Xiaomi Group broke the first day of listing, and it rose nearly 13.1% on the second day. The closing price was 19 Hong Kong dollars yesterday. The turnover was nearly 10 billion yuan and the total market value was 425.1 billion Hong Kong dollars. Among the investors who bought Xiaomi, there are also many 'big households'. According to Tencent, Xiaopeng Automobile Chairman He Xiaopeng said in the WeChat circle of friends that he is firmly optimistic about Lei Jun and Xiaomi. He has bought and owned more than 100 million US dollars of millet stock through the secondary market for two consecutive trading days.
Yesterday's opening, the stock price opened higher, the increase once expanded to 15%; Finally, its closing price reached 19 Hong Kong dollars, the total market value reached 425.15 billion Hong Kong dollars, about 54.17 billion US dollars.
Market value: less than 2 billion difference from US stocks Jingdong
Among the Chinese Internet giants, Xiaomi's current market value is approaching Jingdong. According to US stocks' closing data on Monday, Jingdong's market value is about 55.89 billion US dollars.
Xiaomi founder, chairman and CEO Lei Junfa Weibo said: 'These two days are like a dream... the kind of people are not too bad luck!'
Lei Jun said: 'The two days of listing experience, let us be more grateful, thank you all who trust us, support us! At the same time, let us be more confident, more determined to go their own way: to do 'moving people, price is kind' good Products, let everyone around the world enjoy the wonderful life brought by technological innovation!'
Yesterday morning, Lei Jun also drew a photo of wearing a hole trousers on Weibo, commemorating the break of the Xiaomi IPO on the first day. He said that he would always remind himself to cheer.
According to the Hong Kong Hang Seng Index Company announced yesterday, the Xiaomi Group will be included in the Hang Seng Composite Index, the Hang Seng Global Composite Index, the Hang Seng Internet Technology Industry Index, and the constituents of the relevant index will be released in July, as the Xiaomi Group meets the requirements of the Hang Seng Composite Index for rapid inclusion in the Index Rules. Effective from the 23rd.
Broken hair: 4 years ago, institutional investors were quilted
On July 9, Xiaomi landed on the Hong Kong Stock Exchange and was listed. The opening price on the first day was HK$16.6, which was 2.35% lower than the issue price of HK$17.
When talking about the problem of breaking the hair, Lei Jun said that because the recent big trend is not good, the short-term stock price is not the most important, and the long-term price is the most important. Lei Jun said that IPO is a new beginning from the low point, not necessarily a good thing. The first is Adjust the mentality, and secondly, do the company well, in order to support the hundreds of thousands of investors who support us.
Millet's closing market value was $47.9 billion that day, close to the valuation of three and a half years ago, when international investors valued $45 billion in Xiaomi.
In December 2014, Lei Jun announced on Weibo that Xiaomi completed a new round of financing with a financing amount of US$1.1 billion and a company valuation of US$45 billion. Participating investment institutions include All-Stars All-Star Fund, Singapore Sovereign Fund GIC, Xiaomi's previous round of DST and Ma Yun's Yunfeng Fund.
On July 8, Lei Jun said in an open letter that the first VC's first $5 million investment had a return of 866 times. However, the funds invested in December 2014 were not so lucky, and their returns were not high, eliminating all types of The cost of capital factor, now does not make money or even lose money.
According to statistics, as of June 30, 13 Chinese companies listed in Hong Kong in the first half of 2018 fell below the issue price on the first day of listing, accounting for 68.42%.
Analysis: Why can millet rise?
Affected by the rise in Xiaomi's share price, yesterday's A-share millet stocks rose 1.92%, ranking second in the concept sector. At the close, Quanzhi Technology's daily limit, Zhiqiang, Yitong Century, Senba sensing successively pulled to the daily limit , a total of electro-acoustic, Fenghua Hi-Tech, Star Technology, etc. rose more than 5%, Tongyi shares, Fenda Technology, Yuhuan CNC, etc. also have varying degrees of rise.
Xiaomi broke on the first day of listing, and the stock price rose sharply the next day. The market is more concerned about its rising logic. Analysts believe that the first thing is that Lei Jun said at the Xiaomi celebration party that night that 'the investor who wants to buy Xiaomi’s stock on the first day of listing will earn one. The news came that the market's confidence in Xiaomi has been greatly boosted. Secondly, Xiaomi will be included in the Hong Kong Hang Seng Series Index, which means that Xiaomi Group will become the Shanghai-Hong Kong Stock Connect investment target, and A-share investors can borrow Hong Kong stocks. Buying millet stock.
In the purchase of Xiaomi's stockholders, there is no shortage of 'big households'. According to Tencent, Xiaopeng Automobile Chairman He Xiaopeng said in the WeChat circle of friends that he is firmly optimistic about Lei Jun and Xiaomi, and also bought the second-tier market through two consecutive trading days. Has more than 100 million US dollars in stocks.
Valuation: Differences in judgment criteria
For the valuation of Xiaomi, the market judgment is the opposite.
According to the closing price of Xiaomi on the first day of listing, the closing price of Xiaomi was 16.8 Hong Kong dollars. The market value of Xiaomi was 375.9 billion Hong Kong dollars, about 48 billion US dollars, not only far from the once-popular valuation of 100 billion US dollars, but also the first day of listing, actually lower than the discount.
For the previous valuation of Xiaomi, the market has a very different view. The reason for different valuation methods is mainly the different positioning of Xiaomi. At present, the mainstream positioning of Xiaomi in the market is hardware companies or Internet companies, and at the same time due to IoT (Internet of Things) and The consumer goods business has grown the fastest among the three major businesses of Xiaomi, and there are also analysis to benchmark Xiaomi with small household appliances.
Soochow Securities industry analysts said that the particularity of Xiaomi is that most of its revenue comes from hardware sales, but it is different from the US, Gree and other manufacturing companies, it also has nearly 200 million Internet users. This comes from the valuation of the manufacturing industry, Xiaomi is too expensive; the valuation of the Internet, the price of Xiaomi.
Xiaomi founder Lei Jun mentioned that many people can't understand Xiaomi. They think that there are many innovations in Xiaomi, whether it is a hardware company, an e-commerce company, or an internet company. 'Our idea is very simple, what is rice noodle, what do we offer? , step by step. Through the efforts of the past 8 years, we have made more than 100 kinds of products. '
As for the performance of future stock prices, some investors said that they do not rule out the trend of opening and closing.
Rating: Xiaomi will be included in the FTSE China 50 Index
The international index preparation company FTSE Index announced that it will officially introduce Xiaomi (01810.HK) into the FTSE China 50 Index after the market close on July 13, and will officially take effect on July 16, at the same time, ZTE (00763) Will be removed on the same day.
In addition, for the Xiaomi Group's market outlook, most institutions have given a good rating. Macquarie ranked the Xiaomi Group's 'Outperform' rating in the research report, with a target price of HK$30, which is higher than the HK$17 offer price. About 76.5%, if compared to yesterday's closing price, Xiaomi Group still has nearly 60% upside.
Well-known institution Macquarie released a research report saying that optimistic about Xiaomi's competitiveness and business model, the target price is 30 Hong Kong dollars, which means that the expected stock price is almost doubled compared with the broken stock price. Macquarie believes that compared with other mobile phone equipment vendors Xiaomi is more able to monetize its users and is similar to the Internet and e-commerce peers. The gross profit rate of Xiaomi Internet Service is 60%, which is much higher than the overall 13% of the group. The company has the ability to use the MIUI system in Xiaomi mobile phone from the user. At the same time, Macquarie expects Xiaomi's earnings per share to grow at a compound annual growth rate of 40% from 2018 to 2020, and gives a 'outperform' rating. The bank also expects that Xiaomi Group's smartphones will come out. The compound annual growth rate of cargo volume from 2018 to 2020 is 30%, reaching 221 million units by 2020, and the global market share is 14%, mainly driven by the growth of the Indian market and the market share of Southeast Asia, Europe and China. It is expected to be 2018. By 2020, the annual growth rate of shipments in the Indian market will be 15%, mainly driven by smart phone penetration, Internet users and 4G network upgrades.