Chapter 2670 High Valuation Is Not Necessarily Good

In Hong Kong in December, the weather is still very warm. At best, the sea breeze around Victoria Bay is a bit stronger, which makes people feel chilly.

In the past two months, Meitu Sharing held a feast in Hong Kong. Capital from all over the world flocked in to snatch the shares of Meitu Sharing, which boosted the entire Hong Kong stock market.

Up to now, Meitu Sharing has been listed for half a month, and the stock price is still rising steadily, reaching 515 Hong Kong dollars per share, an increase of more than 22%, which has also increased the wealth of all shareholders on paper. 6.2 billion US dollars, and rose by 2 places on the rich list.

According to analysts at JPMorgan Chase, the current price of Meitu Sharing should be the highest price in the near future. After all, their global business is still expanding, and they want to form a global influence and make a big breakthrough in profits. At least two or three years later.

However, neither JPMorgan Chase nor Goldman Sachs analysts believe that the value of Meitu Sharing, a photo-sharing overlord with global development potential, is too high. They think it will be a very good investment to hold for a long time.

However, 515 Hong Kong dollars a share is still overvalued in the Hong Kong market.

Many people in the stock industry have proposed a stock split, which means that the current stock price of Meitu Sharing will be split into five, and each share will become 103 Hong Kong dollars, and correspondingly, the total share capital of Meitu Sharing will change. Into 5 billion shares.

The purpose of doing this is to prevent the stock price from being too high, so that the public cannot buy more.

Hearing the proposal from the Hong Kong Stock Exchange, Feng Kelun and his team thought about it, and finally agreed. In the next few months, this project will become a reality.

Xiao Qi has a lot of authority over the sharing of Meitu, and Feng Kelun is Xiao Qi's brother-in-law, so he naturally has a lot of power.

However, Meitu is no longer the most concerned topic in Hong Kong. It is another company that has long been circulated among stockholders and investors-Fairy Guardian Company.

The company founded by Xiannv Company was rumored to be listed in Hong Kong half a year ago. Moreover, the publicity in the past two months has become more and more frequent, which means that the road show is not far away.

In the eyes of outsiders, compared with Meitu Sharing, a company invested by Xiao Qi, Fairy Guardian Company is the real son of Fairy Company.

Since its official launch in January this year, with the most excellent mobile phone protection technology, the number of Fairy Guardian users has been increasing.

Even if the fee has been implemented, it will be until the end of November. Fairy Guardian has more than 200 million paying users, and its annual revenue is expected to exceed 2.5 billion US dollars, which is much higher than the profit margin of Meitu Sharing.

Moreover, according to the investigation of experts in the electronics industry, the number of paying users of Fairy Guardian is not increasing enough. The main reason is that there are not enough smartphone users. It will usher in the addition of more paying users.

There will be at least 4 billion smartphone users in the future, which is a conservative estimate. Fairy Guardians can occupy at least 1 billion people.

This amount of income alone can reach 12.5 billion US dollars a year, which is an incredible income!

Coupled with the very low operating costs of network software, Fairy Guardian only needs to focus on virus prevention and research and development. It is enough to do a good job in continuously upgrading services. The cost is basically spent on the laboratory.

Therefore, the annual gross profit margin of Fairy Guardian is at least 8 billion U.S. dollars, which is basically equivalent to the annual profit of Berkshire Hathaway in 2008.

Yes, you read that right, Berkshire Hathaway is the company of Warren Buffett, known as the most profitable fund company.

The profitability of a small software company can match Buffett's decades of accumulated strength. Why doesn't this make Hong Kong investors happy?

And in the midst of the Hong Kong Stock Exchange fueling the flames, after the success of Meitu Sharing, the valuation of Fairy Guardian has skyrocketed. also has been increasing.

Originally in November, everyone's valuation of Fairy Guardian was 30 billion U.S. dollars. But Meitu Sharing has skyrocketed to a market value of 51.5 billion US dollars. Leaving aside its influence, its profitability is currently far exceeding its Fairy Guardian. Why is it only 30 billion US dollars?

Capital is all about profit. Everyone is willing to hype Fairy Guardian as a company that is more successful than Meitu Sharing. The Hong Kong Stock Exchange also intends to regard Fairy Guardian as an exciting success legend, so countless people are reacting to Xiao Qi , The price of this IPO, shall we raise it a little?

Xiao Qi couldn't laugh or cry at this.

No matter how high your IPO price is, the key is that after you go public, it will continue to rise.

If the price is already sky-high at the time of the IPO, then after the IPO, the stockholders will not see the stock rise in their hands, but it will continue to decline. Is this interesting?

Of course, that's not what those people mean. They have been in the stock business for decades, and they know how to measure, and they will definitely not let the fairy guard go beyond the limit.

It's just that the valuation of 50 billion US dollars is too high, almost equal to the market value of Hua Guo Life Insurance, which ranks tenth in Hong Kong.

If after the listing, let this group of people stir up a lot of speculation, I don't know if it will exceed the market value of Cheung Kong's 1 trillion Hong Kong dollars.

It is actually not a big problem for a company with a future annual revenue of 12.5 billion U.S. dollars and a gross profit rate of 8 billion U.S. dollars to have a market value of more than 100 billion U.S. dollars.

But the problem is that the potential value of the Hong Kong stock market is not high. After a beautiful picture is shared, it is also a fairy guard. Can they bear it?

After the Fairy Guardian and Meitu sharing are accommodated, will it backfire and cause the Hong Kong stock market to lose its vitality sharply?

Don't come here to revitalize the Hong Kong stock market, but in the end it turned out to overwhelm the Hong Kong stock market!

So Xiao Qi considered this question for a long time, and finally decided to let the IPO price of Fairy Guardian rise to 40 billion US dollars, and then it will not change.

After this news was reported by financial reporters in Hong Kong, major investment banks found it incomprehensible. The current profit of your fairy guard is 2 billion US dollars, and the future is expected to exceed 8 billion US dollars. The IPO price is only 40 billion US dollars. How can it be worthy of its status as the world's number one mobile phone security protection software?

But at the same time, I don’t know how many experts and stockholders in Hong Kong are praising Xiao Qi for his “kind heart”, thinking that Xiao Qi set such a low price because he wanted to make ordinary stockholders in Hong Kong rich.

Of course, with the experience and lessons shared by Meitu, the total number of shares of Fairy Guardian this time is initially set at 5 billion shares. If it is not suitable, it is not impossible to increase it to 10 billion shares. will be all.

What makes shareholders full of confidence is that although Fairy Guardian has already operated independently, its chairman is still Xiao Qi, and it will continue to be like this after listing.

Although Lai Qingteng, who is the CEO, will always control the company's R&D and operations, but as long as Xiao Qi is still the chairman of Fairy Guard, everyone will think that Fairy Guard belongs to Xiao Qi's company.

Lai Qingteng is a Chinese-American. Before coming to Fairy Guardian, he worked in Microsoft for 22 years and served as the vice president of Microsoft's security protection department. Sun Manxue's excellent work ability was favored by him, so he was recommended to Xiao Qi and became the CEO of Fairy Guardian Company.

This time the listing roadshow is also led by Lai Qingteng. A total of seven cities are set, starting from New York in the United States and ending in Hong Kong in China. For this reason, they need to travel all over the world.

But Lai Qingteng and his team have no complaints, not only because this is the first time a subsidiary of Fairy Company goes public, but also because they all own shares in Fairy Guard, which belongs to all Fairy Company employees.

In addition to the previous 290,000 veteran employees, there are more than 210,000 newly recruited employees who will more or less own shares in Fairy Guardian.

All the shares were distributed by Xiao Qi in the name of the half-year bonus and year-end bonus. Of course, there are many grades in it. Executives get more than ordinary employees, and old employees get more than new employees, but the least can Get shares worth 20,000 to 30,000, and they are original shares. Once listed, there will be an increase of at least 50%.

If you are willing to keep it, the dividends of Fairy Guardian Company will also be very good. Xiao Qi is not those stingy company bosses in the Huaguo stock market. Most of the dividends will be given to shareholders every year to ensure that they can get rich returns.

It is precisely because everyone has such great benefits that Lai Qingteng and the others will work so hard. At the same time, they also know that they carry the hope of more than 500,000 Fairy Company employees, so they also have a very glorious sense of mission and want to make The listing of Fairy Guardian Company was done beautifully, and everyone praised and admired them.

With such a mentality, they traveled all over seven cities in Asia, Europe and the United States within a month from early December to early January, which was also tireless.

As for whether anyone will buy it, there is no need to worry about it.

Before they set off, countless fund companies and angel companies came to find them, wanting to subscribe for some shares in advance, so as to get a ride on the fortune.

The stocks of good companies are so popular! (to be continued ~^~)