HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Biren Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-biren-intelligent-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:39934:1" rel="noopener">Shanghai Biren Intelligent Tech (6082 HK)</a> is expected to receive an overwhelming response in its Hong Kong IPO. The public offer is reported to be at least 513.2x oversubscribed.</li>
<li>Since it will remain loss-making in FY27F, we calculate its fair value at HK$21.72 by applying the average HA discount and a 20% discount to its peer P/S multiple.  </li>
<li>Given that its FY27F revenue is smaller than MetaX Integrated Circuit (688802 CH), MetaX's P/S of 41.8x serves as Biren's ceiling, and any price over HK$23.75 appears expensive. </li>
</ul>



Shanghai Biren Intelligent Tech (6082 HK) is expected to receive an overwhelming response in its Hong Kong IPO. The public offer is reported to be at least 513.2x oversubscribed.
Since it will remain loss-making in FY27F, we calculate its fair value at HK$21.72 by applying the average HA discount and a 20% discount to its peer P/S multiple.  
Given that its FY27F revenue is smaller than MetaX Integrated Circuit (688802 CH), MetaX's P/S of 41.8x serves as Biren's ceiling, and any price over HK$23.75 appears expensive. 


Biren Technology (6082 HK) IPO: What Valuations?

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Biren Technology, a Shanghai-based developer of GPGPU chips and GPGPU-based intelligent computing solutions, is expected to price the offering next week.</li>
<li>The company’s Global Offering puts the initial price range per share at HK$17.00 to HK$19.60, implying a market cap of ~HK$44.6B or ~$5.7B at midpoint on a fully diluted basis.   </li>
<li>After enjoying years of technological and market share dominance in the GPU space in China, NVIDIA faces growing competition from “four little dragons” – MetaX, Moore Threads, Biren and Enflame.</li>
</ul>


Biren Technology, a Shanghai-based developer of GPGPU chips and GPGPU-based intelligent computing solutions, is expected to price the offering next week.
The company’s Global Offering puts the initial price range per share at HK$17.00 to HK$19.60, implying a market cap of ~HK$44.6B or ~$5.7B at midpoint on a fully diluted basis.   
After enjoying years of technological and market share dominance in the GPU space in China, NVIDIA faces growing competition from “four little dragons” – MetaX, Moore Threads, Biren and Enflame.


Biren Technology IPO (6082.HK): Signals Investor Conviction With Higher Valuation Vs. Prior Funding

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-biren-intelligent-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:39934:1" rel="noopener">Shanghai Biren Intelligent Technology,</a> a GPGPU chips and computing solutions provider, aims to raise up to US$624m in its Hong Kong listing.</li>
<li>According to CIC, Biren was the first company in China to package dual AI computing dies using 2.5D chiplet technology and the first to support advanced interconnection specifications.</li>
<li>We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.</li>
</ul>



Shanghai Biren Intelligent Technology, a GPGPU chips and computing solutions provider, aims to raise up to US$624m in its Hong Kong listing.
According to CIC, Biren was the first company in China to package dual AI computing dies using 2.5D chiplet technology and the first to support advanced interconnection specifications.
We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.


Shanghai Biren Technology IPO - It's Not Cheap, but Neither Are Its Peers

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-biren-intelligent-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:39934:1" rel="noopener">Shanghai Biren Intelligent Technology</a>, a GPGPU chips and computing solutions provider, aims to raise around US$600m in its Hong Kong listing.</li>
<li>According to CIC, Biren was the first company in China to package dual AI computing dies using 2.5D chiplet technology and the first to support advanced interconnection specifications.</li>
<li>In this note, we look at the company’s past performance.</li>
</ul>



Shanghai Biren Intelligent Technology, a GPGPU chips and computing solutions provider, aims to raise around US$600m in its Hong Kong listing.
According to CIC, Biren was the first company in China to package dual AI computing dies using 2.5D chiplet technology and the first to support advanced interconnection specifications.
In this note, we look at the company’s past performance.


Shanghai Biren Technology Pre-IPO - Growing Rapidly, Sometimes

<ul>
<li>Biren Technology, a Shanghai-based fabless chip design company that develops intelligent processors for GPU and DSA computation architectures, filed to go public in Hong Kong.  </li>
<li>Biren Technology was founded in 2019 by CEO &amp; Chairman Mr. Wen Zhang, who previously worked at AI software company SenseTime Group Inc.   </li>
<li>This is a red-hot upcoming IPO to watch, in my view. Moore Threads and MetaX Integrated Circuits have recently raised $1.1B and ~$600M in their public share offerings in Shanghai.</li>
</ul>


Biren Technology, a Shanghai-based fabless chip design company that develops intelligent processors for GPU and DSA computation architectures, filed to go public in Hong Kong.  
Biren Technology was founded in 2019 by CEO &amp; Chairman Mr. Wen Zhang, who previously worked at AI software company SenseTime Group Inc.   
This is a red-hot upcoming IPO to watch, in my view. Moore Threads and MetaX Integrated Circuits have recently raised $1.1B and ~$600M in their public share offerings in Shanghai.


Biren Technology IPO: China’s “NVIDIA Moment” and The Rise of a Homegrown AI Chip Champion

China

Cambricon Technologies Corporation Limited develops and distributes software products. The Company produces terminal intelligent processors, cloud intelligent chips, accelerator cards, intelligent computing cluster systems, and other products. Cambricon Technologies also produces computer peripheral products.

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Cambricon Technologies Lt (688256 CH)

Biren Technology (6082 HK) IPO: What Valuations?

Biren's HK IPO is expected to be heavily oversubscribed, but its fair value is calculated to be HK$21.72. Anything above HK$23.75 is expensive...

Osbert Tang, CFA

Biren Technology IPO (6082.HK): Signals Investor Conviction With Higher Valuation Vs. Prior Funding

High growth GPU maker Biren Technology disclosed terms of its IPO in Hong Kong. The offering signals investor conviction with IPO valuation more...

Andrei Zakharov

Shanghai Biren Technology IPO - It's Not Cheap, but Neither Are Its Peers

Shanghai Biren Intelligent Technology, a GPGPU chips and computing solutions provider, aims to raise up to US$624m in its Hong Kong listing. In...

Sumeet Singh

Shanghai Biren Technology Pre-IPO - Growing Rapidly, Sometimes

Shanghai Biren Intelligent Technology, a GPGPU chips and computing solutions provider, aims to raise around US$600m in its Hong Kong listing.

Sumeet Singh

Biren Technology IPO: China’s “NVIDIA Moment” and The Rise of a Homegrown AI Chip Champion

Shanghai-based fabless chip design company Biren Technology plans to go public in Hong Kong in January, following blockbuster offerings by Moore...

Andrei Zakharov

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Biren Technology (6082 HK) IPO: What Valuations?

​Biren's HK IPO is expected to be heavily oversubscribed, but its fair value is calculated to be HK$21.72. Anything above HK$23.75 is expensive...

Osbert Tang, CFA

Biren Technology IPO (6082.HK): Signals Investor Conviction With Higher Valuation Vs. Prior Funding

​High growth GPU maker Biren Technology disclosed terms of its IPO in Hong Kong. The offering signals investor conviction with IPO valuation more...

Andrei Zakharov

Shanghai Biren Technology IPO - It's Not Cheap, but Neither Are Its Peers

Shanghai Biren Intelligent Technology, a GPGPU chips and computing solutions provider, aims to raise up to US$624m in its Hong Kong listing. In...

Sumeet Singh

Shanghai Biren Technology Pre-IPO - Growing Rapidly, Sometimes

Shanghai Biren Intelligent Technology, a GPGPU chips and computing solutions provider, aims to raise around US$600m in its Hong Kong listing.

Sumeet Singh

Biren Technology IPO: China’s “NVIDIA Moment” and The Rise of a Homegrown AI Chip Champion

​Shanghai-based fabless chip design company Biren Technology plans to go public in Hong Kong in January, following blockbuster offerings by Moore...

Andrei Zakharov

Biren's HK IPO is expected to be heavily oversubscribed, but its fair value is calculated to be HK$21.72. Anything above HK$23.75 is expensive...

High growth GPU maker Biren Technology disclosed terms of its IPO in Hong Kong. The offering signals investor conviction with IPO valuation more...

Shanghai-based fabless chip design company Biren Technology plans to go public in Hong Kong in January, following blockbuster offerings by Moore...