IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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

Shanghai Xizhi Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-xizhi-technology-lightelligence" target="_blank" data-smartkarma-citation="entities:48061:1" rel="noopener">Shanghai Xizhi Technology (Lightelligence) (LIG HK)</a> is a Chinese optical interconnect company. It has launched an HKEx IPO to raise US$319 million.</li>
<li>I previously discussed the IPO in <strong><em><a href="https://www.smartkarma.com/insights/xizhi-technology-lightelligence-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:231796" rel="noopener">Xizhi Technology (Lightelligence) IPO: The Investment Case</a>. </em></strong>
</li>
<li>Despite my cautious view of the fundamentals, my DCF sensitivity analysis suggests the IPO price range is reasonable. The presence of blue-chip cornerstones will help sentiment.</li>
</ul>



Shanghai Xizhi Technology (Lightelligence) (LIG HK) is a Chinese optical interconnect company. It has launched an HKEx IPO to raise US$319 million.
I previously discussed the IPO in Xizhi Technology (Lightelligence) IPO: The Investment Case. 

Despite my cautious view of the fundamentals, my DCF sensitivity analysis suggests the IPO price range is reasonable. The presence of blue-chip cornerstones will help sentiment.


Xizhi Technology (Lightelligence) (1879 HK) IPO: Valuation Insights

APAC IPOs & Placements, Aequitas Research

Hong Jie Seow

APAC 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-xizhi-technology-lightelligence" target="_blank" data-smartkarma-citation="entities:48061:1" rel="noopener">Shanghai Xizhi Technology (Lightelligence) (LIG HK)</a> is looking to raise around US$330m in its upcoming Hong Kong IPO.</li>
<li>Lightelligence, otherwise known as Shanghai Xizhi Technology, is a specialist technology company dedicated to the pioneering field of optoelectronic computing, an innovative paradigm that combines photonics (light) and electronics.</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 Xizhi Technology (Lightelligence) (LIG HK) is looking to raise around US$330m in its upcoming Hong Kong IPO.
Lightelligence, otherwise known as Shanghai Xizhi Technology, is a specialist technology company dedicated to the pioneering field of optoelectronic computing, an innovative paradigm that combines photonics (light) and electronics.
We have looked at the company's past performance in our previous note. In this note, we talk about valuations.


Aequitas: Lightelligence IPO - Betting On The Next AI Bottleneck

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-xizhi-technology-lightelligence" target="_blank" data-smartkarma-citation="entities:48061:1" rel="noopener">Shanghai Xizhi Technology (Lightelligence) (LIG HK)</a>, a Chinese optical interconnect company, is pre-marketing an HKEx IPO to raise US$300-400 million.   </li>
<li>Its main product is a scale-up optical interconnect that creates tightly interconnected GPU clusters that can operate as a single unit for LLM (large language model) training and inference.</li>
<li>The investment case is bearish due to the tiny market share, nascent monetisation ill-suited for public markets, an uncertain path to profitability, cash burn, and an elongated cash conversion cycle. </li>
</ul>



Shanghai Xizhi Technology (Lightelligence) (LIG HK), a Chinese optical interconnect company, is pre-marketing an HKEx IPO to raise US$300-400 million.   
Its main product is a scale-up optical interconnect that creates tightly interconnected GPU clusters that can operate as a single unit for LLM (large language model) training and inference.
The investment case is bearish due to the tiny market share, nascent monetisation ill-suited for public markets, an uncertain path to profitability, cash burn, and an elongated cash conversion cycle. 


Xizhi Technology (Lightelligence) IPO: The Investment Case

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-xizhi-technology-lightelligence" target="_blank" data-smartkarma-citation="entities:48061:1" rel="noopener">Shanghai Xizhi Technology (Lightelligence) (LIG HK)</a> is looking to raise around US$400m in its upcoming Hong Kong IPO. </li>
<li>Lightelligence, otherwise known as Shanghai Xizhi Technology, is a specialist technology company dedicated to the pioneering field of optoelectronic computing, an innovative paradigm that combines photonics (light) and electronics. </li>
<li>In this note, we look at the company’s past performance.</li>
</ul>



Shanghai Xizhi Technology (Lightelligence) (LIG HK) is looking to raise around US$400m in its upcoming Hong Kong IPO. 
Lightelligence, otherwise known as Shanghai Xizhi Technology, is a specialist technology company dedicated to the pioneering field of optoelectronic computing, an innovative paradigm that combines photonics (light) and electronics. 
In this note, we look at the company’s past performance.


Aequitas: Lightelligence (Shanghai Xizhi Technology) PreIPO - Solution To The Networking Bottleneck?

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Xizhi's core competitiveness lies in scale up segmentation scenarios. Compared with peers, Xizhi's products have achieved large-scale deployment and its technology landing capabilities are ahead of most start-up companies.</li>
<li>Xizhi may find it difficult to replicate MiniMax's "fast commercialization" speed. In the next 2-3 years, it will still need to focus on optical interconnect and gradually promote optical computing.</li>
<li>Here are our speculations on valuation: In conservative scenario, valuation could be RMB8-12 billion. In neutral scenario, valuation could be RMB12-18 billion. In optimistic scenario, valuation could be RMB18-25 billion.</li>
</ul>


Xizhi's core competitiveness lies in scale up segmentation scenarios. Compared with peers, Xizhi's products have achieved large-scale deployment and its technology landing capabilities are ahead of most start-up companies.
Xizhi may find it difficult to replicate MiniMax's "fast commercialization" speed. In the next 2-3 years, it will still need to focus on optical interconnect and gradually promote optical computing.
Here are our speculations on valuation: In conservative scenario, valuation could be RMB8-12 billion. In neutral scenario, valuation could be RMB12-18 billion. In optimistic scenario, valuation could be RMB18-25 billion.


Pre-IPO Shanghai Xizhi Technology (PHIP Update)-The Business, Peer Comparison, Thoughts on Valuation

China

Shanghai Xizhi Technology designs, develops, and manufactures optoelectronic hybrid computing power solutions, including photonic computing evaluation boards, optoelectronic hybrid computing accelerator cards, and optical interconnect hardware products. The company focuses on optical interconnect and optical computing to deliver scalable and cost-effective solutions. It was founded in 2017 and is headquartered in Shanghai, China.

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Shanghai Xizhi Technology (1879 HK)

Xizhi Technology (Lightelligence) (1879 HK) IPO: Valuation Insights

Despite my cautious view of the fundamentals, my DCF sensitivity analysis suggests the IPO price range is reasonable. The presence of blue-chip...

Arun George

Aequitas: Lightelligence IPO - Betting On The Next AI Bottleneck

Shanghai Xizhi Technology (Lightelligence) is set to raise $330m in Hong Kong IPO, specializing in optoelectronic computing combining photonics...

Hong Jie Seow

Xizhi Technology (Lightelligence) IPO: The Investment Case

Xizhi Technology (Lightelligence), a Chinese optical interconnect company, is pre-marketing an HKEx IPO to raise US$300-400 million. In this note,...

Arun George

Aequitas: Lightelligence (Shanghai Xizhi Technology) PreIPO - Solution To The Networking Bottleneck?

Shanghai Xizhi Technology (Lightelligence) plans to raise $400m in Hong Kong IPO, specializing in optoelectronic computing.

Hong Jie Seow

Pre-IPO Shanghai Xizhi Technology (PHIP Update)-The Business, Peer Comparison, Thoughts on Valuation

Xizhi's core strengths lie in scale up segmentation scenarios, but Xizhi will find it difficult to replicate MiniMax's "fast commercialization"...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Xizhi Technology (Lightelligence) (1879 HK) IPO: Valuation Insights

Despite my cautious view of the fundamentals, my DCF sensitivity analysis suggests the IPO price range is reasonable. The presence of blue-chip...

Arun George

Aequitas: Lightelligence IPO - Betting On The Next AI Bottleneck

​Shanghai Xizhi Technology (Lightelligence) is set to raise $330m in Hong Kong IPO, specializing in optoelectronic computing combining photonics...

Hong Jie Seow

Xizhi Technology (Lightelligence) IPO: The Investment Case

Xizhi Technology (Lightelligence), a Chinese optical interconnect company, is pre-marketing an HKEx IPO to raise US$300-400 million. In this note,...

Arun George

Aequitas: Lightelligence (Shanghai Xizhi Technology) PreIPO - Solution To The Networking Bottleneck?

​Shanghai Xizhi Technology (Lightelligence) plans to raise $400m in Hong Kong IPO, specializing in optoelectronic computing.

Hong Jie Seow

Pre-IPO Shanghai Xizhi Technology (PHIP Update)-The Business, Peer Comparison, Thoughts on Valuation

​Xizhi's core strengths lie in scale up segmentation scenarios, but Xizhi will find it difficult to replicate MiniMax's "fast commercialization"...

Xinyao (Criss) Wang

Shanghai Xizhi Technology (Lightelligence) is set to raise $330m in Hong Kong IPO, specializing in optoelectronic computing combining photonics...

Shanghai Xizhi Technology (Lightelligence) plans to raise $400m in Hong Kong IPO, specializing in optoelectronic computing.

Xizhi's core strengths lie in scale up segmentation scenarios, but Xizhi will find it difficult to replicate MiniMax's "fast commercialization"...