2017-投资界电子周刊No0555-英文版_11页_505kb

PEdaily E-Magazine Issue No. 555 Summary

Core Content

The PEdaily E-Magazine Issue No. 555, published on October 26, 2012, is a weekly publication targeting professionals in the private equity (PE) and venture capital (VC) industries. It provides in-depth market analysis, investment news, industry insights, and data observations, with a focus on the Chinese PE/VC market. The magazine is published by Pedaily.cn, which leverages its extensive investor network and over 10 years of research resources from the Zero2IPO Group to deliver timely and accurate market reports.

Main Views

• Primary Market Valuation Trends:
  In 2012, the primary market valuation in China showed a downward trend due to the slowdown in economic growth and the weakness of the secondary market.

  • The Zero2IPO Research Center conducted a survey of over 100 active VC/PE institutions.
  • 70% of the surveyed institutions reported an average P/E ratio of 7.5-12.5 times, while 85% considered the 5-10 times range as reasonable.
  • The Shanghai and Shenzhen A-share markets had an average P/E ratio of 13 times, suggesting that current primary market valuations are close to the reasonable range.

• Investment Activity Highlights:

  • Bohai Goldstone Investment Fund and Richlink Equity Investment Fund invested RMB100M in Synear Food Holdings Co., Ltd. through a debt-to-equity swap. This was a notable RMB PE fund investment in a red chip company during its privatization process.
  • HNA Group acquired a 48% stake in French airline Aigle Azur for US$40M, which is close to the EU's 49% ownership limit for foreign investors in local airlines.
  • Medtronic, a US medical company, acquired Kanghui Medical and 19% of Lifetech from Orchid Asia, despite Lifetech's low earnings. This highlights the high valuation in the medical industry.
  • Facebook acquired Instagram for US$715M, down from the previously rumored US$1B, involving stocks and cash with additional stock compensation for Instagram staff.
  • Yelp acquired Qype, Europe's largest comment website, for US$50M, indicating a strategic move to strengthen its presence in the European market.

Key Information

• Market Valuation:

  • The primary market valuation in China is considered reasonable by most VC/PE institutions.
  • The P/E ratio of 7.5-12.5 times is reported by 70% of institutions, with 5-10 times being the most optimistic range.

• Investment Deals:

  • Synear Food received RMB100M investment from Bohai Goldstone and Richlink Equity.
  • HNA Group acquired 48% of Aigle Azur for US$40M, close to the EU ownership limit.
  • Medtronic acquired Kanghui Medical and 19% of Lifetech, showing interest in the medical sector.
  • Facebook acquired Instagram for US$715M, involving stock and cash.
  • Yelp acquired Qype for US$50M, expanding its European footprint.

• Company Plans:

  • Jishi Media planned to set up a limited partnership enterprise with its subsidiary, Jishi Media Venture Capital Co., Ltd., with an estimated registered capital of RMB1B.
  • The initial plan included a RMB510M contribution from Jishi Media, but the culture industry development company was not established due to shareholder changes.

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