After 8 years of hard work, Xiaomi realized its achievements from 0 to listing. Its market value has also become a topic of everyone's relish. Recently, on this issue, Lei Jun expressed to the public at the Xiaomi Investment Promotion Conference, 'This 550-700' Billion-dollar pricing, that is, I don’t want to set a price, will it not be worth US$55 billion?” Then he also said that Xiaomi’s valuation will be the value of Apple multiplied by Tencent.
This news came out and attracted countless attention. Why did Lei Jun dare to say this? You know, Tencent’s latest market value is about US$477.5 billion, and Apple’s latest market value is about US$911.562 billion. Multiplying the two, the result is 4370 trillion yuan. US dollar. Even if Xiaomi’s valuation is 100 billion US dollars, the gap is still very far behind. In contrast, Xiaomi’s combination of Apple’s hardware and Tencent’s Internet is more reasonable.
Lei Jun said that the gross profit margin of Xiaomi's hardware in last year's financial report was 8.7%. In his opinion, this is Xiaomi's most outstanding place. The data disclosed in the prospectus shows that Xiaomi had 70% of mobile phones, IoT and 20% of consumer goods last year. The Internet service is approaching. 10%. Last year's net margin was 4.7%. We can see from Xiaomi’s revenue data that smart phones still account for the majority of Xiaomi's revenue. For the time being, Xiaomi prefers a hardware-based company. .
As part of Xiaomi’s triathlon, the Internet also occupies a significant proportion. In the past three years, Xiaomi’s Internet revenue accounted for 4.9%, 9.6%, and 8.6% respectively. Before the IPO, Lei Jun pointed out that from 2018 Initially, the comprehensive net profit margin of Xiaomi hardware will not exceed 5%, and the burden of profits will naturally be placed on Internet services. The prospectus shows that advertising is the largest source of income for Internet services, and other Internet service revenue is mainly From online games.
For the sake of future higher valuations, Xiaomi has always wanted to change the image of hardware companies that are inherent in people’s hearts and become an Internet company. Therefore, Lei Jun’s position on Xiaomi is a “unique new species” and he believes that its valuation should be that of Tencent’s adoption of Apple. Lei Jun also said that new species often have no natural enemies and can quickly spread and grow rapidly.
