Equity Analyst, LightStream Research

Aqila Ali

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Farasis Energy Gan Zhou   / Equity Capital Markets

<p>Last month, <a href="https://www.smartkarma.com/entities/farasis-energy-gan-zhou-co-a" target="_blank" data-smartkarma-citation="entities:28385:1" rel="noopener">Farasis Energy Gan Zhou Co-A (1748530D CH)</a>, an advanced lithium-ion battery technology company, reported its plan to IPO 214.1mn shares on Shanghai’s tech board and submitted a prospectus to the Shanghai Stock Exchange aiming to raise funds for its lithium-battery production project and other operating expenses. Although approval of the application is still pending, we have taken a quick look at this battery maker.</p><p>Our key points are:</p><ul>
<li>Farasis has been in the market for a relatively long time but is still small as a business and has reported net losses over the recent two years.</li>
<li>Battery cells produced using the carbon-neutral process gives the company some recognition and have earned the company orders from Daimler.</li>
<li>However, the industry leaders like Panasonic have also started moving towards the use of such zero-emission production methods.</li>
<li>The risks involved with the IPO appear quite high, given the continuous losses, slowdown in China’s EV market post-subsidy cut and the mounting trade tension with the US.</li>
</ul><div class="content-highlight"><p><em>We like the renewable energy production process for Li-ion batteries and the possibilities of recycling therewith and believe the true value of the company may lie in its willingness to be acquired by a larger player with the financial resources to fully utilise its technological advantages.</em></p></div>

Last month, Farasis Energy Gan Zhou Co-A (1748530D CH), an advanced lithium-ion battery technology company, reported its plan to IPO 214.1mn shares on Shanghai’s tech board and submitted a prospectus to the Shanghai Stock Exchange aiming to raise funds for its lithium-battery production project and other operating expenses. Although approval of the application is still pending, we have taken a quick look at this battery maker.Our key points are:
Farasis has been in the market for a relatively long time but is still small as a business and has reported net losses over the recent two years.
Battery cells produced using the carbon-neutral process gives the company some recognition and have earned the company orders from Daimler.
However, the industry leaders like Panasonic have also started moving towards the use of such zero-emission production methods.
The risks involved with the IPO appear quite high, given the continuous losses, slowdown in China’s EV market post-subsidy cut and the mounting trade tension with the US.
We like the renewable energy production process for Li-ion batteries and the possibilities of recycling therewith and believe the true value of the company may lie in its willingness to be acquired by a larger player with the financial resources to fully utilise its technological advantages.

Farasis IPO: Carbon Neutral Production Process Is Its Key

China

Farasis Energy (Gan Zhou) Co., Ltd. operates as a new energy vehicle power battery system solutions provider. The Company develops, manufactures, and distributes lithium-Ion battery cells, modules, and battery packs, and battery management systems. Farasis Energy (Gan Zhou) serves clients across worldwide.

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Farasis Energy Gan Zhou (688567 CH)

Farasis IPO: Carbon Neutral Production Process Is Its Key

Last month, Farasis Energy Gan Zhou Co-A (1748530D CH), an advanced lithium-ion battery technology company, reported its plan to IPO 214.1mn shares...

Aqila Ali

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