Original title: Xiaomi is about to go public, four questions remain to be solved, and the industrial chain and ecological chain are all sorted out
With the implementation of the reform of Listing Rules in Hong Kong on April 30, a large number of new companies are preparing to go to the battlefield of Hong Kong stock market, causing a big wave of 'new economy' storm in Hong Kong stock market. Xiaomi may lead the way for new shares with different rights.
According to Hong Kong media, Xiaomi submitted an application for listing on May 2. It will be listed from the end of June to the beginning of July at the earliest, and will be offered in mid June. The market is expected to raise at least US $10 billion (HK $78.5 billion), which is expected to become the largest amount of new shares raised this year and the largest amount of new shares since AIA in 2010.
Previous media reports said that the sponsors of Xiaomi's IPO in Hong Kong include CITIC Securities (600030, Guba), Gaosheng and Morgan Stanley; Xiaomi hopes that the IPO valuation will reach US $90-110 billion and the P / E ratio will be 60 times. Another source pointed out that Xiaomi was expected to make a profit of 7.6 billion yuan last year, with a profit margin of 6.5%. Xiaomi's main businesses include mobile phones, Internet services, Internet of things and consumer products.
Xiaomi goes all out to prepare for listing
Although the above news has not received an official response from Xiaomi, it seems that Xiaomi is making a comprehensive preparation for its launch in terms of personnel adjustment and new product actions recently.
On April 28, Xiaomi CEO Lei Jun announced a series of personnel appointment and change information through an internal letter. According to the email, Zhou Shouzi, Xiaomi's CFO, will also serve as the company's senior vice president, while Zhou Guangping and Huang Jiangji, two of Xiaomi's eight co founders, resigned from the company for personal reasons.
In addition, Hong Feng, Liu De, Wang Chuan and Qi Yan were appointed as senior vice presidents of the company. The intelligent product department was merged into the ecological chain department, and Tang Mu was appointed Vice President of the ecological chain department, reporting to Liu De. According to the analysis of people close to Xiaomi, the adjustment is to optimize the management before IPO.
At the same time, Xiaomi continues to push forward new product sales and the expansion of offline stores. It is reported that the launch of Xiaomi 7 will be held at the end of May, and it is speculated that the bracelet will also appear at the same time. According to the poster circulating on the Internet, Xiaomi announced that Xiaomi 7 would hold a press conference on May 23 with '7 has been waiting for a long time'. It should be noted that the authenticity of the so-called poster has not yet been confirmed by the authorities.
Four highlights of listing
What are the highlights of Xiaomi's listing? According to the analysis of Phoenix technology, the following points are worthy of attention.
Question 1: will the net profit margin of Xiaomi hardware never exceed 5%?
This is probably the most concerned issue of the whole industry recently. After all, Xiaomi doesn't just make mobile phones. Lei Jun said that the upper limit of net profit margin of hardware is too wide, and it affects too many industries. According to Lei Jun, Xiaomi's ecological chain has penetrated more than 100 industries.
First of all, let's find out what the 'comprehensive net profit margin' is?
It has been explained by the media that if you multiply a single Xiaomi mobile phone, such as Xiaomi mix2s, by 5%, you can earn 164.95 yuan for this 3299 yuan mobile phone, but this is not a comprehensive net profit margin.
Comprehensive net profit after tax is an overall concept, which is the net profit rate obtained by dividing the operating revenue by the operating revenue after deducting various costs and expenses, including R & D, sales, advertising, etc.
Of course, the so-called 'financing promotion materials' do not come from the official Xiaomi, but some of them may come from the information of early investors selling old stocks. Therefore, if we think these figures are credible, there is a margin between 2.8% and 5%.
Well, the real data depends on the prospectus. Therefore, by checking the prospectus submitted by Xiaomi at that time, we will be able to know whether the figure of 5% will be shameful, which will be one of the biggest highlights of the prospectus.
Question 2: how many shares does Lei Jun hold in Xiaomi?
Before media reports, Lei Jun shares in Millet even as high as 77%. But before the prospectus is released, this figure can only be seen. I believe we all want to know how many shares Lei Jun has in Xiaomi. After all, it may have something to do with the title of China's rich this year.
In addition, Xiaomi is expected to become one of the first listed companies in Hong Kong with the same share but different rights. In other words, the voting rights of some stocks held by the management are much greater than those of common stocks. In short, according to the new deal of the Hong Kong stock exchange, Lei Jun may own a number of stocks and have super voting rights. Compared with common stocks, the 'voice power' has at least one top two shares and at most one top 10 shares. In theory, if Lei Jun owns all the super voting shares, at least 9.1% of the special equity can guarantee more than 51% of the voting rights and firmly control the company.
In addition, the employees of Xiaomi No. 1000 will achieve different degrees of financial returns after the company goes public. In the latest personnel adjustment, Zhou Guangping and Huang Jiangji, two co founders of Xiaomi, resigned their management positions for personal reasons. Usually, without a company position, there will be less restrictions on the realization of shares after listing.
If the shares held by Xiaomi executives are disclosed in the prospectus, according to a reasonable valuation range, how much will their value become after the listing of Xiaomi? This is also a matter of concern to everyone.
Question 3: after Xiaomi goes to Hong Kong stock market, will it go to a stock market?
Not surprisingly, Xiaomi should be the first listed company after the implementation of the new deal of the Hong Kong stock exchange. At the same time, the domestic A-share CDR news is also constant.
At the beginning of this year, there were a lot of rumors about CDR. A number of Chinese Internet listed companies have stated that they will return to a, and Xiaomi is also said to be listing Hong Kong shares and a shares at the same time through Hong Kong + CDR. There are various legends, which have been guessed as the suspense drama of the year.
Now that Xiaomi is listed in Hong Kong, half of the rumors have been confirmed. Next, will there be any news about CDR in the near future? It can be seen whether this information is mentioned in Xiaomi's Hong Kong prospectus.
Question 4: will Xiaomi's valuation exceed 100 billion?
The valuation of Xiaomi ranges from US $50 billion, US $80 billion to US $100 billion. Which is accurate? This is a question about how to look at the valuation model of Internet companies.
The valuation of Internet companies focuses more on the number of users, customer acquisition cost and profit growth of enterprises, that is, the growth of enterprises. Apple's market value is 840 billion US dollars, with a price earnings ratio of about 18 times; Tencent's market value is 3720 billion RMB, with a price earnings ratio of about 43 times; Amazon's market value is 750 billion US dollars, with a price earnings ratio of about 320 times.
How high the valuation Xiaomi can stand depends on whether the data in the prospectus shows enough growth. Based on the previous public reports, compared with the mobile phone business, the revenue and gross profit level of ecological chain products and Internet services with greater profit contribution imagination are more worthy of attention.
Related millet industry chain and ecological chain companies
The report of China Merchants Securities (600999, Guba) points out that Xiaomi has a unique way to grasp the pain points of market segmentation, take hardware as the starting point, improve the cost performance of products, build its own product supply chain system, combine with the Internet, form an IOT ecosystem, break away from the traditional Internet traffic business model, and build a product retail enterprise.
CITIC Securities believes that "we are strategically concerned about the growth of Xiaomi company itself and its growth space in the fields of mobile phone, eco chain hardware and Internet of things. In addition, MIUI based software, Internet and financial services are expected to contribute more revenue. In the medium and long term, Xiaomi is expected to advance to a truly leading international technology company. In addition, millet industry chain and ecological chain companies have successively landed in the capital market, and the investment value of related companies is worth studying. '