IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

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

<div><p><a href="https://www.smartkarma.com/entities/bairong" target="_blank" data-smartkarma-citation="entities:31486:1" rel="noopener">Bairong (1569395D CH)</a> is a leading independent AI-powered technology platform in China serving the financial services industry. Biarong will commence trading on Wednesday, 31 March. Bairong priced its IPO at HK$31.80 and <a href="https://inews.hket.com/article/2920642/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E7%99%BE%E8%9E%8D%E9%9B%B2%E5%89%B56608%E6%9A%97%E7%9B%A4%E6%BD%9B%E6%B0%B4%E3%80%80%E4%B8%80%E6%89%8B%E5%B8%B3%E9%9D%A2%E8%9D%951400%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">opened around -9% lower</a> at HK$29 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions and declining market sentiment on Chinese tech names. </p></div><div><p>In <a href="https://www.smartkarma.com/insights/bairong-ipo-initiation-creditworthy" target="_blank" data-smartkarma-citation="insights:49249" rel="noopener">Bairong IPO Initiation: Creditworthy</a>, we opined that the good 4Q20 revenue growth exit rate points to recovery. We noted that Bairong has the potential to combine solid growth with profitability and cash generation. We concluded that Bairong is worth a closer look. In <a href="https://www.smartkarma.com/insights/bairong-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:49418" rel="noopener">Bairong IPO: Valuation Insights</a>, we noted that the IPO price range is reasonable.</p></div><div><div><div class="content-highlight"><p>Updating for the final IPO net raise, our base-case DCF derived price target of HK$35.79 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. </p></div></div></div>

Bairong (1569395D CH) is a leading independent AI-powered technology platform in China serving the financial services industry. Biarong will commence trading on Wednesday, 31 March. Bairong priced its IPO at HK$31.80 and opened around -9% lower at HK$29 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions and declining market sentiment on Chinese tech names. In Bairong IPO Initiation: Creditworthy, we opined that the good 4Q20 revenue growth exit rate points to recovery. We noted that Bairong has the potential to combine solid growth with profitability and cash generation. We concluded that Bairong is worth a closer look. In Bairong IPO: Valuation Insights, we noted that the IPO price range is reasonable.Updating for the final IPO net raise, our base-case DCF derived price target of HK$35.79 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. 

OneConnect Financial Technology (OCFT US)

Bairong

Bairong IPO: Trading Debut