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Bairong has three main revenue generating segments: data analytics services, precision marketing services and insurance distribution services. As of FY19, data analytics accounted for 41.4% of revenue, with the next largest segment being precision marketing at 32.1% of revenue and insurance distribution making up for the rest.
Over 2017-19, Bairong’s revenue grew 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit expanded 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period. However, its 9M20 performance hasn’t been great and some of its provided data appears to be tricky to reconcile.
We have looked at various aspects of the deal in our earlier notes, Bairong Pre-IPO - Largest independent big-data analytics provider and Bairong Pre-IPO - Earnings forecast, Peer comparison and valuation. In this note, we will talk about the updates from its recently filed PHIP.
Bairong Pre-IPO
Bairong, an independent AI-powered technology platform in China serving the financial services industry, plans to raise around US$500m in its Hong Kong IPO. According to F&S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.Bairong has three main revenue generating segments: data analytics services, precision marketing services and insurance distribution services. As of FY19, data analytics accounted for 41.4% of revenue, with the next largest segment being precision marketing at 32.1% of revenue and insurance distribution making up for the rest.
Over 2017-19, Bairong’s revenue grew 3.56x or at 88.8% CAGR. While its data analytics revenue increased by 66% over the period, its precision marketing services revenue grew 22.6x, and insurance distribution grew 54.5x. Over the same time, gross profit expanded 3.99x and adjusted EBITDA, PAT and OCF all turned positive during that period. However, its 9M20 performance hasn’t been great and some of its provided data appears to be tricky to reconcile.
We have looked at various aspects of the deal in our earlier notes, Bairong Pre-IPO - Largest independent big-data analytics provider and Bairong Pre-IPO - Earnings forecast, Peer comparison and valuation. In this note, we will talk about the updates from its recently filed PHIP.
Underlying
Bairong
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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