Hong Kong after the listing one months, Millet ended the quiet period, the major foreign investment banks have published research paper singing more millet. After a break on the first day of the IPO, Millet's market capitalisation was almost halved within one months, but according to Bloomberg data, analysts still believe Millet shares will rise 22% from the Wednesday closing price in 12 months. In Thursday, the millet dish was once up by 8%.
At the close, the millet group rose 5.48% and reported 18.08 Hong Kong dollars.
The big foreign investment banks have sung more millet: What do they see? Most investment banks believe that Millet's revenues and profits will rise as Millet's focus on Internet services and its share in China's hardware market increases.
Morgan Stanley expects a 2018-2020-year net profit growth rate of 61% per cent, and CICC expects the compound growth rate of millet income and profits to be 45% and 60%, respectively. Morgan Stanley in the paper to be a "overweight" rating, the target price of HK $20. Morgan Stanley said that millet products and efficiency is the group's success factor, through competitive price products to enhance market share. The "Iron Triangle" business model of the beneficiary group ' hardware + Internet + new retailing ' is expected to have a composite growth rate of 61% for 2017-2020 non-international accounting standards earnings year.
However, Morgan Stanley also believes that the value of millet than Alibaba and Tencent have a slight discount. Credit Suisse gave Millet a ' neutral ' rating, with a target price of HK $18.6, still slightly above current. According to Credit Suisse, as the fourth-largest smartphone supplier in the world, it is now in its infancy to expand the IoT ecosystem through Internet services and its vast customer base, and will gradually commercialize its overseas market in the future. Credit Suisse praised Millet for producing stunning products at an honest price, improving the market's impression of ' made in China ' smartphones and lot.
Credit Suisse believes that the next step for Millet is to prove its ' hardware + Internet + new retail ' ' iron triangle ' model overseas, that is, the Indian market can also be successful. JPMorgan's rating of the millet ' overweight ' was priced at HK $21. Millet is one of the fastest-growing smartphone and smart lot hardware providers in the world, its research report notes. JPMorgan expects Millet to grow at a much faster pace than its peers, with a compound growth rate of 40% and 59% per cent of earnings from 2017 to 2020. JPMorgan pointed out that the future growth of millet stocks is driven mainly by: (1) expansion of the new Market smartphone share (Europe and South-East Asia will be the focus of the 2018, and Latin America will be the focus of 2019); (2) The expansion of the global influence of the Millet intelligent hardware and lot products (led by LCD TV); (3) The Mau growth of Chinese and overseas markets and the rise of China's monetization;
(4) Overseas markets, such as India's early monetization. In addition, the previous article on Wall Street read that Goldman awarded the Millet ' buy ' rating, the target price of HK $22.
Goldman Sachs said that the potential catalysts for millet stock prices include an increase in the market share of Chinese smartphones, operating in more overseas markets or launching new products, benefiting from the rise of users and advertisers, the continued increase in revenue from Internet services, and the ability to make overseas Internet services monetization. Deutsche Bank also awarded the Millet ' buy ' rating, the target price of HK $23.2. The Bank of research reported that Millet has a strong position to subvert the global smartphone market and the IoT industry, and has the potential to become a home brand like Apple, Samsung and Nintendo.
Deutsche Bank believes that the key advantage of Millet is its products cost-effective, and the latest product Mi8 smartphone success, means the brand has the ability to enter the market of high average price products, can broaden the customer. The major investment banks also pointed out the future risk of millet in the research paper. Morgan Stanley and JPMorgan also said that Millet would face competition from other domestic handset brands, such as Huawei, OPPO and Vivo handsets. Morgan Stanley believes that the smart phone market is highly competitive and cyclical, millet may be faced with the challenge of promoting brand image.
In addition, Morgan Stanley believes that the growth of millet Internet services also depends on the success of smartphones, and secondly, the millet ecosystem is still in the early stages of monetization, visibility is low. The risks listed in Credit Suisse include a slowdown in Mau growth in China and the failure of the overseas smartphone market (India) to expand. JPMorgan also pointed out that large Internet platforms, such as Tencent's WeChat, occupy most users ' Internet time.
With Google likely to enter China, especially if Android Playstore a comeback, it will bring no small competition.
Millet Company will release the latest earnings on August 22. The big foreign investment banks have sung more millet: What do they see?