IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Ligent Technologies / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ligent-technologies-inc" target="_blank" data-smartkarma-citation="entities:45722:1" rel="noopener">Ligent Technologies (9856 HK)</a> is an optical communication and connectivity products provider. It is seeking to raise US$723 million at HK$32.96 per share.</li>
<li>I previously discussed the IPO in <strong><em><a href="https://www.smartkarma.com/insights/ligent-technologies-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:266547" rel="noopener">Ligent Technologies IPO: The Investment Case</a></em></strong>. </li>
<li>In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive.</li>
</ul>



Ligent Technologies (9856 HK) is an optical communication and connectivity products provider. It is seeking to raise US$723 million at HK$32.96 per share.
I previously discussed the IPO in Ligent Technologies IPO: The Investment Case. 
In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive.


Ligent Technologies (9856 HK) IPO: Valuation Insights

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ligent-technologies-inc" target="_blank" data-smartkarma-citation="entities:45722:1" rel="noopener">Ligent Technologies (9856 HK)</a>' IPO looks to raise HK$5.4bn at HK$32.96/share. This optical communication and connectivity product provider, however, does not stand out. </li>
<li>It will benefit from the current AI investment trend, driving a 3-year EPS CAGR of 59.7%. With Hisense Group being its controlling shareholder, it can leverage on this relationship.</li>
<li>Its 1H26 gross margin is low, hence difficult to justify a premium. Optimistically, it can trade on par with <a href="https://www.smartkarma.com/entities/cig-shanghai-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:46336:1" rel="noopener">CIG Shanghai (6166 HK)</a>'s 10.7x FY27 PER, equalling HK$36.06. </li>
</ul>



Ligent Technologies (9856 HK)' IPO looks to raise HK$5.4bn at HK$32.96/share. This optical communication and connectivity product provider, however, does not stand out. 
It will benefit from the current AI investment trend, driving a 3-year EPS CAGR of 59.7%. With Hisense Group being its controlling shareholder, it can leverage on this relationship.
Its 1H26 gross margin is low, hence difficult to justify a premium. Optimistically, it can trade on par with CIG Shanghai (6166 HK)'s 10.7x FY27 PER, equalling HK$36.06. 


Ligent Technologies (9856 HK) IPO: Low Expectations

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Ligent Technologies launched Hongkong IPO to raise HK$ 5.7B. They are global optical communication, connectivity product provider that develops, manufactures and sells optical transceivers, optical chips and optical network terminals.</li>
<li>Ligent Technologies intends to use the proceeds for research and development, expanding production capacity, business promotion, strategic investments and/or acquisition and for general corporate purpose.</li>
<li>Ligent’s operational capabilities, technological prowess, reasonably strong product portfolio and global market presence, coupled with a more stable demand outlook does make this issue fundamentally worth for investors.</li>
</ul>


Ligent Technologies launched Hongkong IPO to raise HK$ 5.7B. They are global optical communication, connectivity product provider that develops, manufactures and sells optical transceivers, optical chips and optical network terminals.
Ligent Technologies intends to use the proceeds for research and development, expanding production capacity, business promotion, strategic investments and/or acquisition and for general corporate purpose.
Ligent’s operational capabilities, technological prowess, reasonably strong product portfolio and global market presence, coupled with a more stable demand outlook does make this issue fundamentally worth for investors.


Ligent Technologies IPO: Growth Optics and Valuation Seems Just About Right

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

<ul>
<li>Ligent, a China-based maker of optical transceivers and optical network terminals, launched its Hong Kong IPO to raise USD 723m. Citi and CITIC are the joint sponsors.</li>
<li>In this note, we look at the deal terms and provide our thoughts on valuation for the company.</li>
<li>We analyze cornerstone and sponsor performance and assess the risk-reward of the deal.</li>
</ul>


Ligent, a China-based maker of optical transceivers and optical network terminals, launched its Hong Kong IPO to raise USD 723m. Citi and CITIC are the joint sponsors.
In this note, we look at the deal terms and provide our thoughts on valuation for the company.
We analyze cornerstone and sponsor performance and assess the risk-reward of the deal.


Ligent (纳真科技) IPO: Analysis of Deal Terms and Valuation

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>In 26H1, Ligent achieved impressive results, and there is a high certainty for the high growth of the entire 2026. However, upon closer analysis, three structural contradictions are particularly prominent. </li>
<li>We updated three-year forecast.Future revenue growth will further slow down, reflecting industry's transition from explosive phase to growth phase, but net profit margin is expected to rise to above 12%.</li>
<li>Since Ligent has obvious discount factors in terms of profitability, customer structure, and governance transparency, we think valuation would be lower than peers. A neutral scenario could be 15x P/E  </li>
</ul>


In 26H1, Ligent achieved impressive results, and there is a high certainty for the high growth of the entire 2026. However, upon closer analysis, three structural contradictions are particularly prominent. 
We updated three-year forecast.Future revenue growth will further slow down, reflecting industry's transition from explosive phase to growth phase, but net profit margin is expected to rise to above 12%.
Since Ligent has obvious discount factors in terms of profitability, customer structure, and governance transparency, we think valuation would be lower than peers. A neutral scenario could be 15x P/E  


Pre-IPO Ligent Technologies (PHIP Updates) - Some Points Worth the Attention

China

Eoptolink Technology Inc., Ltd.  designs and manufactures communication components.  The Company sells a variety of optical transceiver modules.  Eoptolink Technology sells products around the world.

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Eoptolink Technology (300502 CH)

Ligent Technologies (9856 HK) IPO: Valuation Insights

Ligent is an optical communication and connectivity products provider. It is seeking to raise US$723 million at HK$32.96 per share. In this note, I...

Arun George

Ligent Technologies (9856 HK) IPO: Low Expectations

Ligent's IPO is not particularly attractive, given its low margin against peers and mid-tier industry position. It is cheap though, and at par to...

Osbert Tang, CFA

Ligent Technologies IPO: Growth Optics and Valuation Seems Just About Right

Ligent launched HK IPO to raise HK$ 5.7B for R&D, capacity expansion etc. Ligent’s capabilities, strong product portfolio global presence, stable...

Tina Banerjee

Ligent (纳真科技) IPO: Analysis of Deal Terms and Valuation

We analyze Ligent's USD 723m Hong Kong IPO. We look at deal terms and track records of cornerstone investors and sponsors, as well as its...

Ke Yan, CFA, FRM

Pre-IPO Ligent Technologies (PHIP Updates) - Some Points Worth the Attention

Ligent’s IPO pricing is HK$32.96, with market value of HK$32.4bn (or RMB27.7bn). If based on 2026 forecast, P/E is 19x, higher than our optimistic...

Xinyao (Criss) Wang

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