Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Capital Markets

Lalatech Holdings Co Ltd / Equity Capital Markets

<ul>
<li>Based on returns and margins, US-listed Full Truck Alliance is best comp</li>
<li>Lalatech probably deserves premium valuation multiples vs Full Truck Alliance </li>
<li>An equity valuation of US$11bn+ justifiable; will investors look at recent flops?</li>
</ul>


Based on returns and margins, US-listed Full Truck Alliance is best comp
Lalatech probably deserves premium valuation multiples vs Full Truck Alliance 
An equity valuation of US$11bn+ justifiable; will investors look at recent flops?


Lalatech IPO: Using YMM:US as Main Comp, Equity Valuation of US$11-12 Bn (Or More) Justifiable

<ul>
<li>We compare Lalatech's scale, P&amp;L, Balance Sheet, and Cash Flow to peers</li>
<li>On several measures, Lalatech is comparable to Full Truck Alliance, SF-Intra</li>
<li>Small, unprofitable GOGOX <em>not</em> an appropriate comp for Lalatech, in our view</li>
</ul>


We compare Lalatech's scale, P&amp;L, Balance Sheet, and Cash Flow to peers
On several measures, Lalatech is comparable to Full Truck Alliance, SF-Intra
Small, unprofitable GOGOX not an appropriate comp for Lalatech, in our view


Lalatech Compared to Full Truck Alliance, SF Intra-City, and GOGOX in Eleven Easy Charts

Equity Bottom-Up

<ul>
<li>FTA's revenue growth accelerated in Q124 and exceeded management guidance</li>
<li>Gross and OpInc margins (cash basis) both improved sharply in Q124</li>
<li>Growth, profitability, mix improved, but FTA no longer so cheap; HOLD</li>
</ul>


FTA's revenue growth accelerated in Q124 and exceeded management guidance
Gross and OpInc margins (cash basis) both improved sharply in Q124
Growth, profitability, mix improved, but FTA no longer so cheap; HOLD


Full Truck Alliance Q124 Results: Strong Financials Match Recent Strong Share Performance - HOLD

<ul>
<li>Didi's core China mobility (ride-hailing) segment continued to perform well in Q126</li>
<li>But International segment losses continued to pile up -- and not only from food delivery</li>
<li>We still have not seen clear plans for turning around operations <em>outside</em> of China</li>
</ul>


Didi's core China mobility (ride-hailing) segment continued to perform well in Q126
But International segment losses continued to pile up -- and not only from food delivery
We still have not seen clear plans for turning around operations outside of China


Didi Q126 Results: International Segment Still a Headache, Especially Food Delivery

<ul>
<li>Shocking performance from International segment caused large Adj EBITA loss in Q425</li>
<li>The core Chinese ridehailing business continues to grow and generate improving margins</li>
<li>Ahead of a potential HK IPO, Didi must offer a pathway towards International recovery </li>
</ul>


Shocking performance from International segment caused large Adj EBITA loss in Q425
The core Chinese ridehailing business continues to grow and generate improving margins
Ahead of a potential HK IPO, Didi must offer a pathway towards International recovery 


Didi Q425 Results | China Biz Hums, International Losses Explode | Before an IPO, Didi Needs a Plan

China

DiDi Chuxing Inc operates passenger transportation platforms. The Company provides mobility solutions, cloud computing, and other application based services. DiDi Chuxing serves customers worldwide.

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DiDi Global (DIDIY US)

Lalatech IPO: Using YMM:US as Main Comp, Equity Valuation of US$11-12 Bn (Or More) Justifiable

What are the best comps for Lalatech, which valuation multiples should we focus on, and does the company deserve a premium valuation relative to...

Tracking Traffic

Lalatech Compared to Full Truck Alliance, SF Intra-City, and GOGOX in Eleven Easy Charts

In this insight we compare Lalatech to listed peers Full Truck Alliance, SF Intra-city, and GOGOX on a range of factors, including scale, growth,...

Tracking Traffic

Didi Q126 Results: International Segment Still a Headache, Especially Food Delivery

A new year for Didi, but last year's main trends remain intact: improved performance in the core China segment, and worsening losses outside of its...

Tracking Traffic

Didi Q425 Results | China Biz Hums, International Losses Explode | Before an IPO, Didi Needs a Plan

Didi Q425 results showed a solid performance in China ridehailing and a shocking loss in the International segment. Management needs to formulate a...

Tracking Traffic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Lalatech IPO: Using YMM:US as Main Comp, Equity Valuation of US$11-12 Bn (Or More) Justifiable

What are the best comps for Lalatech, which valuation multiples should we focus on, and does the company deserve a premium valuation relative to...

Tracking Traffic

Lalatech Compared to Full Truck Alliance, SF Intra-City, and GOGOX in Eleven Easy Charts

In this insight we compare Lalatech to listed peers Full Truck Alliance, SF Intra-city, and GOGOX on a range of factors, including scale, growth,...

Tracking Traffic

Full Truck Alliance Q124 Results: Strong Financials Match Recent Strong Share Performance - HOLD

Full Truck Alliance posted great Q1 numbers: revenue growth accelerated, margins expanded, and mix improved. But its shares have rallied and the...

Tracking Traffic

Didi Q126 Results: International Segment Still a Headache, Especially Food Delivery

A new year for Didi, but last year's main trends remain intact: improved performance in the core China segment, and worsening losses outside of its...

Tracking Traffic

Didi Q425 Results | China Biz Hums, International Losses Explode | Before an IPO, Didi Needs a Plan

Didi Q425 results showed a solid performance in China ridehailing and a shocking loss in the International segment. Management needs to formulate a...

Tracking Traffic