In today’s briefing:
- Leapmotor Pre-IPO – Thoughts on Valuation
- Onewo IPO: The Bull Case
- TBO Tek Pre-IPO – Recovery Underway Post-COVID
- Pre-IPO Beijing Continent Pharmaceuticals – The Orphan Drug Pioneer Needs to Expand Overseas
Leapmotor Pre-IPO – Thoughts on Valuation
- Leapmotor (LM) aims to raise around US$1.5bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.
- As of end Jun 22, it had delivered a total of 104,829 cars with most of its sales coming from its mini units, T03.
- In our previous note, we spoke about the company’s past performance, PHIP updates and undertook a peer comparison. In this note, we will talk about valuations.
Onewo IPO: The Bull Case
- Onewo Space-Tech (ONEWO HK), China Vanke (000002 CH)’s property management unit, has begun pre-marketing a US$2.0 billion HKEx IPO.
- Onewo ranked first in China’s property management services market as measured by revenue from basic property management services, with a market share of 4.28% in 2021.
- The key elements of the bull case rest on the solid financial health of the parent, strong growth, growth runway from undelivered GFA, share gains, renewal rates and cash generation.
TBO Tek Pre-IPO – Recovery Underway Post-COVID
- TBO Tek (0395045D IN) is looking to raise approximately US$285m in its upcoming India IPO.
- TBO Tek is a global travel distribution platform. Its two-sided technology platform serves companies involved in the travel industry such as hotels, airlines, travel agencies and travel management companies.
- The firm’s profitability recovery is underway post-COVID. However, the implied take rate of its largest revenue contributor (Hotel and Ancillary) appears to be declining despite the overall increase in GTV.
Pre-IPO Beijing Continent Pharmaceuticals – The Orphan Drug Pioneer Needs to Expand Overseas
- With favorable policies and improved intellectual property protection, investors’ attitude towards rare diseases in China has changed significantly and become more interested in this field.
- Since no new candidates would be commercialized until 2024, Beijing Continent Pharmaceuticals (CPH HK) could face increasing competition and financial pressure. The breakthrough point is to develop overseas markets.
- In terms of valuation, Continent is better than CANbridge Pharmaceuticals (1228 HK), so it is expected to have higher valuation than CANbridge after listing.
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