Zeekr Steps On IPO Accelerator As Its Prospects Run Low On Fuel
Portfolio Pulse from The Bamboo Works
Zeekr Intelligent Technology Holding Ltd. is accelerating its U.S. IPO process amid declining valuations for Chinese NEV makers, including peers Li Auto (NASDAQ:LI) and Nio (NYSE:NIO). Zeekr's revenue growth slowed significantly in the second half of last year, and it now aims to raise around $500 million, down from an initial target of over $1 billion. The broader market for Chinese companies listing in the U.S. is weak, and NEV stocks are underperforming due to concerns over a slowdown in China and Western limits on Chinese-made NEVs.
April 10, 2024 | 3:03 pm
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NEGATIVE IMPACT
Li Auto's valuation is under pressure, with its price-to-sales ratio currently at 1.84, but it risks falling below 1 as market conditions worsen.
Li Auto's valuation is closely tied to market sentiment towards Chinese NEV makers, which is currently negative. The article indicates a broader slowdown in the NEV market and specific challenges facing companies like Li Auto, suggesting a potential short-term negative impact on its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Nio's valuation has already suffered, with its price-to-sales ratio falling below 1, indicating negative market sentiment towards the company.
Nio's current valuation reflects broader market concerns about the sustainability of growth for Chinese NEV makers. The article highlights the company's declining valuation and the challenging market environment, suggesting a continued short-term negative impact on Nio's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares MSCI China ETF (MCHI) has shown some signs of recovery, up about 10% from a recent low, despite the underperformance of NEV stocks like Nio.
While the article points to a general downturn in the Chinese NEV sector, it also notes a recent recovery in the broader market for offshore-listed Chinese stocks, as evidenced by the performance of MCHI. This suggests a potential short-term positive impact on MCHI, despite the challenges facing specific sectors like NEVs.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60