Naas Technology Intrinsic Value Calculation – NaaS Technology to Invest $6.1M in Cash for 89.999% Stake in Sinopower Holdings
June 15, 2023
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NAAS ($NASDAQ:NAAS): NaaS Technology, a leading technology company, has just announced its plan to invest $6.1 million in cash for an 89.999% stake in Sinopower Holdings. This move is part of NaaS’s strategy to expand its presence in the Chinese market and gain access to a larger customer base. It provides a wide range of services, including Cloud Computing, Big Data, and Artificial Intelligence. The acquisition of Sinopower Holdings will provide NaaS with an opportunity to expand its operations in mainland China. Sinopower Holdings is a leading provider of integrated power solutions in China and is known for its cutting-edge technology and innovative approach to power distribution.
By acquiring Sinopower Holdings, NaaS will be able to tap into the Chinese market and leverage its expertise and experience in the power sector to become a major player in the sector. This move will undoubtedly open up new opportunities for NaaS to grow its presence in the Chinese market and provide an avenue for the company to establish its foothold in the power sector. It will also give the company access to a larger customer base, which is sure to provide a boost to its revenues in the near future.
Analysis – Naas Technology Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of NAAS TECHNOLOGY‘s financials. Our proprietary Valuation Line has calculated the intrinsic value of NAAS TECHNOLOGY share to be around $8.1. We have concluded that the stock is currently trading at $6.2, representing a 23.4% undervaluation. We believe that there is a good buying opportunity here for investors who can take advantage of the market’s mispricing of the company’s worth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Naas Technology. More…
| Total Revenues | Net Income | Net Margin |
| 92.81 | -5.64k | -4033.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Naas Technology. More…
| Operations | Investing | Financing |
| -250.03 | -5.61 | 260.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Naas Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.11k | 667.06 | 1.96 |
Key Ratios Snapshot
Some of the financial key ratios for Naas Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -6052.1% |
| FCF Margin | ROE | ROA |
| -270.0% | -818.1% | -317.4% |
Peers
They face stiff competition from other companies such as Volta Inc, Nuvve Holding Corp, and Zhejiang Supor Co Ltd, all of whom are at the forefront of the energy storage technology industry.
– Volta Inc ($NYSE:VLTA)
Volta Inc is a global energy and power technology company, primarily focused on pioneering innovative renewable energy solutions. It has a market cap of 149.46 million as of 2023, indicating the market value of its outstanding shares. Additionally, Volta Inc has a negative Return on Equity (ROE) of -82.46%, which means that the company is not generating wealth for its shareholders. This can be attributed to the high costs associated with pioneering new technologies and the fact that it is still a relatively new company.
– Nuvve Holding Corp ($NASDAQ:NVVE)
Nuvve Holding Corp is a publicly traded company on the NASDAQ stock exchange that provides energy storage and electric vehicle charging solutions. The company has a market capitalization of 46.04M as of 2023, indicating that it is a relatively small-cap stock. Its return on equity (ROE) is -74.73%, which means that its net income is negative relative to its shareholders’ equity. This suggests that the company has not been able to generate sufficient profits to cover its cost of capital and debt, leading to the negative return.
– Zhejiang Supor Co Ltd ($SZSE:002032)
Zhejiang Supor Co Ltd is a Chinese consumer goods manufacturing company based in Hangzhou, China. The company is primarily engaged in the production of cookware, kitchen appliances, and other small household goods. As of 2023, the company has a market cap of 42.58B and a Return on Equity of 22.45%, making it one of the largest companies in the consumer goods sector in China. Zhejiang Supor Co Ltd is a well-known brand in China with a high reputation and an extensive product line of kitchen appliances and cookware. The company’s strong financials and high ROE demonstrate its strong market position and profitability.
Summary
NaaS Technology recently made headlines for acquiring 89.999% stake in Sinopower Holdings for $6.1M in cash. Upon the announcement, the stock price of NaaS Technology fell, leading some investors to question the long-term implications of the move.
However, given the size of the acquisition, it is clear that NaaS Technology saw a potential in Sinopower Holdings and the value it could bring to its operations. For investors, this could be a good opportunity to buy into NaaS Technology as they may stand to benefit from the impact of the acquisition in the long run. Furthermore, with the acquisition, NaaS Technology may be able to capitalize on Sinopower’s experience in the power and energy industry and use it to their advantage. Overall, NaaS Technology’s move could be a smart decision for them in the long-term and investors should keep an eye out for any developments.
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