Rate Of Return
Likes Received[HK IPO] Mobvoi, an AI company focusing on AI and voice interaction
Mobvoi, with generative AI and voice interaction technology at its core, provides AI-generated content (AIGC) solutions, AI enterprise solutions, smart devices, and accessories. According to a CIC report, in terms of confirmed revenue in 2022, it held a 1.4% market share in China's AI voice technology and natural language processing (NLP) software solutions sector, ranking third. On the other hand, in the rapidly growing AIGC field, the company is one of the few market participants in Asia capable of building its own large-scale models. Its self-developed large model, "Sequence Monkey," has multimodal generation capabilities, able to understand and generate human-like text, audio, images, and videos.
The company began its IPO on April 16, with an offer price range of HKD 3.7 to 4.1 per share, 1,000 shares per lot, a minimum subscription amount of HKD, a market capitalization of HKD 5.519 billion to 6.115 billion, and an issuance volume of 84.568 million shares. It belongs to the application software industry and has a greenshoe option.
The sponsors are China International Capital Corporation (CICC) and CMBI. The sponsors' overall performance is decent, with CICC-sponsored projects generally having strong market stabilization capabilities. CMBI has not sponsored any projects in the past two years, so its past performance is not available for reference.
There are two cornerstone investors: Zhongguancun International Limited and Jingkai Juzhi. Based on the mid-point of the offer price, the cornerstone investors have subscribed to a total of HKD 95 million, accounting for 28.71% of the total issuance. The cornerstone proportion is average, with a lock-up period of six months.
China has prioritized the development of AI technology as a strategic focus, becoming one of the global leaders in the AI market. According to a CIC report, China's AI market size (by revenue) increased from RMB 56 billion in 2018 to RMB 194.2 billion in 2022, with a compound annual growth rate (CAGR) of 36.5% from 2018 to 2022. It is expected to reach RMB 644.8 billion by 2027, with a CAGR of 27.1% from 2022 to 2027. China's AI market share of the global AI market rose from 11.2% in 2018 to 13.9% in 2022 and is expected to reach 16.3% by 2027.
According to a CIC report, China's AI voice and NLP software solutions market is relatively fragmented. Among Chinese AI companies, the company ranked third in terms of revenue from AI voice and NLP software solutions in 2022. In 2022, the group's revenue from AI voice and NLP software solutions reached RMB 302.9 million, accounting for approximately 1.4% of the market share by revenue.
Next, let's look at the company's operational performance. From 2021 to 2023, the company's revenue was RMB 398 million, RMB 500 million, and RMB 507 million, respectively, with a year-on-year growth of 1.37% in 2023. From 2021 to 2023, its net profit was RMB -276 million, RMB -670 million, and RMB -803 million, respectively, with a year-on-year growth of -19.83% in 2023.
On a non-IFRS basis, the adjusted net profit for 2023 was RMB 17.535 million.
The company has undergone multiple rounds of financing before its IPO. The last two rounds were in 2017 and 2019, with shareholders' cost price at USD 0.4848 per share. Converted to HKD, this is only a 2.68% discount to the current mid-point offer price, which is close to the offer price.
There are three new listings in the past two days: ChaPanda, Tianjin Construction Development, and Mobvoi, which is launching its IPO today.
ChaPanda has strong performance but a large float and no cornerstone investors.
Tianjin Construction Development is a small-cap stock in a traditional industry, prone to significant volatility, with a speculative component.
Mobvoi is in the AI sector, which is currently very hot. Conceptually, I am more optimistic about Mobvoi.
Let's look at the subscription sentiment. The current subscription multiple is 0.51x. It's only been two hours since the IPO launch, so this level of subscription sentiment is quite good.
Subscription Strategy:
Mobvoi is an AI company focused on generative AI and voice interaction, ranking third in China's AI voice and NLP software solutions market. The sponsor is CICC, which has strong market stabilization capabilities. The cornerstone proportion is 28.71%, which is average, but among the three new listings in the past two days, only Mobvoi has cornerstone investors. The adjusted net profit for 2023 was positive, which is quite good for an AI company. The cost price of shareholders from the last two pre-IPO financing rounds is close to the mid-point offer price. The AI sector is currently very hot, and the Hong Kong IPO market is showing signs of recovery. The subscription sentiment in the first two hours is also good, I plan to participate in the subscription!
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