, ⦠We are sanguine about the prospects of DJI in the near term. This uncertainty is going to act as a glass ceiling to DJI’s IPO valuations and further share appreciation. A high-level overview of DJI Innovations (DJII) stock. DJI Osmo Pocket 2 â DJI Osmo Pocket was a revolutionary product when it launched in 2018. The fruit of the company’s early start and commitment to cost control show in their manufacturing prowess. Besides, due to differentiated design, Livox LiDAR is tens of times cheaper than the ones manufactured by the US-based company Velodyne. DJI was founded by Chief Executive Frank Wang in 2006 and counts Sequoia Capital China and Accel ⦠New export restrictions China recently imposed could worsen Jouav’s overseas business, as the rules require government approval for exports of items such as personal information push services based on data analysis and voice-recognition technologies, which are commonly used in smartphones, robots and drones. DJI is currently offered at a valuation of 18Bn and expected to IPO in 2021 at 24 Bn USD (current discount 25%). The IPO class of 2020 This yearâs batch of IPOâs is receiving a warm welcome from the public markets. China-based companies undertook a total of 30 IPOâs in the US in 2020 that collectively raised USD$11.7 billion, according to a report from Renaissance Capital published on 17 December. DJI has no official announcement to make on the fundraising and is not planning an initial public offering (IPO) at the moment, according to a spokeswoman for the company in an emailed statement. DJI Innovations is a Chinese company that produces commercial and recreational unmanned aerial systems. Copyright © 2019 Caixin Global Limited. 2) The American Drone Security Act is just around the corner, if passed it would mean that all federal agencies using Chinese drones, such as the Department of Justice and the Department of the Interior, would have 180 days to avoid using and purchase them. DJI IPO. This helps keep costs lower than any other player in the industry. Mar. A Picture Of People Not Getting It: 2019 Unicorn IPO Stocks. In DJI's case, the risks aroused by the trend of deglobalization involves every step from production to sales of DJI's business. Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com). Subscribe to Caixin Global starting at $0.99. Based on current market news, DJI is likely to launch its IPO with a minimum valuation of $24 - $27 Bn. It is likely at some point in the future DJI will have an IPO and the public will be able to purchase shares. However, their is much talk about a possible DJI IPO making it stock debut in 2019. 4) The development of open-source flight control platforms might ignite a fierce price war in the drone industry. DJI is the market leader with a 74% market share in the global drone market which is growing at 19.41% CAGR. USA is DJI's second-largest market. Talk of an initial public offering, which never came to pass, has been replaced by headlines documenting an internal fraud scandal that cost DJI $150 million. If DJI is blacklisted by the United States, it will lose access to motion tracking sensors that are supplied by InvenSense, Phantom series chips provided by Atmel, visual processors from Intel, and the WiFi SoC from Qualcomm. 1) Market Share: China's DJI possesses a 74% market share of the global consumer drone market. During the month, Nio delivered 1,660 ES8 SUVs, 2,720 ES6s, and 2,845 EC6s. 4) High Volume and Low Price Point Strategy: The firm aims for profit margins in the low single digits to ensure competitors cannot offer a similar drone at a lower price point. It has a market holding strategy of low price and high volume to keep competition at bay. In this article, we evaluate the merits of the world’s large drone manufacturing company and what investors can expect from its IPO. Also, DJI Manifold 2 has now been approved for Azure IoT Edge, making it easier for companies to deploy AI frameworks on computers. March 25, 2020, 9:01 PM PDT Every summer, DJI, the worldâs largest drone maker, puts on a competition in Shenzhen called RoboMaster. Fraud: Back in 2018, some of the employees had been inflating the cost of parts and materials for financial gain. Chinese Drones Fly Into Data Protection Controversy, Participation of Indian Prime Minister Narendra Modi in the 5th Eastern Economic Forum Discussed in Moscow, Get exposure for your startup at RISE 2020, CreditEase’s Tang Ning: China’s Wealth Management Market is Undergoing Five Major Shifts, Meet 5 of the best startups selected to represent China at the largest technology event in Asia. Handheld products like DJI OM 4 and DJI Pocket 2 capture smooth photo and video. It was valued at $15 Bn in 2018 during its last fundraising round, ranking it among the top tech unicorns worldwide. Support quality journalism in China. b. Agras T16 drone: The global launch of DJI's leading spray drone for agricultural applications that makes it easy to apply liquids such as fertilizers and pesticides specifically to field crops and orchards. Yuneec: Major Chinese competitor and manufacturer of remote-controlled electric aviation designed for model making applications and to conduct aerial photography. 8) Diverse client base: Caters to a diverse clientele in the industry from government to agri-businesses. 2019 was a rough years for many new stocks. They have expanded into racing drones for the gamers and even drones that carry people. Parrot Drones: Parrot is a European leader based in Paris that creates, develops, and markets consumer technology products for smartphones and tablets worldwide. Governments have been a stable source of sales, as Jouav has ties with bodies including the China Earthquake Administration and the Ministry of National Resources, as well as state-owned enterprises such as the country’s power transmission monopoly State Grid Corp. of China. 2020 ⦠According to a Reuters report, industry leading manufacturer DJI is set to take on fresh investment before a likely IPO next year. China’s second biggest industrial drone maker is set to go public on Shanghai’s Nasdaq-like high-tech STAR Market, but dominance of the industry by SZ DJI Technology Co. Ltd. and escalating Sino-U.S. tensions may dampen investor enthusiasm. Another major risk is the development of open-source flight control platforms, which might ignite a fierce price war in the drone industry. With rising geopolitical tensions, the situation might get worse, endangering approx. Its products are mostly used for mapping, inspection and surveillance. As the range and image sensors are essential for drones as well, DJI has been working on similar technologies for years, thereby helping easy technology migration for the vehicle LiDAR. DJI is currently offered at a valuation of 18Bn and expected to IPO in 2021 at 24 Bn USD (current discount 25%). China Stories: What China's Naturalized Athletes Reveal About its Immigration Policy, Exclusive: Hundreds of HNA-Linked Companies Expected to Restructure, Sources Say, HNA Group Moves Toward Bankruptcy Restructuring Under Mountain of Debt, Four Things to Know About China’s Big Changes to Data Collection Rules, Weekend Long Read: Do’s and Don’ts for China’s Tech Self-Sufficiency Dream. 3) Continued R&D: In 2016, DJI internally incubated the team Livox that focuses on R&D of LiDAR sensors for high-speed self-driving and industrial robotics. NEW YORK, OCTOBER 29, 2020: S&P Dow Jones Indices (âS&P DJIâ) has conducted a consultation with market participants on a potential change to the S&P U.S. IPO and Spin-Off and S&P U.S. Spin-Off Indices. However, as DJI's technology in consumer drones reaches a ceiling, it is only a matter of time for other system providers to catch up with DJI. Trainees included members of the judiciary and their assistants, in addition to the police, law enforcement officers, legal officers, lawyers, government employees, and the general public. DJI Innovations is evaluating an IPO in mainland China and Hong Kong in early 2021. This trend has seen Huace’s contribution to Jouav’s revenue slump from 16.98% in 2017 to its single-digit level last year. a. P4 Multispectral drone: the world's first fully-integrated multispectral imaging drone designed to power next-generation agriculture and allow more effective land-use environmental management. This marks the largest volume of capital raised by China-based companies via US exchanges since 2014, when ⦠Any change in regulations in the USA and EU can lead to significant disruptions to the business. Ad: Check out this superb DJI Mavic 2 Zoom deal on Amazon. Market Saturation and growing competitive pressure growing headwinds: Unless DJI finds more markets for its products or meaningfully expands its product suite, its growth is likely to stagnate. DJI planned to finance 1 billion yuan ($158M) at $15 billion dollar evaluation. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. As per Chinese regulations, only UAVs that weigh under 250 grams is not required to be filed with the local government. 1) The US government may blacklist DJI for potential data threats. Table: Financial performance of DJI compared to its competitors. DJI’s core business is strongly poised with an excellent value proposition to its clients – ranging from photography, agriculture, risk detection, racing to hobbyists. On the production side, the company heavily relies on overseas hardware suppliers. The company may have plans to go public in Hong Kong in 2021. In 2020, DJI drones are being used by many countries around the world to combat the corona virus. In China, DJI drones are used by the police force to remind people to wear masks. The company's flying camera drones utilize aerial engineering and camera drone technologies and develop quadcopters and flying remote control GoPro camera systems, enabling users with superior aerial imaging, filming, and photography. 40% of total revenues. If you are an investor or shareholder and want more advice about the Pre-IPO secondary markets, please feel free to reach out at support@torre.capital for investment advice, or register for an account at Torre Capital. It raised $427 Mn in its initial public offering on the NASDAQ stock exchange under the ticker symbol of GPRO in 2014. Another factor that could darken the drone-maker’s outlook is its reliance on imported components amid the tech decoupling of China and the U.S. All its drones’ laser scanners and inertial navigation systems come from abroad, and half of its camera lenses and one-third of its chips are imported. âThis round is called Pre-IPO financing. DJI held a total of 616 training hours in 2020, benefitting 2,665 trainees, a 69% increase compared to 2019. "We have not received such information yet internally," the company replied to the rumors. DJI Investors. DJI consumer-level quadcopters have been outperforming their competitors in terms of drone size, stability, image quality, and battery life since the release of its Mavic pro series in 2016. With the aim of satisfying regulatory and product listing requirements, S&P DJI is modifying the ⦠The company's aviation range from manned aircraft, electric drones, and audio controlled helicopters to micro-copters and camera supported quadcopters and hexacopters, enabling people to capture a broader picture and see live video of places from above. For now, Nio only offers ⦠DJI Innovations is a Chinese company that produces commercial and recreational unmanned aerial vehicles (UAVs). DJI focused on providing easy-to-use drones to farmers, agronomists, and stewards to help maintain their land in a more productive and environmentally sustainable manner, while also ensuring that emergency responders need assistance to respond effectively and save lives during natural disasters. At the current stage, DJI's popularity is caused by a temporary situation where the flight systems powered by the above companies are not competitive enough in terms of stability, maximum flight time, and human interaction. In May 2014, DJI raised USD 30 million is Series A funding from Sequoia Capital China. b. Microsoft has integrated Azure IoT Edge and Azure Cloud with DJI drones to streamline the secure deployment of DJI drone squads. Chinaâs second biggest industrial drone maker is set to go public on Shanghaiâs Nasdaq-like high-tech STAR Market, but dominance of the industry by SZ DJI Technology Co. Ltd. and escalating Sino-U.S. tensions may dampen investor enthusiasm.. Chengdu-based Jouav Automation Tech Co. Ltd. has received the green light for an IPO ⦠However, with drone giant DJI controlling over half the domestic industrial drone market, Jouav has a market share of just 5.4%. Taking EV/Revenue multiple into account and weighted average calculation of the comparable companies, we arrive at an NTM multiple of 4.77x – 6.15x which gives us an intrinsic valuation range of $9.54 Bn to $12.3 Bn. Easily accessible to varied users such including hobbyists and professional photographers. The drone market itself is growing at an exponential CAGR of 19.4%. Learn about our consumer drones like DJI Air, Mini, Mavic, and Phantom. 7) Future-ready product stack: DJI Drone technology helps companies and organizations around the world save time and money and increase the safety of employees in myriad industries. UVify: Developer and manufacturer of autonomous unmanned drones based in San Francisco CA, designed to create amazing experiences with drones. For exclusive information about additional research and insights by our Analysts, kindly subscribe to Torre Capital’s Blog. Download our app to receive breaking news alerts and read the news on the go. Drones brought in nearly three-quarters of Jouav’s 210 million yuan revenue last year, and related services contributed about 13%. In a nutshell, DJI is likely to continue its pole position in the drone market for the near future with better technology, a large product stack, and a competitive manufacturing setup. Due to its colossal size and market share, it’s difficult to compare it with any other drone company which has a similar size or business growth potential, however, we have compared it to publically traded companies GoPro, Parrot Drones, and Plantronics. In other words, the police, fire departments, traffic controllers, and several others could lose their drone fleets and have to find other suppliers or give up using drones. These moves have improved brand awareness and allowed DJI to reach more consumers than the competition. 20, 2020 DJI, BYND, DBX 24 Comments. 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