Daily BriefsECM

Daily Brief ECM: CALB IPO: Valuation Insights and more

In today’s briefing:

  • CALB IPO: Valuation Insights
  • Porsche IPO Valuation Analysis
  • Socionext Pre-IPO Valuation – Thoughts on Valuation
  • Leapmotor IPO: Forecasts and Valuation
  • Growatt Technology IPO: The Bull Case
  • Edianyun Pre-IPO Tearsheet
  • Pre-IPO Laekna – Low Cost Performance of License-In Mode Leads to A “Rethink” Of Investment Value

CALB IPO: Valuation Insights

By Arun George

Porsche IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Porsche is EV of 83.6 billion EUR, implied market cap of 88.9 billion EUR, and target base case price target of 98 EUR per share. 
  • This represents 23% higher than the mid-point of the IPO price range. Given the relative solid upside, we have a Positive View of the Porsche IPO. 
  • The market related risk is clearly the biggest risk for the Porsche IPO right now in our view. 

Socionext Pre-IPO Valuation – Thoughts on Valuation

By Clarence Chu

  • Socionext (6526 JP) is looking to raise up to US$285m in its Japan IPO.  
  • As stated in our earlier notes, Socionext has been growing its number of design wins per year historically, which should aid to its near/medium term sales and profitability.
  • In our previous note, we undertook a peer comparison. In this note, we will talk about valuations.

Leapmotor IPO: Forecasts and Valuation

By Shifara Samsudeen, ACMA, CGMA

  • Leapmotor (2007699D HK)  is a leading smart EV company in China. The company plans to raise net proceeds of US$904m through its HKEx IPO.
  • In our previous insight Leapmotor IPO: Stuck in the Middle , we concluded that the company will have to compromise on margins to grow its top line.
  • Our valuation analysis suggests that Leapmotor’s shares are not even attractive at the lower-end of the IPO price range and the premium vs local peers is hard to justify.

Growatt Technology IPO: The Bull Case

By Arun George

  • Growatt Technology (1833969D CH), a leading PV inverters manufacturer, will seek a listing hearing for a US$1 billion HKEx IPO in October, according to press reports.
  • According to Frost & Sullivan, in 2021, Growatt was the third-largest player in the global PV inverter market with a 6.8% market share in shipments. 
  • The key elements of the bull case rest on a large market, improving sector market sentiment, and sector-leading revenue growth and profitability.

Edianyun Pre-IPO Tearsheet

By Ethan Aw

  • Edianyun (1480259D CH) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC. 
  • Edianyun is an office IT integrated solution provider in China, providing one-stop office IT services on a subscription basis to enterprise customers consisting mainly of SMEs. 
  • As of 30th Jun 2022 (6M22), it had approximately 39,525 subscribing customers and 1.1m devices under subscription.

Pre-IPO Laekna – Low Cost Performance of License-In Mode Leads to A “Rethink” Of Investment Value

By Xinyao (Criss) Wang

  • Laekna’s development mode is mainly based on license-in. However, the increasingly low cost performance of in-licensed products and potential legal risks have made the capital “reconsider”. 
  • Both two core products LAE002 and LAE001 have to face the challenge of market acceptance and potential R&D failure risks. China’s NRDL negotiation further casts doubts on their commercialization prospects.
  • So, the investment in Laekna may not generate expected return. Together with the unfriendly external environment, we are conservative about Laekna (LAEKNA HK)’s outlook at the current stage.

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