$HOLI: Hollysys Automation Technologies, Ltd. - Common Stock

Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) is a leading provider of industrial automation solutions in China and other global markets. The company offers a wide range of products and services, including distributed control systems (DCS), programmable logic controllers (PLCs), human-machine interfaces (HMIs), and industrial software. Hollysys's solutions are used in a variety of industries, including power generation, petrochemicals, oil and gas, and manufacturing.

Hollysys was founded in 1993 and has grown rapidly in recent years. The company's revenue has increased from RMB 1.2 billion in 2015 to RMB 5.8 billion in 2022. Hollysys is profitable and has a strong balance sheet.

Investment highlights

• Hollysys is a leader in the growing Chinese industrial automation market.
• The company has a strong track record of growth and profitability.
• Hollysys is well-positioned to benefit from the continued growth of the Chinese economy and the increasing demand for industrial automation solutions in China and other global markets.

Investment risks

• The Chinese industrial automation market is competitive and Hollysys faces competition from both domestic and international players.
• Hollysys's business is cyclical and is therefore exposed to the risks of a slowdown in the Chinese economy or in the industries it serves.
• The company's sale to a financial sponsor could lead to changes in management and strategy, which could impact the company's future performance.

Overall, Hollysys is a well-established and profitable company with a strong track record of growth. The company is well-positioned to benefit from the continued growth of the Chinese industrial automation market. However, investors should be aware of the competitive landscape and the cyclical nature of the company's business.