top of page

CUIRS Equity Research Reports

CUIRS's Insights From Global Equity Team and China Equity Team

23-24 Term 1

Global Equity Team
[Equity Research] - Hermès International

January 24th, 2024

  • Stock: Hermès International

  • Ticker: EPA: RMS

  • Target Price: € 2255

  • Closing Price (At Publication): € 1809.4

  • Up/Downside: 24.6%

  • Industry:  luxury

  • Team: Reyna Kao, Andy Chan, Richard Lo, Charlie Lin, Yin Feng 

​​

Hermès International is the top player brand in the luxury class, with a diverse product portfolio of 19 product categories. Hermès employs a focused and high-end business model, prioritizing premium price points and capitalizing on its most profitable product category. This approach warrants a brand premium that allows the brand to achieve the highest margins among its industry peers. 

​

Amid a highly uncertain economic condition and a slowdown in the global economy, the leading player in the personal luxury industry, Hermès International is expected to maintain its top-tier position and benefit from the growth momentum and strengthening profitability. We initiated a “Over-weight Rating” of Hermès International at

€ 2255 Target Price Per Share with a potential +24.6% upside, reflecting the leading position of Hermès International in personal luxury industry. 

​

​

Global Equity Team
[Equity Research] - Kweichow Moutai

January 16th, 2024

  • Stock: Kweichow Moutan

  • Ticker: SHA: 600519

  • Target Price: ¥ 2195

  • Closing Price (At Publication): ¥ 1639.43

  • Up/Downside: 33.9%

  • Industry: Baijiu 

  • Team: Reyna Kao, Elaine Shi, Raco Lau, Audrey Wang, Trista Jiang, Joyce Jin

​​

Kweichow Moutai Co., Ltd is a leading supplier of Chinese liquor. It provides the production and sales of Moutai and Moutai series liquors. Kweichow Moutai has not only maintained its position as China’s leading Baijiu producer over time but has also emerged as a symbol of luxury and cultural heritage. The company is expected to consistently
demonstrate robust financial performance, leveraging traditional fermentation techniques and a commitment to innovation.

​

Chinese Baijiu Industry shows a premiumization trend and enters the consolidation stage. As a leading player in the sector, Kweichow Moutai is expected to maintain its position and benefit from the growth momentum and strengthening profitability. We initiated a “Over-weight Rating” of Kweichow Moutai at ¥ 2195 Target Price Per Share with a potential 33.9% upside, reflecting the dominating position in Chinese baijiu industry and Kweichow Moutai’s solid fundamentals.

​

​

Global Equity Team
[Equity Research] - ASML Holding

January 10th, 2024

  • Stock: ASML Holding

  • Ticker: AMS: ASML

  • Target Price: € 768.9

  • Closing Price (At Publication): € 654.8

  • Up/Downside: 17.4%

  • Industry: Semiconductor

  • Team: Sky Wang, Eileen Wang, Simone Liu, Khoi Lam, Anna Nguyen

​​

ASML is a leading global supplier of lithography, a multinational company headquartered in Veldhoven, the Netherlands, with global offices and principal operations. ASML focuses on production of high end lithography and provides holistic lithography product and service portfolio including lithography, metrology and inspection and installed base management. The main product is lithography of EUV and DUV. The company is the only one that is capable of mass-producing EUV lithography. 

​

Semiconductor has enjoyed a rapidly growing significance in the fourth Industrial Revolution and ASML plays as a global leading advanced PLM manufacturer, generating organic profit from the growing demand in advanced processes and ASML’s own fusion in supply chain. We initiated a “Over-weight Rating” of ASML Holding at € 768.9 Target Price Per Share with a potential 19.4% upside

​

​

​

22-23 Term 2

Global Equity Team
[Equity Research] - NVIDIA Corporation

June 5th, 2023

  • Stock: NVIDIA Corporation 

  • Ticker: NVDA NA

  • Target Price: $487.5

  • Closing Price (At Publication): $393.3

  • Up/Downside: 23.8%

  • Industry: Semiconductor

  • Team: Elaine Shi

​​

Founded in 1993, Nvidia Corporation is a software and fabless company which designs graphics processing units (GPUs), application programming interface (APIs) for data science and high-performance computing as well as system on a chip units (SoCs) for the mobile computing and automotive market. Nvidia is a dominant supplier of artificial intelligence hardware and software. Its professional line of GPUs are used in workstations for applications in such fields as architecture, engineering and construction, media and entertainment, automotive, scientific research, and manufacturing design.

 

With faster-than-expected wave from Generative AI boosting NVIDIA’s data center segment revenue, where there have been US$Tn of installed global data center infrastructure that will transit from general-purpose to accelerated computing as companies race to apply generative AI into products with mission-critical capabilities, we initiated a “Buy Rating” of NVIDIA Corporation at €‎487.5 Target Price Per Share with a potential 23.8% upside. 

​

​

Global Market Team
[Industry Research] - Global 5G Chipset Industry Outlook

February 10th, 2023

The 5G chipset market worldwide has seen rapid growth due to rising demand for high-speed data access. Among these, smartphone OEMs and telecom players will be the main adopters of 5G chipsets. To understand the prospect of this industry, the report also details the recent technological breakthrough and the company’s competitive landscape. It is crucial to examine the interaction between companies and external factors, thus transforming the market.


Overview of this report:
(1) Industry preface
(2) Company review
(3) Demand analysis
(4) Supply analysis
(5) Catalyst
(6) Risk
(7) Key summary

​

Global Market Team:

  • Kelvin Tong

  • Lily Yuen

​

​

Global Market Team
[Industry Research] - APAC Smart Retail Industry Outlook

February  10th, 2023

​The smart retail market has grown rapidly amid the sudden emergence of COVID-19, which prompted retailers flocked to seek alternatives to the conventional mode of doing business. To date, accelerating global demand for digitalization is expected to favour further market magnification in the future, especially for the APAC regions. Nonetheless, the industry’s developments are bound to be further shaped by government actions, COVID-19 recovery progress, and international cooperation in the future.

Overview of this report:
(1) Industry Introduction
(2) Top-Down Analysis
(3) Highlights of Market Players
(4) Macro Analysis (Demand- and Supply-Side Factors)
(5) Catalysts
(6) Risks
(7) Conclusion

​

Global Market Team:

  • Kelvin Tong

  • Charmy Pak

22-23 Term 1

Global Equity Team
[Equity Research] - StarPower Semiconductor

December 16th, 2022

  • Stock: StarPower Semiconductor

  • Ticker: 603290.SH

  • Target Price: ¥437

  • Closing Price (At Publication): ¥331

  • Up/Downside: 32%

  • Exchange: Shanghai Stock Exchange

  • Industry: New Energy Vehicles Industry

  • Team:  Joshua Gao, Kelvin Chan, Newton Deng, Rebecca Ren, Yolanda Qian (CET)

​​

Founded in 2005, StarPower Semiconductor focuses on design, development, and production of power semiconductor chips and IGBT modules. IGBTs are called the "CPU" of the power electronics industry and are widely used in the fields of motor energy saving, rail transportation, household appliances, automotive electronics, new energy vehicles, etc. StarPower is the leading company in this category in mainland China with its technologically advanced 1200V IGBT modules and other voltage IGBT modules products. According to data from the IHSMarkit 2018 report, StarPower ranked 10th in the global market share ranking of IGBT module suppliers in 2017 and 1st among Chinese companies.

Although the overall performance of the A-share semiconductor sector has declined compared to its highs, we believe StarPower remains to be a good investment target in the medium to long term. Its product performance in photovoltaics and new energy is steady and progressive, and it is also accelerating the layout of new products including SiC. As the leader in IGBT power semiconductors in China, StarPower has developed strong technical advantages and supply chain relationships. It is expected to benefit from the current wave of domestic chip substitution.

We initiated a “Buy Rating” of StarPower Semiconductor at CNY 437.0 Target Price Per Share with a potential 32.18% upside, reflecting the strong growth potential for semiconductors in China.

​

Global Equity Team
[Equity Research] - ASM International

November 28th, 2022

  • Stock: ASM International

  • Ticker: ASM NA

  • Target Price: €‎305.10

  • Closing Price (At Publication): €‎254.20

  • Up/Downside: 20%

  • Exchange: AMS

  • Industry: Atomic Layer Deposition ("ALD")

  • Team:  Reyna Kao, Jacky Leung, Sunny Wu, Cheryl Chau, Sunny Wong, Angus Cheung (GETR)

​​

Founded in 1964, ASM International is a Dutch headquartered semiconductor devices manufacturer of deposition and epitaxy equipment. It designs, manufactures, and sells wafer processing equipment and service to semiconductor manufacturers for front-end wafer processing in their semiconductor fabrication plants. The company's major products are Atomic Layer Deposition ("ALD"), Chemical Vapor Deposition (CVD), and epitaxy tools.

Despite the current semiconductor industry downturn cycle, we see the long-term prospect of ASM International as the technology transition in the wafer manufacturing process is expected to ramp up ALD tools and epitaxy demand. We project the top-line growth of the ALD market and assume that ASM International would be a long-term winner in an industry with high technological barriers. 

We initiated a “Buy Rating” of ASM International at €‎305.1 Target Price Per Share with a potential 20% upside, reflecting the positive stories of the new technology trend.

​

​

21-22 Term 2

Global Equity Team
[Equity Research] - Andes Tech

March 31st, 2022

  • Stock: Andes Technology

  • Ticker: 6533 TT

  • Target Price: NT$ 570

  • Closing Price (At Publication): NT$ 405

  • Up/Downside: +41%

  • Exchange: TWSE

  • Industry: Semiconductor IP

  • Team: Arthur Tzeng, Eason Chou (GETA)

​

Andes Tech 晶心科技 (6533 TT, listed in TWSE) is an embedded microprocessor IP provider for high performance and lower power 32/64-bit processors with the SoC platform, it is also a founding premier member of the RISC-V international association. We witness a strong demand growth in Risc-V open-source ISA chips triggered by unstable geopolitical environment and global localization trends in coming years, with key fundamentals of emerging technology applications in AIoT, 5G, Wifi, Data Centre, AR/DR, and other high computing areas that haven't been dominated by existing ISA players. Please download the research or assess to the "publication" section to know more about CUIRS's insights.

Global Equity Team
[Equity Research] - VeriSilicon

April 4th, 2022

  • Stock: VeriSilicon

  • Ticker: 688521 SH

  • Target Price: RMB$ 92.4

  • Closing Price (At Publication): RMB$ 48.6

  • Up/Downside: +90%

  • Exchange: SHEX

  • Industry: Semiconductor IP / IC Design Service

  • Team: Arthur Tzeng, Olivia Fu (GETA)

​

VeriSilicon 芯原微電子 (688521 SH, listed in SHEX STAR) is a provider of custom IC services and semiconductor IP licensing services based on its own semiconductor IP. According to IPnest data (ranked by IP business revenue), VeriSilicon was the Top 1 semiconductor IP authorized service provider in mainland China and the 7 th in the world in 2020. Under VeriSilicon’s unique Silicon Plattform as a Service (SiPaaS) business model, through the technology platform based on the company’s independent semiconductor IP, VeriSilicon can build semiconductor products from definition phase to test package in a relatively short time. From its leading China market dominance with its existing broad IP portfolio (GPU, NPU, VPU, DSP, ISP) under China IC Design Market’s strong growth (yoy 27% to ~2,810 IC Design players in 21A), we possess a high conviction toward its future growth and transition from pure IP/IC Design Service player to China Chiplet top 1 player, with potential 90% upside potential from its latest closing price of 48.6 RMB Per Share. Please download the research sample below. If you would like to receive the full version of this report, please comment below on our LinkedIn post. You could refer to our first initiation (6533 TT) to see the sample of our full-version research.

China Equity Team
[Equity Research] - Yunnan Energy
[股票研究] - 恩捷股份

二零二二年 四月七日
April 7th, 2022

  • 公司: 恩捷股份

  • 代號: 002812 SZ

  • 目標價 (每股): 人民幣302元

  • 收盤價(2022/4/7): 人民幣216元

  • 潛在報酬率: +39.81%

  • 交易所: 深交所

  • 產業: 锂电隔膜和BOPP膜 / 印刷

  • CUIRS分析師:  占忆晨 Lily Zhan, 谢安然 Judy Xie (中國股票組, China Equity Team)

​

恩捷股份 (002812 SZ, 深交所) 主要生产膜类产品（锂电隔膜和BOPP膜）、包装和印刷产品（烟标和 无菌包装）、纸制品包装（特种纸、全息防伪电化铝和转移膜）。自2018年收购上海恩捷股份后，公司正式进军湿法隔膜行业，当前已成为动力和消费电池全球最大的隔膜供应商。此外，此細分行業竞争格局集中，龙头盈利能力强，2020 年恩捷股份市占率占比高达 45%，显著高于其他材料，从盈利能力的角度来看，恩捷股份销售毛利率远超其他环节龙头。隨著行业需求扩张、新能车趋势加速，我們認為恩捷股份龙头地位稳固，並將持續拓寬產品性能及發揮規模效應，考虑到公司在隔膜行业的突出优势与行业的利好格局，CUIRS预测，隔膜产品将拉动公司收益，在 22E-25E 带来营业收入 38% CAGR的增长。並利用遠期可比估值法給予恩捷股份2025年市盈率20倍，目標估值每股302元人民幣，並根據2022年4月7日收盤價得出潛在報酬率83.28%。若對此篇研報有興趣，請點擊下方下載完整版本。

Global Macro Team
[Industry Research] - Global EV Outlook, Momentum or Bottlenecks?

April 10th, 2022

The global electric vehicle (EV) market has been growing in 2022 amid the increasing roll-out of policies designed to cut emissions. With attention to meeting the global net-zero emission target, developing and developed countries are raising their investment in electrification programs and related charging infrastructure. How the transition to EVs plays out over the coming decades is being largely affected by the actions by the governments and industry shortly. Please download the research to know more about CUIRS's insights.


Overview of this report:

(1) Highlight of companies

(2) Macro Analysis (Demand-Side)

(3) Macro Analysis (Supply-Side)

(4) Catalyst

(5) Risk

(6) Summary

​

GMT Research Team:

Leaders:

  • Tommy Lau (Head)

  • Kelvin Tong (Vice Head)

  • Benny Ye (Vice Head)

Analysts:

  • Samsoan Lam

  • Woody Leong

  • Lily Yuen

  • Charmy Pak

  • Christine Fung

  • Eugene Chen

Global Equity Team
[Equity Research] - Global Semiconductor Foundry Coverage

April 11th, 2022

A semiconductor is the backbone of modern technology, providing core materials for quantum computing, autonomous vehicles, and many other emerging technologies. Structural growth in cloud, big data, AI, IoT, 3D architecture, 5G push the demand for smaller chips, fueling the technology development in the industry. Meanwhile, we foresaw more policies introduced, posing an impact on the global semiconductor competition.

Two types of players that manufacture chips are foundry and integrated device manufacturer (IDM). In the semiconductor supply chain, a foundry only focuses on chips manufacturing, while an IDM involves in design, manufacturing, packaging & testing. The semiconductor manufacturing industry is a highly concentrated market, with the top 7 players have contributed 92% of the market share. In our research project, we covered four foundry players, TSMC, UMC, SMIC, GlobalFoundries, and two IDMs, Intel, and Samsung Electronics. This report is our first released report, containing four of the target company, TSMC, UMC, SMIC, and GlobalFoundries.

​

Overview of the complete version of this report:
(1) Industry Overview
(2) TSMC (OW)
(3) UMC (EW)
(4) SMIC (EW)
(5) GlobalFoundries (OW)

In each target company report, it contains:
(1) Investment Thesis
(2) Segment Revenue and Margin Forecast
(3) Valuations – Implied PE and EV/S valuation
(4) Company Summary
(6) Appendix – Financial Forecast


GET Research Team:

  • Reyna Kao (Research Head)

  • Helena Hung

  • Jacky Lam

  • Jeffrey Ng

  • Cheryl Chau

  • Edward Zhou

  • Sylvia Cao

​

[If you would like to receive the full version of this report including the key investment thesis, financials, and valuations, please comment on your email address under our LinkedIn post] You could refer to our first initiation (Andes, 6533 TT) to see the sample of a full version of CUIRS research.]

Global Equity Team
[Equity Research] - Semiconducter IDM Industry

April 17th, 2022

IDM is known as an integrated device manufacturer (IDM) in the semiconductor industry. An IDM involves design, manufacturing, packaging & testing processes. In our research project, we covered two IDMs, Intel and Samsung Electronics. They are noted as the two largest players in the market. 

​​

Overview of the complete version of this report:

(1) Intel

(2) Samsung

​​

In each target company report, it contains:

(1) Investment Thesis

(2) Segment Revenue and Margin Forecast

(3) Valuations – Implied PE and EV/S valuation

(4) Company Summary

(5) Appendix – Financial Forecast

​

GET Research Team:

  • Reyna Kao (Research Head)

  • Jacky Lam

  • Jeffrey Ng

​

[If you would like to receive the full version of this report including the key investment thesis, financials, and valuations, please comment on your email address under our LinkedIn post] You could refer to our first initiation (Andes, 6533 TT) to see the sample of a full version of CUIRS research.]

Global Equity Team
[Equity Research] - Alchip

April 18th, 2022

  • Stock: Alchip

  • Ticker: 3661 TT

  • Target Price: NT$ 1176.0

  • Closing Price (At Publication): NT$ 925

  • Up/Downside: +27.1%

  • Exchange: TWSE

  • Industry: Semiconductor IP / IC Design Service

  • Team: Arthur Tzeng, Gordon Tsui (GETA)

​

AlChip 世芯電子 (3661 TT) is a semiconductor design services company in Taiwan. AlChip mainly offers one-stop turnkey solutions from semiconductor design to manufacturing, assembling and packaging services to clients. AlChip specializes in application-specific integrated circuit (ASIC) production, mainly serving the use in high-performance computing. AlChip is advantageous in cutting edge process node design, particularly in 5nm and 7nm. Such advantages help AlChip grow out from Chinese customers and helps the company win numerous ASIC orders from prominent overseas customers (Amazon / Habana). We also believe AlChip can be a key beneficiary of China’s domestication of the semiconductor industry. With insufficient expertise and experience, AlChip’s design services help newborn Chinese semiconductor firms overcome technological barriers and catch up with international peers. The robust growth in orders from Chinese and overseas customers ensures AlChip’s long-term growth potential. We forecast a 27.1% upside potential from its latest closing price of NT $925 per share. Special thanks to Arthur (Haw Cherng) Tzeng and Gordon Tsui for generating this report.
 
Overview of the complete version of this report:
(1) Key Positive Thesis
(2) Key Negative Thesis
(3) Financial Forecast

(4) Valuation

(5) Company Summary
(6) Industry Summary
(7) Management Profile

​

​Please click the below button to download the full version of Alchip Report.

China Equity Team
[Equity Research] - Putailai New Energy Technology

April 19th, 2022

  • Stock: Putailai

  • Ticker: 603659 SH

  • Target Price: CNY 338.00

  • Closing Price (At Publication): CNY 129.60

  • Up/Downside: +60.8%

  • Exchange: SSE

  • Industry: Negative Electrode Materials

  • Team: Lily Zhan, Joshua Gao (CET)

​

Shanghai Putailai New Energy Technology Co.,Ltd. 璞泰來 (603659.SS) is a leading supplier of negative electrode materials for lithium batteries. The company is positioned at the top end of the market and has a leading gross margin. The company is currently focusing on increasing its production capacity and R&D investment. It is expected that its integrated production platform for the negative electrode business will be formed in the future. With the popularity of new energy vehicles and the expansion of industry demand, Putailai will maintain its leading position in the field of negative electrode materials. Considering the company's good growth prospects, CUIRS forecasts a CAGR growth of 32% in 22E-25E. We used the comparable company valuation method to give Putailai a 2025E P/E ratio of 28.0X and get our CNY 338 target price.Special thanks to Lily Zhan and Joshua Gao for generating this report. 
 
Overview of the complete version of this report:
Outline of this report.

(1) Investment Thesis

(2) Key Risk 

(3) Valuation

(4) Industry Introduction

(5) Company Profile

(6) Appendix: Financial Summary and Comparable Valuation Multiplier Table

​

[If you would like to receive the full version of this report including the key investment thesis, financials, and valuations, please comment on your email address under our LinkedIn post] You could refer to our first initiation (Andes, 6533 TT) to see the sample of a full version of CUIRS research.]

Global Equity Team
[Equity Research] - Rivian Automotive

May 12th, 2022

  • Stock: Rivian Automotive

  • Ticker: RIVN US

  • Target Price: USD$ 16.6 

  • Closing Price (At Publication): USD $ 20.6

  • Up/Downside: -19.2%

  • Exchange: NASDAQ

  • Industry: Electric Vehicle

  • Team: Arthur Tzeng, Dabby Ip (GETA)


Rivian is founded in 2009 by Mr. Robert Joseph Scaringe and listed its shares on the Nasdaq exchange in November 2021. The company has a mission to Keep the World Adventurous forever and is currently offering 3 products, including R1T, R1S, and EDV. Regarding its business model, Rivian has a vertically integrated ecosystem, comprising the vehicle technology platform, Rivian Cloud, product development and operations, products, and services. The vertically integrated technology platform addressed both consumer and commercial markets by collecting insights over the full lifecycle of the vehicles. Yet, the shares have declined 83% since the automaker's market cap peaked at $153 billion, which was $63 billion more than General Motors at the time in November 2022. Besides, due to supply chain constraints and limited top-line expansions with potential long term story changes and near term guidance risk, we initiated a “Sell Rating” of Rivian Automotive at US$ 16.6 Target Price Per Share with a potential -19.2% downside, reflecting our view that Rivian can be traded at 0 Enterprise Value and potential cash burns issues by the end of this year.

Overview of the complete version of this report:
Outline of this report.
(1) Investment Thesis
(2) Revenue Projections & Financials
(3) Valuation
(4) Product Comparison – Pick Up Truck
(5) Product Comparison – SUV
(6) Company Introduction

Global Equity Team
[Equity Research] - Tesla

May 16th, 2022

  • Stock: Tesla, Inc.

  • Ticker: TSLA US

  • Target Price: USD$ 697.79

  • Closing Price (At Publication): USD$ 769.59

  • Up/Downside: -9.32%

  • Exchange: NASDAQ

  • Industry: Electric Vehicle

  • Team: Arthur Tzeng, Angela Lo (GETA)

​

Tesla, Inc. is an American company founded in 2003 and listed its shares on the Nasdaq exchange in 2010. Its mission is to accelerate the world’s transition to sustainable energy. Tesla designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. It has four models now, which are Model S, Model X, Model 3, and Model Y. 
 
We are relatively positive about Tesla’s long-term deliveries as well as its leading position in the EV market, and we project our top line to bottom line in an optimistic way, yet we are cautious about the pricing. From our EV team’s discussion, we do think Tesla will still be the long-term winner, but it won’t be the only winner, at least it should be “one of the top EV makers”.
 
We are positive about its growth, while we witness three downsides that cannot make us overweight TSLA.
 
First, we believe the stock is still overvalued or at least will be challenging to sustain such a valuation level. The fundamental reason is that Tesla’s high valuation was based on investors’ conviction that Tesla could “dominate” the EV market in the future, with large-scale replacement of existing automakers. Yet, for pure EV space, we witness fierce competition coming that might limit the market share expansion of Tesla in the global market. 
 
Second, we think the recent rate hike and consistently high inflations with unsolved supply chain constraints from China lockdowns may cause the market to underweight the growing stock, and we had experienced a bull market ever since 2008, so it is important to re-evaluate the valuation level that market has given and think differently about how this stock should be price under the margin of safety.
 
Thirdly, there is uncertainty about Elon Musk’s acquisition of Twitter, though we agree that this won’t have a direct impact on Tesla’s operation, we do value a focused management and we think the volatility brought by the deal uncertainty is not a good signal, even it’s not a risk. 
 
As a result, we initiated an “Equal-Weight” of Tesla at US$ 697.79 Target Price Per Share with a potential -9.32% downside. 

Overview of the complete version of this report:
Outline of this report.
(1) Investment Thesis
(2) Revenue Projections & Financials
(3) Valuation
(4) Company Introduction 
(5) Product Information 
(6) Further Discussions

China Equity Team
[Equity Research] - Ganfeng Lithium

May 16th, 2022

  • Stock: Ganfeng Lithium, Co.Ltd.

  • Ticker: 002460 SHE

  • Target Price: RMB$ 225.0

  • Closing Price (At Publication): RMB$ 107.55

  • Up/Downside: 109.21%

  • Exchange: SHEX

  • Industry: Lithium 

  • Team: Lily Zhan, Cartie Ng (CET)

​

Ganfeng Lithium Co., Ltd. 贛鋒鋰業 (002460 SZ) is a leading lithium metals & compounds supplier, covering a wide swath of the lithium battery supply chain, from lithium resource development, refining and processing to battery manufacturing and battery recycling. The company is positioned the world’s largest lithium metal producer with lithium compound production capacity ranking third worldwide and the first in China. It is currently focusing on expanding its production capacity and R&D investment. Considering the soaring demand from fast-growing battery business, integrated lithium ecosystem and aggressive strategic acquisition and expansion plans of Ganfeng, we expect the company to remain its solid position in the field of lithium in the future. CUIRS forecasts a CAGR growth of 57% in 22E-25E. We applied the comparable company valuation method to expect a 2025E P/E ratio of 17.0X for Ganfeng and reach our CNY 225 target price. 
 
Overview of the complete version of this report:
Outline of this report.

(1) Investment Thesis

(2) Key Risk 

(3) Valuation

(4) Industry Introduction

(5) Company Profile

(6) Appendix: Financial Summary and Comparable Valuation Multiplier Table

Global Equity Team
[Equity Research] - BYD (1211 HK)

May 23rd, 2022

  • Stock: BYD

  • Ticker: 1211 HK

  • Target Price: HK$ 304.0

  • Closing Price (At Publication): HK$ 268.6

  • Up/Downside: 13.26%

  • Exchange: HKEX

  • Industry: EV, Battery, Semiconductor 

  • Team: Arthur Tzeng, Edward Choy (GETA)

​

BYD. Co. Ltd is a Chinese conglomerate company founded by Wang Chuanfu in 1995 and listed its shares on the Hong Kong Stock Exchange in 2002. Its mission is to change the world by creating a complete, clean-energy ecosystem that reduces the world’s reliance on fossil fuels. There are two major subsidiaries, BYD Automobile and BYD Electronic. The segments of automobiles, battery-powered bicycles, semiconductors, and rechargeable batteries make BYD the top manufacturer in the Automobile sector.
 
We estimate there will be a strong demand growth in both segments. It is believed that the launch of DM-i and DM-p and e-platform 3.0 can help BYD to win a huge number of deliveries in terms of PHEV and BEV. On the other hand, the establishment of FinDreams Battery, which is a subsidiary focusing on external sales of lithium-ion batteries and nickel batteries, can bring additional income to businesses on rechargeable batteries and photovoltaic business. Also, with the development of the Internet of Things (IoT) and Vehicle-to-everything (V2X), we believe the product lines of intelligent products and automotive intelligent systems will bring robust growth to Mobile handset components and assemble service segment.
After our group’s discussion, we initiated an “Over-Weight” of BYD at HKD$ 304 Target Price Per Share with a potential upside of 13.26%.


Overview of the complete version of this report:
Outline of this report.
(1) Investment Thesis
(2) Revenue Projections & Financials
(3) Valuation
(4) Company Introduction 
(5) Product Information 
(6) Further Discussions

Global Equity Team
[Equity Research] - Lucid

May 23rd, 2022

  • Stock: Lucid

  • Ticker: LCID

  • Target Price: USD$ 10.91

  • Closing Price (At Publication): USD$ 18.39

  • Up/Downside: -40.70%

  • Exchange: NASDAQ

  • Industry: Electric Vehicle

  • Team: Arthur Tzeng, Ian Chung (GETA)

​

Lucid Group, Inc is an American EV manufacturer founded in 2007. Lucid was listed on the NASDAQ exchange through a merger with a special-purpose acquisition company (SPAC) Churchill Capital IV Corp., which was one of the largest deals between a blank-check company and an EV startup. The company’s mission is to inspire the adoption of sustainable resources by creating captivating electric vehicles that focus on the driver’s experience. Lucid designs, develop, and manufactures electric vehicles and energy storage systems in the United States, Canada, and internationally. It has one model with four trim levels, which are Lucid Air Pure, Touring, Grand Touring, and Dream Edition.


We are relatively bearish about the long-term production and delivery targets of Lucid. Even though the Lucid Air is a phenomenal vehicle with class-leading technology, we are pessimistic about the future growth of the company, the three major downsides that resulted in our underweight rating for LCID are as follows:


First, we believe that it would be difficult for Lucid to reach its targeted delivery. As of 2022 Q1, Lucid has only delivered around 360 units, which substantially deviates from its targeted delivery in 2022 (2022 delivery target 12,000 – 14,000, implying a quarterly average of 3,000 – 3,500). Furthermore, quality control risks are substantial, the recent recall of over 200 vehicles can serve as proof.


Second, many legacy automakers such as GM and Volkswagen are focusing more on EVs. The automobile industry is capital-intensive, and we believe that it would be difficult for Lucid to retain a significant market share by only offering luxury models.


Lastly, even though the Lucid Air is equipped with impressive technologies, such as bidirectional charging and efficient powertrains, these advantages might cease to exist if deliveries are pushed back.


In conclusion, we initiate a “Sell Rating” of Lucid at US$ 10.91 Target Price Per Share, reflecting a potential -40.7% downside, In line with our bearish estimates.


Overview of the complete version of this report:

Outline of this report.

(1) Investment Thesis

(2) Financials & Revenue Projections

(3) Valuation

(4) Product Comparison – Luxury Sedans

(5) Company Introduction

bottom of page