In today’s briefing:
- Lens Technology A/H Listing – Pricing Looks Decent
- Lens Technology H Share Listing (6613 HK): The Investment Case
- Beijing Geekplus Pre-IPO: Expensive Valuation and Mark up from Previous Round
- Wuhan Dazhong Dental Medical IPO: Shine Revival Will Take a Few Sessions
- Pre-IPO Genuine Biotech – The Current Pipeline Hardly Supports High Valuation
Lens Technology A/H Listing – Pricing Looks Decent
- Lens Technology (300433 CH), a precision manufacturing solution provider, aims to raise around US$600m in its H-share listing.
- Lens Technology (LT) is one of the leading players in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicles interaction systems.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
Lens Technology H Share Listing (6613 HK): The Investment Case
- Lens Technology (6613 HK), an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.
- In terms of revenue in 2024, Lens is a global leader in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicle interaction systems.
- The investment case is based on a well-performing core business, limited tariff impact, reduced reliance on Apple, strong margins, and robust cash generation.
Beijing Geekplus Pre-IPO: Expensive Valuation and Mark up from Previous Round
- Geek+ (1678559D CH) is looking to raise up to $300m in its upcoming Hong Kong IPO.
- It is a leader in the global autonomous mobile robots (AMR) market.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
Wuhan Dazhong Dental Medical IPO: Shine Revival Will Take a Few Sessions
- Wuhan Dazhong Dental Medical launched IPO aiming to raise up to HK$232 million (US$30 million). The company plans to sell 10.8 million shares at HK$20–HK$21.4 per share.
- Wuhan Dazhong Dental Medical is a private dental services provider in Central China providing dental services under the direct chain model.
- The IPO price is set at a premium (23%) to the price realized during Series B funding. Valuation looks attractive. But there are a few concerns to take into account.
Pre-IPO Genuine Biotech – The Current Pipeline Hardly Supports High Valuation
- Essentially, Genuine‘s pipeline and commercialization strategy are centered around azvudine. However, the commercialization would still rely on the indications of HIV infection and COVID-19 in the short term.
- The COVID-19 has passed, so future revenue contribution of this indication will gradually shrink. Considering the unsustainability of its future performance, we suggest excluding COVID-19 projects when considering long-term valuation.
- The post-investment valuation after Series B financing was RMB3.56 billion. However, we are conservative about Genuine’s outlook, and we think reasonable valuation could be below RMB2 billion.
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