In May 3rd, Xiaomi submitted the IPO prospectus to HKEx in the early morning, which is expected to become the first listed company in Hong Kong after the HKEx cancelled the same rights restriction. However, with the exposure of millet business data disclosed in the prospectus, the topics such as financial data and valuation of millet also caused controversy.
Before millet submits IPO application, there are Hong Kong media reports that millet is selling shares before listing in the stock market. The price of the stock sale shows that the company's valuation is between 65 billion and 70 billion US dollars. There have been many versions of millet valuation before, and no comment has been made on millet.
After millet submission IPO application, the interface News reported, from close to the millet IPO investment bank to learn, millet Hongkong IPO plan to raise $10 billion, the latest valuation of $100 billion. The person said that this valuation is not the final number, the bank will be adjusted according to demand. That is to say, the current valuation of millet may eventually change with the market, but it will not change the enthusiasm of the market for millet.
Recently, the Wall Street journal and Bloomberg also quoted sources familiar with the matter, said Xiaomi's IPO valuation target has been reduced. The Wall Street Journal reported between 70 billion and 80 billion dollars, Bloomberg reported between 60 billion to 70 billion dollars.
Sina Technology, which is close to the millet IPO project, said that before the Wall Street daily forecast, the estimates for the millet IPO were mainly between $70 billion and $100 billion before the Wall Street daily forecast, and Wall Street Daily's forecast was not out of a reasonable range.
The source also pointed out that the agency, including the Wall Street journal, was predicted by third parties, and millet group itself did not release any news. Despite various external conjecture, millet and sponsor are relatively safe, priced at $70 billion as the benchmark, which also left enough room for the latter.
In fact, the main controversy about the millet valuation lies in the need to judge whether millet is a mobile phone company or the Internet Co, which will affect whether millet is a company to the standard apple or a company.tencentCompanies like that will influence the valuation model of millet.
Millet prospectus shows that Xiaomi's revenue is divided into 4 business segments, namely, smart phones, IOT and consumer products, Internet services and others. In 2017, the revenue of millet was mainly from smartphones. In 2017, the revenue from the smartphone industry was 80 billion 563 million yuan, accounting for 70.3% of the total income; revenue from IOT and consumer products was 23 billion 447 million yuan, accounting for 20.5%, and revenue from Internet services was 9 billion 896 million yuan and 8.6%.
But in terms of gross margin, Internet services are much higher than hardware. The gross interest rate of Internet service in 2016 and 2017 was 64.4% and 60.2% respectively; the gross interest rate of smartphones rose from 3.4% in 2016 to 8.8% in 2017; and IoT consumer products were 8.2% and 8.3% in 2016 and 2017, respectively.
On the eve of the listing of millet, Lei Jun announced that the board of directors passed the red line of the future net profit of millet hardware after tax less than 5%. The analysis said that this is the intention of the Lei Jun to communicate to the outside world that it will not rely on hardware to make money in the future, that is, millet is a Internet Co, not a simple Hard Suits Inc.
Cloud serviceThe Internet business of Finance and film industry, and the new retail business including the millet mall, the whole network electricity supplier, the millet family and Mi Jia products.
At present, it is not easy to find a company that matches the overall price of millet to calculate the valuation. According to the media analysis, the development of millet business and the form of business model are still far from mature and stable. The capital market should prepare for a new set of value evaluation thinking and model.