In today’s briefing:
- CALB IPO: Valuation Insights
- Porsche IPO Valuation Analysis
- Socionext Pre-IPO Valuation – Thoughts on Valuation
- Leapmotor IPO: Forecasts and Valuation
- Growatt Technology IPO: The Bull Case
- Edianyun Pre-IPO Tearsheet
- Pre-IPO Laekna – Low Cost Performance of License-In Mode Leads to A “Rethink” Of Investment Value
CALB IPO: Valuation Insights
- CALB (CALBLZ CH) has launched its HKEx listing at HK$38.00-51.00 per share to raise up to US$1.7 billion. Books are open from 23 to 28 September.
- We previously discussed the IPO in CALB IPO: The Bull Case, CALB IPO: The Bear Case, CALB IPO: Updates Support the Bull Case, CALB IPO: What’s It Worth?.
- CALB should be, at least, valued in line with the median peer multiples. CALB is attractively valued at the IPO price range. We would participate.
Porsche IPO Valuation Analysis
- Our base case valuation of Porsche is EV of 83.6 billion EUR, implied market cap of 88.9 billion EUR, and target base case price target of 98 EUR per share.
- This represents 23% higher than the mid-point of the IPO price range. Given the relative solid upside, we have a Positive View of the Porsche IPO.
- The market related risk is clearly the biggest risk for the Porsche IPO right now in our view.
Socionext Pre-IPO Valuation – Thoughts on Valuation
- Socionext (6526 JP) is looking to raise up to US$285m in its Japan IPO.
- As stated in our earlier notes, Socionext has been growing its number of design wins per year historically, which should aid to its near/medium term sales and profitability.
- In our previous note, we undertook a peer comparison. In this note, we will talk about valuations.
Leapmotor IPO: Forecasts and Valuation
- Leapmotor (2007699D HK) is a leading smart EV company in China. The company plans to raise net proceeds of US$904m through its HKEx IPO.
- In our previous insight Leapmotor IPO: Stuck in the Middle , we concluded that the company will have to compromise on margins to grow its top line.
- Our valuation analysis suggests that Leapmotor’s shares are not even attractive at the lower-end of the IPO price range and the premium vs local peers is hard to justify.
Growatt Technology IPO: The Bull Case
- Growatt Technology (1833969D CH), a leading PV inverters manufacturer, will seek a listing hearing for a US$1 billion HKEx IPO in October, according to press reports.
- According to Frost & Sullivan, in 2021, Growatt was the third-largest player in the global PV inverter market with a 6.8% market share in shipments.
- The key elements of the bull case rest on a large market, improving sector market sentiment, and sector-leading revenue growth and profitability.
Edianyun Pre-IPO Tearsheet
- Edianyun (1480259D CH) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC.
- Edianyun is an office IT integrated solution provider in China, providing one-stop office IT services on a subscription basis to enterprise customers consisting mainly of SMEs.
- As of 30th Jun 2022 (6M22), it had approximately 39,525 subscribing customers and 1.1m devices under subscription.
Pre-IPO Laekna – Low Cost Performance of License-In Mode Leads to A “Rethink” Of Investment Value
- Laekna’s development mode is mainly based on license-in. However, the increasingly low cost performance of in-licensed products and potential legal risks have made the capital “reconsider”.
- Both two core products LAE002 and LAE001 have to face the challenge of market acceptance and potential R&D failure risks. China’s NRDL negotiation further casts doubts on their commercialization prospects.
- So, the investment in Laekna may not generate expected return. Together with the unfriendly external environment, we are conservative about Laekna (LAEKNA HK)’s outlook at the current stage.
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