HK IPO Subscription | Minglue Technology, is Tencent the daddy? No, the real daddy is someone else...
Want to see$MININGLAMP-W(02718.HK) Conclusion at the bottom
【IPO Details】
【Company】
Minglue Technology is a provider of enterprise-level data intelligence application software in China, with Tencent as the largest shareholder, holding about 27%, but founder Wu Minghui still retains 53.54% voting rights.
By 2024 revenue, the company is the largest data intelligence application software supplier in China, with a market share of 3.8%, facing fierce competition.
【Products】
The company's business includes marketing intelligence + operational intelligence, split roughly 50-50.
The company's application enables enterprises to collect, integrate, manage, and utilize data in daily operations, generating insights that significantly improve marketing and operational efficiency.
Miaozhen Systems: Composed of three major products—media spend optimization software, social media management software, and user growth software.
Jin Data: Business data management.
Weiban Assistant: Private domain tools for the Tencent ecosystem (WeCom/WeChat).
By client revenue, the largest client F is Yum China$YUM CHINA(09987.HK) subsidiary Huansheng Information (a wholly foreign-owned enterprise under Yum China engaged in software and IT services in Hong Kong, Macau, and Taiwan), with order contributions of 11.9%, 24.4%, 19.3%, and 18.9% in past periods.
Minglue Technology increased its stake in Mingsheng Pinzhi in May 2022 (co-founder/president Jiang Ping serves as its CEO), leading to higher order confirmations from Yum. This is also why operational intelligence revenue surged in 2023. On October 15 this year, Minglue and Huansheng signed a smart services framework agreement, valid until the end of 2027, strengthening cooperation. The second-largest client B is an FMCG company, with relatively stable orders from the top two, consistently in the top 5.
Meanwhile, Tencent$TENCENT(00700.HK) order contributions were 3%, 2.7%, <2%, and 4.1% over the years, not forming a revenue dependency, but consistently serving as the top supplier of technical services (Tencent Cloud).
【Financials】Volatile revenue, barely turning profitable, mediocre.
Revenue: 12.69, 14.62, 13.81, 5.65, and 6.44 (in RMB 100M), with little fluctuation around 1.4B, from the order changes of the largest client Huansheng (Yum China), it can be seen that Yum contributed almost all incremental changes, meaning other clients lacked growth, merely maintaining stability in this fiercely competitive environment, with slight growth in 2025.
Gross margin: 53.2%, 50.1%, 51.6%, 50.6%, and 55.9%.
Adjusted net profit: Excluding fair value changes, the shift from loss to profit was mainly due to cost-cutting in three areas, especially R&D expenses.
R&D team: 1135, 875, 755, and 714, significant layoffs, but stable proportion, meaning overall staff also shrank sharply.
【Industry】In the self-defined "data intelligence software" sector, the company's market share is only 3.8%, let alone the SaaS industry, fiercely competitive, benefiting from early-mover advantages (Tencent, Kuaishou, Sequoia).
【Valuation】Market cap of RMB 20.3B, P/S of 13.9, very expensive. In the data intelligence sector, Bairong Cloud-W only counts its BaaS insurance cloud business (RMB 500M) as second place, market cap of RMB 4.45B, P/S of 1.38, revenue of RMB 3.2B with stable growth. Even if Minglue is part of the Tencent ecosystem, the 10x valuation gap is staggering, the goal is obvious: leverage W-share status to enter the Hang Seng Index at RMB 20B, even at the mid-cap threshold of 212.35, there's only 5% upside.
Incidentally, Minglue's valuation has halved severely, only rebounding somewhat in 2024 and post-IPO.
【Margin】7.5x, total of RMB 700M, unpopular.
【Placement】Mechanism B10%, 18K lots, not much.
【Cornerstones】7 firms, 45.1%, including major shareholder Tencent, Jingtai Holdings$XTALPI(02228.HK) , GFH of the Gulf Cooperation Council, etc., with no other PE or individuals. Early investors include Tencent, Sequoia, Huaxing Capital, Kuaishou$KUAISHOU-W(01024.HK) , Huaxing Capital$CR HOLDINGS(01911.HK) , etc.
【Sponsor】CICC, average.
Subscription: Pass
Minglue Technology is part of the Tencent ecosystem but has little revenue dependency, only using Tencent Cloud, real dependency is on Yum China's orders, overall revenue lacks growth, barely turning profitable through massive layoffs and cost-cutting, fundamentals mediocre, valuation very expensive, having halved severely before, pricing near Hang Seng Index inclusion threshold, limited upside, 18K lots with low allocation odds.
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