Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

Lalatech Holdings Co Ltd / Equity Capital Markets

<ul>
<li>Lalatech Holdings filed for an IPO in March. I have tried to come at an IPO valuation for the company using a mix of methodologies: EV/Revenue, EV/GTV and EV/Gross Profit.</li>
<li>Taking a weighted average of peer group multiples-based valuation methodologies, I arrived at a ~$7B IPO valuation for Lalatech Holdings, including ~$1.65B of cash and cash equivalents.</li>
<li>From a peer group perspective, I arrived at a fair IPO valuation close to ~$7B, using a ~5x EV/CY22 Revenue, ~0.7x EV/CY22 GTV, and a 10x EV/CY22 Gross Profit multiple. </li>
</ul>


Lalatech Holdings filed for an IPO in March. I have tried to come at an IPO valuation for the company using a mix of methodologies: EV/Revenue, EV/GTV and EV/Gross Profit.
Taking a weighted average of peer group multiples-based valuation methodologies, I arrived at a ~$7B IPO valuation for Lalatech Holdings, including ~$1.65B of cash and cash equivalents.
From a peer group perspective, I arrived at a fair IPO valuation close to ~$7B, using a ~5x EV/CY22 Revenue, ~0.7x EV/CY22 GTV, and a 10x EV/CY22 Gross Profit multiple. 


Lalatech IPO Valuation Analysis: Discount To Last Round Valuation Is Justified

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

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 Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> ’s online games business grew for the first time in 1Q2023 (+10.8% YoY) after four consecutive quarters of YoY decline followed by regulatory hurdles.</li>
<li>Our app data analysis reveals that online games revenue would grow by about 12% YoY in 2Q2023E driven by increases in both domestic and international games revenues.</li>
<li>On Monday, it was also reported that Tencent is in the process of acquiring a majority stake in Polish gaming studio Techland, expanding the long list of overseas gaming acquisitions.</li>
</ul>



Tencent (700 HK) ’s online games business grew for the first time in 1Q2023 (+10.8% YoY) after four consecutive quarters of YoY decline followed by regulatory hurdles.
Our app data analysis reveals that online games revenue would grow by about 12% YoY in 2Q2023E driven by increases in both domestic and international games revenues.
On Monday, it was also reported that Tencent is in the process of acquiring a majority stake in Polish gaming studio Techland, expanding the long list of overseas gaming acquisitions.


Tencent: Online Games Continue to Recover in 2Q2023E

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Robosense Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-robosense-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:39903:1" rel="noopener">Robosense Technology (ROBO HK)</a> (RT) is looking to raise around US$400m (estimated) in its upcoming Hong Kong IPO. </li>
<li>As of Mar 23, it had earned design wins for mass production of LiDAR for 52 vehicles with 21OEMs and Tier 1 suppliers, ranking No. 1 globally, according to CIC.</li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



Robosense Technology (ROBO HK) (RT) is looking to raise around US$400m (estimated) in its upcoming Hong Kong IPO. 
As of Mar 23, it had earned design wins for mass production of LiDAR for 52 vehicles with 21OEMs and Tier 1 suppliers, ranking No. 1 globally, according to CIC.
In this note, we talk about the not-so-positive aspects of the deal.


Robosense Technology Pre-IPO - The Negatives - Not a Whole Lot of Earnings

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Black Sesame International Holding / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/black-sesame-technologies-inc" target="_blank" data-smartkarma-citation="entities:39894:1" rel="noopener">Black Sesame Technologies (BLACKSES HK)</a> is looking to raise around US$300m in its upcoming Hong Kong IPO.</li>
<li>Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.</li>
<li>In this note, we will talk about the not so positive aspects of the deal.</li>
</ul>



Black Sesame Technologies (BLACKSES HK) is looking to raise around US$300m in its upcoming Hong Kong IPO.
Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.
In this note, we will talk about the not so positive aspects of the deal.


Black Sesame Pre-IPO - The Negatives - Losses Remain Wide and Suffers from a Concentration Risk

Ethan Aw

<ul>
<li>
<a href="https://www.smartkarma.com/entities/qiniu-limited" target="_blank" data-smartkarma-citation="entities:39897:1" rel="noopener">Qiniu Limited (1045102D CH)</a> is looking to raise about US$200m in its upcoming Hong Kong IPO.</li>
<li>Qiniu is an intelligent audiovisual service provider. According to iResearch, the firm is the third largest audiovisual platform as a service (PaaS) provider in China in terms of FY22 revenue.</li>
<li>Qiniu’s revenue has primarily been driven by its MPaaS segment over the track record period. However, the firm’s losses are still widening while its balance sheet health deteriorates. </li>
</ul>



Qiniu Limited (1045102D CH) is looking to raise about US$200m in its upcoming Hong Kong IPO.
Qiniu is an intelligent audiovisual service provider. According to iResearch, the firm is the third largest audiovisual platform as a service (PaaS) provider in China in terms of FY22 revenue.
Qiniu’s revenue has primarily been driven by its MPaaS segment over the track record period. However, the firm’s losses are still widening while its balance sheet health deteriorates. 


Qiniu Pre-IPO - Widening Losses and Dwindling Market Share

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent Holdings (ADR) (TCEHY US)

Lalatech IPO Valuation Analysis: Discount To Last Round Valuation Is Justified

Lalatech Holdings is expected to go public this year and may raise $1B in the upcoming Hong Kong IPO. My analysis suggests a significant discount...

Andrei Zakharov

Tencent: Online Games Continue to Recover in 2Q2023E

Our app data analysis suggests that Tencent's games revenues have further recovered in 2Q2023 incl. domestic games. The launch of Valorant in...

Shifara Samsudeen, FCMA, CGMA

Robosense Technology Pre-IPO - The Negatives - Not a Whole Lot of Earnings

Robosense Technology is looking to raise around US$400m (estimated) in its upcoming Hong Kong IPO. In this note, we talk about the not-so-positive...

Sumeet Singh

Black Sesame Pre-IPO - The Negatives - Losses Remain Wide and Suffers from a Concentration Risk

Black Sesame Technologies (BLACKSES HK) is looking to raise around US$300m in its upcoming Hong Kong IPO. In this note, we will talk about the not...

Clarence Chu

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Lalatech IPO Valuation Analysis: Discount To Last Round Valuation Is Justified

Lalatech Holdings is expected to go public this year and may raise $1B in the upcoming Hong Kong IPO. My analysis suggests a significant discount...

Andrei Zakharov

Tencent: Online Games Continue to Recover in 2Q2023E

Our app data analysis suggests that Tencent's games revenues have further recovered in 2Q2023 incl. domestic games. The launch of Valorant in...

Shifara Samsudeen, FCMA, CGMA

Robosense Technology Pre-IPO - The Negatives - Not a Whole Lot of Earnings

Robosense Technology is looking to raise around US$400m (estimated) in its upcoming Hong Kong IPO. In this note, we talk about the not-so-positive...

Sumeet Singh

Black Sesame Pre-IPO - The Negatives - Losses Remain Wide and Suffers from a Concentration Risk

Black Sesame Technologies (BLACKSES HK) is looking to raise around US$300m in its upcoming Hong Kong IPO. In this note, we will talk about the not...

Clarence Chu

Qiniu Pre-IPO - Widening Losses and Dwindling Market Share

Qiniu Limited (1045102D CH) is looking to raise about US$200m in its upcoming Hong Kong IPO. Its revenue has primarily been driven by its MPaaS...

Ethan Aw