Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

Hon Hai Precision Industry / Equity Bottom-Up

<ul><li>Foxconn increases investments in Zhengzhou, shifting focus to electric vehicles from phones.</li><li>Home solar energy storage options becoming more affordable with incentives.</li><li>Luxgen's N7 LR deliveries to start in November, Hikvision's RD department facing layoffs.</li></ul>

Foxconn increases investments in Zhengzhou, shifting focus to electric vehicles from phones.Home solar energy storage options becoming more affordable with incentives.Luxgen's N7 LR deliveries to start in November, Hikvision's RD department facing layoffs.

Tech Supply Chain Tracker (15-Oct-2024): Foxconn doubles down on Zhengzhou investments.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/4paradigm" target="_blank" data-smartkarma-citation="entities:34465:1" rel="noopener">4Paradigm (1764934D HK)</a>, a leader in enterprise artificial intelligence (AI) in China, has launched an HKEx IPO to raise up to US$144 million.</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/4paradigm-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:112776" rel="noopener">4Paradigm IPO: The Bull Case</a> and <a href="https://www.smartkarma.com/insights/4paradigm-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:112894" rel="noopener">4Paradigm IPO: The Bear Case</a>. </li>
<li>In this note, we discuss forecasts and valuation. Our analysis suggests that the IPO price range of HK$55.60-61.16 per share is unattractive. We would give the IPO a pass.</li>
</ul>



4Paradigm (1764934D HK), a leader in enterprise artificial intelligence (AI) in China, has launched an HKEx IPO to raise up to US$144 million.
We previously discussed the IPO in 4Paradigm IPO: The Bull Case and 4Paradigm IPO: The Bear Case. 
In this note, we discuss forecasts and valuation. Our analysis suggests that the IPO price range of HK$55.60-61.16 per share is unattractive. We would give the IPO a pass.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/4paradigm" target="_blank" data-smartkarma-citation="entities:34465:1" rel="noopener">4Paradigm (1764934D HK)</a>, a leader in enterprise artificial intelligence (AI) in China, is pre-marketing a US$150-200 million HKEx IPO.</li>
<li>In <a href="https://www.smartkarma.com/insights/4paradigm-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:112776" rel="noopener">4Paradigm IPO: The Bull Case</a>, we highlighted the key elements of the bull case. In this note, we outline the bear case.</li>
<li>The bear case rests on Sage Platform’s rapid slowdown, high customer concentration risk, recent gross margin pressure, FCF burn, rising cash collection cycle and BIS entity list designation. </li>
</ul>



4Paradigm (1764934D HK), a leader in enterprise artificial intelligence (AI) in China, is pre-marketing a US$150-200 million HKEx IPO.
In 4Paradigm IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on Sage Platform’s rapid slowdown, high customer concentration risk, recent gross margin pressure, FCF burn, rising cash collection cycle and BIS entity list designation. 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/4paradigm" target="_blank" data-smartkarma-citation="entities:34465:1" rel="noopener">4Paradigm (1764934D HK)</a>, a leader in enterprise artificial intelligence (AI) in China, is pre-marketing a US$150-200 million HKEx IPO.  </li>
<li>4Paradigm was the largest player by revenue in China’s platform-centric decision-making AI market with a market share of 22.6% in 2022, according to CIC. </li>
<li>The bull case rests on the success in increasing key account customer numbers, net dollar expansion rates, improving revenue visibility, strong growth in application development services and reducing loss margin.</li>
</ul>



4Paradigm (1764934D HK), a leader in enterprise artificial intelligence (AI) in China, is pre-marketing a US$150-200 million HKEx IPO.  
4Paradigm was the largest player by revenue in China’s platform-centric decision-making AI market with a market share of 22.6% in 2022, according to CIC. 
The bull case rests on the success in increasing key account customer numbers, net dollar expansion rates, improving revenue visibility, strong growth in application development services and reducing loss margin.


External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Hikvision delivered a weaker than expected FY1Q23 with revenue of RMB16.2bn (-2% YoY) and net profit of RMB1.81bn (-21% YoY).</li><li>Sequential improvement in top-line (vs -9% YoY in FY4Q22) and GPM (+1.4 ppts YoY) were the bright spots.</li><li>Hikvision will focus on quality growth in FY23E with better control on project profitability, headcount (+10% YoY in FY22, stable in FY23E) and opex. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hikvision delivered a weaker than expected FY1Q23 with revenue of RMB16.2bn (-2% YoY) and net profit of RMB1.81bn (-21% YoY).Sequential improvement in top-line (vs -9% YoY in FY4Q22) and GPM (+1.4 ppts YoY) were the bright spots.Hikvision will focus on quality growth in FY23E with better control on project profitability, headcount (+10% YoY in FY22, stable in FY23E) and opex. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hikvision (002415 CH) – Taking time to recover

China

Hangzhou Hikvision Digital Technology Co., Ltd develops, manufactures and sells video surveillance products.  The Company manufactures video and audio compression card, network hard disk video recorders, video servers, cameras, network storage, and other digital products.

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Hangzhou Hikvision (002415 CH)

Tech Supply Chain Tracker (15-Oct-2024): Foxconn doubles down on Zhengzhou investments.

Foxconn invests more in China for electric vehicles, Formosa Smart Energy innovates storage with solid-state batteries, India aims to be...

Tech Supply Chain Tracker

4Paradigm IPO: Valuation Insights

4Paradigm has launched an HKEx IPO to raise up to US$144m. Our analysis suggests that the IPO price range is unattractive. We would give the IPO a...

Arun George

4Paradigm IPO: The Bear Case

The bear case rests on Sage Platform’s rapid slowdown, high customer concentration risk, recent gross margin pressure, FCF burn, rising cash...

Arun George

4Paradigm IPO: The Bull Case

The bull case rests on the success in increasing key customer numbers, net dollar expansion rates, improving visibility, strong growth in...

Arun George

Hikvision (002415 CH) – Taking time to recover

Hikvision delivered a weaker than expected FY1Q23 with revenue of RMB16.2bn (-2% YoY) and net profit of RMB1.81bn (-21% YoY).

CMB International

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