Shangtang technology IPO landed, and the valuation is expected to exceed HK $130 billion. On December 7, 2021, AI Unicorn Shangtang technology with the highest valuation in the world opened a public offering on the Hong Kong stock exchange. It plans to issue 1.5 billion class B-Shares at a price of no more than HK $3.99 and plans to raise no more than US $767 million. The public offering in the Hong Kong market has been fully subscribed within half a day, The international placement part (accounting for 90% of the total issued quantity) has been oversubscribed. It is expected that the trading of class B-Shares will begin on December 17, code 0020. According to the global public offering document of Shangtang technology, the company has received a total of 9 cornerstone investors to subscribe for a total of US $450 million, and the cornerstone subscription proportion reaches 60%. Assuming that it is issued at HK $3.99/share and the over allotment right is exercised (225 million class B shares), then the total market value of the company will reach HK $133.7 billion after the issuance. With the IPO of Shangtang technology, we believe that the computer vision segment in the AI track is expected to accelerate into the recovery and maturity stage.
AI leaders face value revaluation and have a good margin of safety. Assuming that the final valuation price of Shangtang technology’s IPO is HK $130 billion, corresponding to about 110 billion yuan, considering that Shangtang technology still continues to suffer losses, the PS valuation is about 32 times in 2020 and about 30 times in 2021. With the logic of valuation improvement brought by the increase in the proportion of enterprise digitization and innovative business, we believe that Hangzhou Hikvision Digital Technology Co.Ltd(002415) and Zhejiang Dahua Technology Co.Ltd(002236) have good configuration and cost performance. We believe that there are value revaluation opportunities for AI leaders in other segments, such as Thunder Software Technology Co.Ltd(300496) , Iflytek Co.Ltd(002230) , Autel Intelligent Technology Corp.Ltd(688208) , Beijing Haitian Ruisheng Science Technology Ltd(688787) , and we suggest paying attention to the callback opportunities.
Risk warning: AI landing is not as expected; Increased trade friction; Financial expenditure is lower than expected; The economic downturn exceeded expectations.
