HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

<ul>
<li>At the top end of the price range (HK$6.95), <a href="https://www.smartkarma.com/entities/hashkey-holdings-limited" target="_blank" data-smartkarma-citation="entities:40847:1" rel="noopener">HashKey (3887 HK)</a>'s IPO equals a FY26F P/S of 14.9x, and this is not a particularly appealing level. </li>
<li>While it is the industry leader in the region and Hong Kong, it is expected to stay in the red for FY25-27, making a PER comparison meaningless. </li>
<li>Tiny public shareholder base, cryptocurrency volatilities, and the increasingly competitive environment heightened risks. Only a low-end IPO price, or 12.7x FY26F P/S, is attractive.</li>
</ul>


At the top end of the price range (HK$6.95), HashKey (3887 HK)'s IPO equals a FY26F P/S of 14.9x, and this is not a particularly appealing level. 
While it is the industry leader in the region and Hong Kong, it is expected to stay in the red for FY25-27, making a PER comparison meaningless. 
Tiny public shareholder base, cryptocurrency volatilities, and the increasingly competitive environment heightened risks. Only a low-end IPO price, or 12.7x FY26F P/S, is attractive.


Hashkey Holdings (3887 HK) IPO: Pricing Uncertainties Expensively

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Bakkt Holdings, a crypto platform company, has recently reported its financial results for the first quarter of 2024, showcasing various strengths and facing some challenges as it explores potential sale opportunities.</li><li>The CEO emphasized the focus on growing the client network, enhancing the product portfolio, and aligning costs with strategic priorities.</li><li>The CFO outlined financial details, stressing cost management and asset growth.</li></ul>

Bakkt Holdings, a crypto platform company, has recently reported its financial results for the first quarter of 2024, showcasing various strengths and facing some challenges as it explores potential sale opportunities.The CEO emphasized the focus on growing the client network, enhancing the product portfolio, and aligning costs with strategic priorities.The CFO outlined financial details, stressing cost management and asset growth.

Bakkt Holdings Weighing A Potential Sale But Can It Get Acquired? At What Value?  - Financial Forecasts

SPAC Deep Dive, subSPAC

subSPAC

SPAC Deep Dive

Each week we’ll identify and break down for you SPACs that are capturing market share and making an impact.

Thematic (Sector/Industry)

<ul>
<li>Bitcoin Depot, a North American Bitcoin ATM firm, took a significant leap last week, diving into public markets through an $885 million SPAC transaction.</li>
<li>This move marks the company as the first pure-play operator in the industry to pursue such an avenue, a distinct endeavor in a field dotted with complexity and uncertainty.</li>
<li>Within the past few years, we've seen several crypto SPAC deals, such as cryptocurrency miner Core Scientific and digital rewards and crypto platform Bakkt Holdings, successfully step into the public arena.</li>
</ul>


Bitcoin Depot, a North American Bitcoin ATM firm, took a significant leap last week, diving into public markets through an $885 million SPAC transaction.
This move marks the company as the first pure-play operator in the industry to pursue such an avenue, a distinct endeavor in a field dotted with complexity and uncertainty.
Within the past few years, we've seen several crypto SPAC deals, such as cryptocurrency miner Core Scientific and digital rewards and crypto platform Bakkt Holdings, successfully step into the public arena.


United States

Bakkt Holdings, Inc. operates as a software company. The Company develops digital asset marketplace that enables consumers to buy, sell, store, and spend digital assets. Bakkt Holdings serves customers worldwide.

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Bakkt (BKKT US)

Hashkey Holdings (3887 HK) IPO: Pricing Uncertainties Expensively

HashKey's IPO at HK$6.95 equals 14.9x FY26F P/S, unappealing due to a tiny public shareholder base, crypto volatilities, and a competitive...

Osbert Tang, CFA

Bakkt Holdings Weighing A Potential Sale But Can It Get Acquired? At What Value? - Financial Forecasts

Bakkt Holdings, a crypto platform company, has recently reported its financial results for the first quarter of 2024, showcasing various strengths...

Baptista Research

Crypto Frontier

Bitcoin Depot, a North American Bitcoin ATM firm, took a significant leap last week, diving into public markets through an $885 million SPAC...

subSPAC

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hashkey Holdings (3887 HK) IPO: Pricing Uncertainties Expensively

​HashKey's IPO at HK$6.95 equals 14.9x FY26F P/S, unappealing due to a tiny public shareholder base, crypto volatilities, and a competitive...

Osbert Tang, CFA

Bakkt Holdings Weighing A Potential Sale But Can It Get Acquired? At What Value? - Financial Forecasts

Bakkt Holdings, a crypto platform company, has recently reported its financial results for the first quarter of 2024, showcasing various strengths...

Baptista Research

Crypto Frontier

Bitcoin Depot, a North American Bitcoin ATM firm, took a significant leap last week, diving into public markets through an $885 million SPAC...

subSPAC

HashKey's IPO at HK$6.95 equals 14.9x FY26F P/S, unappealing due to a tiny public shareholder base, crypto volatilities, and a competitive...