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

<div><p><a href="https://www.smartkarma.com/entities/li-auto-inc" target="_blank" data-smartkarma-citation="entities:28812:1" rel="noopener">Li Auto Inc. (LI US)</a> is the first company to successfully commercialise EREVs (extended-range electric vehicle) in China, the Li ONE. Li ONE is a six-seat, large premium electric SUV which began volume production and deliveries in November 2019 and December 2019, respectively. Li Auto has launched its IPO at an indicative price range of $8.00-10.00 per ADS. At the mid-point of the IPO price range, Li Auto will raise net proceeds of $813.2 million at a fully diluted market cap of $7.9 billion. Also, Li Auto will raise net proceeds of $380.0 million from concurrent private placements with existing shareholders. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/li-auto-ipo-initiation-on-a-charge" target="_blank" rel="noopener">our initiation note</a>, we stated that the IPO seems to be timed to take advantage of the surging share prices of NEV (new energy passenger vehicles) manufacturers such as <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> and <a href="https://www.smartkarma.com/entities/nio-inc" target="_blank" data-smartkarma-citation="entities:27399:1" rel="noopener">NIO Inc (NIO US)</a>. On balance, for investors seeking exposure to the China NEV sector, Li Auto’s fundamentals are attractive, in our view. Our valuation analysis suggests that the price range is attractive. </p></div></div></div>

Li Auto Inc. (LI US) is the first company to successfully commercialise EREVs (extended-range electric vehicle) in China, the Li ONE. Li ONE is a six-seat, large premium electric SUV which began volume production and deliveries in November 2019 and December 2019, respectively. Li Auto has launched its IPO at an indicative price range of $8.00-10.00 per ADS. At the mid-point of the IPO price range, Li Auto will raise net proceeds of $813.2 million at a fully diluted market cap of $7.9 billion. Also, Li Auto will raise net proceeds of $380.0 million from concurrent private placements with existing shareholders. In our initiation note, we stated that the IPO seems to be timed to take advantage of the surging share prices of NEV (new energy passenger vehicles) manufacturers such as Tesla Motors (TSLA US) and NIO Inc (NIO US). On balance, for investors seeking exposure to the China NEV sector, Li Auto’s fundamentals are attractive, in our view. Our valuation analysis suggests that the price range is attractive. 

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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 Bottom-Up

<p>Nikola Corporation Executive Chairman Trevor Milton has been doing the rounds with social media interviews and recently spoke to noted Tesla sceptic, @TeslaCharts on his podcast. The discussion covered some interesting topics such as grid balancing and other methods to reduce hydrogen costs and Nikola’s unique business concept. In light of the 59% drop in the stock price in just over a month, we examine these topics below.</p>

Nikola Corporation Executive Chairman Trevor Milton has been doing the rounds with social media interviews and recently spoke to noted Tesla sceptic, @TeslaCharts on his podcast. The discussion covered some interesting topics such as grid balancing and other methods to reduce hydrogen costs and Nikola’s unique business concept. In light of the 59% drop in the stock price in just over a month, we examine these topics below.

Nikola – Grid Balancing, Hydrogen and Vertical Integration

United States

Nikola Corporation operates as a zero-emissions transportation and infrastructure solution provider. The Company is a designer and manufacturer of battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure.

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Nikola Corp (NKLA US)

Li Auto IPO: Valuation Insights

Li Auto Inc. (LI US) is the first company to successfully commercialise EREVs (extended-range electric vehicle) in China, the Li ONE. Li ONE is a...

Arun George

Nikola – Grid Balancing, Hydrogen and Vertical Integration

Nikola Corporation Executive Chairman Trevor Milton has been doing the rounds with social media interviews and recently spoke to noted Tesla...

Mio Kato

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