The maker of robotic pool cleaners has updated its Hong Kong IPO prospectus after an earlier application from last September lapsed

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Key Takeaways:

• Wybotics' updated Hong Kong IPO application shows it ranks third globally in robotic pool cleaners and holds the top spot for cordless models
• The company's gross profit margin has risen steadily over the last three years as it builds up its own brands and downplays its legacy ODM business

The race is on. Robotic pool cleaner maker Wybotics Co. Ltd. applied to float shares in Hong Kong late last month, beating out a similar filing from rival pool equipment maker Fairland Corp. by just days.

Wybotics is the world's third largest maker of robotic pool cleaners with 9.2% of the market in 2024, according to third-party research in its listing document. But the company is better positioned in cordless products — an area where it is the top name globally – positioning it to challenge the industry leaders over the long run.

Established in 2006, Wybotics jumped into cordless product development and made related patent applications as early as 2009, launching its first products in 2014. Those items accounted for nearly all of its revenue last year, around 97.5% of the total. In terms of cordless robotic pool cleaners, Wybotics is the clear leader with 19.7% of the global market.

Robotic pool cleaner shipments reached 4.9 million units last year, with the market growing at an average annual rate of 11.3% between 2020 and 2025. The annual growth rate is expected to slow but still be brisk at about 7.6% from 2025 to 2030. Notably, cordless robotic pool cleaners recorded far higher average annual growth of 67.9% from 2020 to 2025, with their market penetration climbing above 50% for the first time in 2025 to 51.5%. That rate is forecast to rise to 71% by 2030, underscoring the steady displacement of models connected via cords.

Its leading position in cordless products aside, another strategic maneuver has bolstered Wybotics' recent profitability. The company historically operated mostly as an original design manufacturer (ODM) making pool cleaners for other brands. But it made a strategic pivot in 2023, when it leveraged e-commerce to start selling its own Wybot and Winny Pool Cleaner brands directly to consumers in North America, Europe and Asia. Notably, the company's revenues from sales on e-commerce giant Amazon currently make up around half of its total revenue.

As its own brands gained traction, that business has grown from 67.1% of its revenue in 2023 to 83.5% last year. The historically dominant ODM segment has moved in the other direction, falling from 31.1% to just 15.6% over that time. The shift has provided a lift for the company's gross margin, since self-branded sales typically carry far higher margins than ODM sales. As a case in point, the company's gross margin for its branded products sat at 65% last year, compared to just 50% for ODM merchandise.

Wybotics has posted strong top line growth in the last three years, with its revenue more than doubling from 378 million yuan ($55.4million) in 2023 to 810 million yuan last year, equating to average annual growth of 46.6%. Its gross margin has similarly climbed on the back of the growing contribution of its branded business, rising from 57.5% in 2023 to 62.9% last year.

The company's bottom line profit has also grown steadily, including a 42.4% rise last year to 100 million yuan from 70.51 million yuan the previous year.

Rising marketing costs

It's important to highlight that Wybots' selling and marketing expenses have risen substantially in recent years as it focused on branded sales, which typically require more advertising and promotions to attract individual consumers. Such expenses roughly tripled from about 97 million yuan in 2023 to 303 million yuan in 2025 as its branded business took off.

As it jockeys to become Hong Kong's first robotic pool equipment stock, we should note this isn't the first time the company has tried to list on China's domestic markets in Shanghai and Shenzhen, as well as in Hong Kong. But all those efforts have come up dry so far.

Wybotics initially sought to list on Shenzhen's ChiNext board for high-growth companies in October 2022, but it ultimately withdrew its application by March 2024 after failing to complete the deal. Later, in September last year, the company filed to list on the Hong Kong Stock Exchange, only to see that bid stumble as well after it failed to complete the IPO within the mandated six-month timeframe. The company is hoping for better luck with its latest Hong Kong application.

Global leader in the red

Wybotics' two largest global rivals are both already publicly traded. Israel-listed industry leader Maytronics (MTRN.TA) reported a net loss of 222 million Israeli new shekels ($74.3 million) last year, citing foreign exchange volatility and severe weather across North America as headwinds. That pool of red ink has taken its toll on the company's stock, draining its current market capitalization to around $119 million.

The industry's second-largest player is Spain-listed Fluidra (FDR.MC), whose performance has been comparatively stronger, including a 2025 profit that rose 28% to 176 million euros ($205.6 million). Fluidra's current market capitalization of approximately $4.63 billion and price-to-earnings (P/E) ratio of about 22 times are more likely benchmarks for Wybotics when gauging its own prospective IPO valuation. Yet, it's worth noting that both rivals predominantly focus on corded equipment, and neither were among the top five cordless players globally as of 2024.

The Hong Kong market currently lacks good comparables for a company like Wybotics. But pricing at a similar valuation to Fluidra's — with perhaps a premium for its edge in the cordless segment — could provide a compelling investment opportunity for investors attracted by the Wybotics' strong growth potential.

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Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.