The Reason of Stock Price: Rising Corps and Falling Millet

category:Finance
 The Reason of Stock Price: Rising Corps and Falling Millet


In September last year, the companys stock price fluctuated in many rounds after its listing. After March this year, the companys stock price and market value became the third largest Internet company in China with a steep upward momentum. It surpasses Baidu, Jingdong, Pingduo and Netease, and its market value is close to 2.5 times that of millet.

On October 10, the companys share price again set its highest record, at HK$91 per share, or 132 per cent of the issue price.

As early as the company was still at a low ebb, a senior executive of an e-commerce listed company judged that the company was undervalued. On October 10, he told reporters that there are three factors that determine the value of the company: First, it is the first in its own field and far surpasses the second; second, its DAU (number of active users) is very high, and it is a kind of e-commerce and life service DAU, its business value is much higher than that of tools; third, its business model is mature.

Citing the Quest Mobile data he saw that day, the senior e-commerce executives said that the daily users of the groups comments ranged from 60 million to 70 million, which was much higher than that of their competitors, whose users were about 10 million. There are two countries in this field, with more than 60 million people in one country and 10 million people in one country, the former has achieved a far-ahead advantage.

According to the data released by the National Information Center in March this year, the market share of American Mission takeout is more than 64%.

Millet does not have the leading edge of the American Regiment. Millet started with mobile phones. In the country of mobile phones, there are Apple, Samsung abroad, Huawei, OPPO, vivo and other strong rivals in China. In its main field, millet is not far ahead.

Track selection is more important than effort, said the Fujitsu Securities Research Team, when analyzing the reasons for the rise in the American Regiments share price. The performance data show todays results, and the seeds behind the causes have already been planted.

Be the first, and go far beyond the second first.

After the founder of the hardware company questioned the difference between the share price of MIT and millet, it aroused the discussion interest of friends from all sides. One of them said to him, There are two companies in China that deliver, but there are more than a dozen companies that make mobile phones.

In the beginning, the business of the American League was also a multitude of participants. In the era of group buying, after the group became the leader in the 1000-regiment battle, it merged with the public comment from the opponent. In the era of takeout, we compete with Baidu takeout and hungry takeout market. After these wars, the American Regiment took the lead in the market of oxygen dioxide. Now, the delegation is hitting Ctrips liquor market.

In his most important mobile phone field, millet is not the first.

Millet mobile phone rose at the end of 3G and became a well-known brand in the 4G era. It is also known as Huawei OV together with Huawei, OPPO and vivo. It is one of the backbone strength of domestic mobile phone brands.

The coming of 5G era did not bring good news to millet, but the stock price declined all the way.

Zhang Yi, CEO of Aiwei Media Consulting, told reporters that among mobile phone manufacturers in the 5G era, Huawei has the highest certainty. The standard is built by him, the network is built by him, and at the same time, he is developing his own operating system and chips. As a competitor of Huaweis mobile phone, whether Xiaomi can stand firm in the 5G era, the future is unknown. Zhang Yi said.

According to the Futuo Securities Research Team, the life service industry that the company is engaged in includes food consumption, Hotel reservation, tourism related services, transportation services and other services. The industry scale is 18.4 trillion yuan, the online scale is 2.7 trillion yuan, and the trillion-level market. In the future, the industry scale and online penetration rate will both rise.

In the second quarter, the number of users and gross profit margin of the companys core takeout business increased dramatically, leaving room for its future development.

Companies that can support hundreds of billions of dollars in market capitalization are bought by investors of $1 billion and $800 million. These people dont look at short-term ups and downs, they care about long-term development. Zhang Yi told reporters that this is the reason why the capital market is optimistic about the United States Mission.

Be able to fight, and to confront giants

The current value of the company, in fact, has been basically available since last years listing. However, after last years listing, the companys share price experienced many ups and downs, once falling below the offering price, from HK$69 to HK$45. Why did it fall before and rise against the market this year?

Hu Biwei told reporters that he felt it was related to the companys Q2 profit. In the second quarter of this year, the big losers made profits for the first time. For the first time in a single quarter, its adjusted profit was 1.492 billion yuan (a loss of 7.7 billion yuan in the same period last year), which exceeded market expectations. The companys share price rose by 8.86% on the same day.

The key point of the companys Q2 financial declaration is that the gross profit of takeaway business has doubled and the adjusted operating profit has been corrected for the first time. Previously, the market expected to achieve profit-loss balance in takeout business by 2020. The takeout data exceeded market expectations, giving the capital market a boost.

The top executives of the above-mentioned e-commerce companies stressed to reporters that the market share is more important than profit. If you continue to consolidate and expand your leading edge upwards, you will make profits at the same time. Thats very good. If its only profitable and the market share shrinks, then its no good. In fact, its meaningless to make a profit.

Judging from the stock price chart, the companys share price continued to rise from March this year, and then all the way up. The ups and downs represent a shift in the capital markets perception of the competitiveness of the company, according to senior analysts at the above-mentioned e-commerce companies. Later, we found that the market is not so efficient in spending money. If you cant kill him, he will be pushed up again.

According to the senior management of the e-commerce company, the life service business can not be won only by spending money on subsidies. For example, if you prepare a lot of money for a big promotion one day, the result will be a rainstorm, and then it will be all yellow. There are many fine operations in this industry, which take time.

Beginning with the group purchase in 2010, the group launched the Iron Army, sweeping the streets according to the neighborhood-by-neighborhood merchants and doing dirty work that big companies are unwilling to do. After that, these abilities constitute the competitiveness and barriers of the group. Does the beauty troupe win the first-mover advantage of hunger in the takeout era?

Its valuable, and its better to have social value.

After discussing with many friends, the founder of the hardware company said to the reporter, The simplest way to measure the value of the company is the value contribution of the company to society.

At the beginning of millets birth, millions of Huaqiangbeis Shanzhai mobile phones were driven away and quickly occupied a place in the mobile phone market with the mode of high quality and low price. According to the founders, what Millet did was simple at first, but not valuable afterwards. It was difficult at first to do what the group did, and then it could provide positive value for the industry and consumers.

Internet observer Yin Sheng, who has previously put the value of the American League alongside other large platforms such as BAT, told reporters that the more successful economic platforms in the market at present have a cornerstone, that is, they can improve the efficiency of the whole society and its economic fields, not just themselves. Just as Tencents social tools improve communication efficiency, Alis e-commerce products improve the efficiency of shopping and supply chains, Baidus search improves the efficiency of information acquisition, and Metro improves the efficiency of the catering industry.

According to the reporters understanding, the delegation is continuing to cultivate the catering industry. In addition to takeout, the company has entered the new food retail and supply chain links, and enabled businesses to provide technical digital upgrades to enter the 2B field.

Zhang Yi told reporters that high-profit business associations are the focus of the delegations efforts. These practices will help to enhance the value of the companys platform.

Source: Responsible Editor of Economic Observation Network: Yang Bin_NF4368