Black Sesame Details Valuation for RMB800 Million Chip Design Acquisition

An announcement from Black Sesame International Holding Limited ( (HK:2533) ) is now available.

Black Sesame International Holding Limited has provided further information on its previously announced acquisition of a 60% equity interest in a target company, disclosing that an independent valuer has appraised 100% of the target’s equity at approximately RMB800.87 million as of the valuation date. The valuation was based on a market approach using an Enterprise Value-to-Sales (EV/S) multiple, reflecting the availability of comparable listed companies in the domestic capital market and the target’s status as a technology R&D-focused, loss-making SoC chip design firm with significant intangible assets and relatively high leverage. The company and its independent valuer determined that asset-based and income approaches were unsuitable, as they would fail to capture the target’s intangible value or would rely excessively on subjective assumptions, indicating a preference for a valuation method that better aligns with market expectations for the chip design industry and underscoring the strategic nature of the acquisition for Black Sesame’s positioning in the semiconductor sector.

The most recent analyst rating on (HK:2533) stock is a Sell with a HK$20.50 price target. To see the full list of analyst forecasts on Black Sesame International Holding Limited stock, see the HK:2533 Stock Forecast page.

More about Black Sesame International Holding Limited

Black Sesame International Holding Limited is a Cayman Islands–incorporated company listed on the Hong Kong Stock Exchange that operates in the integrated circuit and chip design industry, with a core focus on system-on-chip (SoC) chip design. Its business relies heavily on intellectual property, including patents and algorithms, as well as research and development capabilities and technological barriers, positioning it as a technology R&D enterprise within the semiconductor value chain.

Average Trading Volume: 9,896,429

Technical Sentiment Signal: Buy

Current Market Cap: HK$13.3B

Learn more about 2533 stock on TipRanks’ Stock Analysis page.