Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Bottom-Up

<ul>
<li>65 Equity Partners, a Temasek-backed global investment firm with $3B+ in AUM, took a ~13% stake in Tuya for ~$100M.</li>
<li>Jerry Wang, Tuya’s CEO and Founder, assumed that Tuya would consider a potential secondary listing in Singapore to strengthen company’s presence in the global capital markets.</li>
<li>With $1B+ in cash, revenue growth re-acceleration, non-GAAP op margin break-even and turnaround plan, I have a positive view on the stock longer-term.</li>
</ul>


65 Equity Partners, a Temasek-backed global investment firm with $3B+ in AUM, took a ~13% stake in Tuya for ~$100M.
Jerry Wang, Tuya’s CEO and Founder, assumed that Tuya would consider a potential secondary listing in Singapore to strengthen company’s presence in the global capital markets.
With $1B+ in cash, revenue growth re-acceleration, non-GAAP op margin break-even and turnaround plan, I have a positive view on the stock longer-term.


TUYA (TUYA.US): Depressed Valuation, $1B+ In Cash, Is Turnaround Story Ahead?

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>On November 18th, 2024, Temasek-affiliated investment fund 65Equity bought 13% of TUYA, an IOT hardware company and planned to bring the company to list on the Singapore Stock Exchange;</li>
<li>TUYA is trading at US$901mn market cap, equivalent to 3.2x 12TTM sales. This isn't cheap. Xiaomi, a high flying stock, now trades at 2.0x 12TTM sales. TUYA is not profitable;</li>
<li>TUYA is a good and real company but in a bad business. Electronics inventory cycle and advanced stocking for Trump's Tariff Hike shall support earnings in the next few quarters.</li>
</ul>


On November 18th, 2024, Temasek-affiliated investment fund 65Equity bought 13% of TUYA, an IOT hardware company and planned to bring the company to list on the Singapore Stock Exchange;
TUYA is trading at US$901mn market cap, equivalent to 3.2x 12TTM sales. This isn't cheap. Xiaomi, a high flying stock, now trades at 2.0x 12TTM sales. TUYA is not profitable;
TUYA is a good and real company but in a bad business. Electronics inventory cycle and advanced stocking for Trump's Tariff Hike shall support earnings in the next few quarters.


TUYA: Is The King of White Label IOT Ready to Charter a Different Course?

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.

Equity Capital Markets

Full Truck Alliance   / Equity Capital Markets

<ul>
<li>Full Truck Alliance (FTA), China’s largest digital freight platform by gross transaction value, raised around US$2bn in its US listing in Jun 21. It is backed by Softbank and Sequoia.</li>
<li>We have looked at various aspects of the deal in our earlier IPO notes, links to which are included below.</li>
<li>In this note, we look at the updates since listing and the impact of the upcoming lock-up expiry.</li>
</ul>


Full Truck Alliance (FTA), China’s largest digital freight platform by gross transaction value, raised around US$2bn in its US listing in Jun 21. It is backed by Softbank and Sequoia.
We have looked at various aspects of the deal in our earlier IPO notes, links to which are included below.
In this note, we look at the updates since listing and the impact of the upcoming lock-up expiry.


Full Truck Alliance Lock-Up Expiry - In Similar Delisting Boat as Didi. 60% of Stock up for Lock-Up

SenseTime Group  / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/sensetime-group" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group (1475539D HK)</a> is looking to raise about US$2bn in its upcoming Hong Kong IPO. SenseTime Group (STG) is a leading AI software company. Its software is used by customers from a wide range of industries. STG was the largest AI software company in Asia in terms of 2020 revenue, as per Frost &amp; Sullivan (F&amp;S).In this note, we look at STG’s business model, financials, and share our initial thoughts on the IPO.

SenseTime Group (1475539D HK) is looking to raise about US$2bn in its upcoming Hong Kong IPO. SenseTime Group (STG) is a leading AI software company. Its software is used by customers from a wide range of industries. STG was the largest AI software company in Asia in terms of 2020 revenue, as per Frost &amp; Sullivan (F&amp;S).In this note, we look at STG’s business model, financials, and share our initial thoughts on the IPO.

SenseTime Group (商汤集团) Pre-IPO - Fast-Growing but Still Finding Its Footing

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<a href="https://www.smartkarma.com/entities/tdcx-inc" target="_blank" data-smartkarma-citation="entities:34187:1" rel="noopener">TDCX (TDCX US)</a> TDCX provides digital customer experience solutions for innovative technology and other blue-chip companies. The company’s solutions include omnichannel CX solutions, sales and digital marketing services, content monitoring and moderation services to a global client base that includes Facebook and Airbnb.The company has filed for an IPO to list its shares in the US and plans to raise proceeds of about US$400m. The company plans to use about US$180m of the net IPO proceeds for repaying its debt (obtained under the Credit Suisse Facility) while the remainder will be used for business expansion including into new markets.In this insight, we examine the company’s business model, segments, revenues, margins and the outlook on the company.

TDCX (TDCX US) TDCX provides digital customer experience solutions for innovative technology and other blue-chip companies. The company’s solutions include omnichannel CX solutions, sales and digital marketing services, content monitoring and moderation services to a global client base that includes Facebook and Airbnb.The company has filed for an IPO to list its shares in the US and plans to raise proceeds of about US$400m. The company plans to use about US$180m of the net IPO proceeds for repaying its debt (obtained under the Credit Suisse Facility) while the remainder will be used for business expansion including into new markets.In this insight, we examine the company’s business model, segments, revenues, margins and the outlook on the company.

TDCX IPO: Not a Typical Unprofitable Tech Services Company

United States

Tuya Inc., doing business as Tuya Smart, provides IoT cloud platform. The Company offers solutions which enables brands, retailers, OEMs, and manufacturers to develop, launch, manage, and monetize software-enabled devices and services. Tuya Smart serves customers worldwide.

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Tuya Inc (TUYA US)

TUYA (TUYA.US): Depressed Valuation, $1B+ In Cash, Is Turnaround Story Ahead?

A Temasek-backed 65 Equity Partners has acquired a ~13% stake in Tuya. In my insight, I discuss peer valuation, upside catalysts and fundamentals...

Andrei Zakharov

TUYA: Is The King of White Label IOT Ready to Charter a Different Course?

Temasek bought 13% of TUYA and planned to list on SGX. We believe TUYA's valuation is high and the company's business model, customer segment and...

Blue Lotus Research Institute

Full Truck Alliance Lock-Up Expiry - In Similar Delisting Boat as Didi. 60% of Stock up for Lock-Up

Full Truck Alliance (FTA), China’s largest digital freight platform by gross transaction value, raised around US$2bn in its US listing in Jun 21....

Sumeet Singh

SenseTime Group (商汤集团) Pre-IPO - Fast-Growing but Still Finding Its Footing

SenseTime Group (1475539D HK) is looking to raise about US$2bn in its upcoming Hong Kong IPO. SenseTime Group (STG) is a leading AI software company.

Sumeet Singh

TDCX IPO: Not a Typical Unprofitable Tech Services Company

Unlike a large number of tech and internet services companies that went for listing in the US and HK recently who had no clear path to profits,...

Shifara Samsudeen, FCMA, CGMA

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