The resumption of Xiaomis cards will collapse! Just after the financing plan was exposed, the market value fell by 40 billion

category:Finance
 The resumption of Xiaomis cards will collapse! Just after the financing plan was exposed, the market value fell by 40 billion


In the morning of December 1, Xiaomi was temporarily suspended. In the afternoon, Xiaomi announced the financing plan of issuing bonds and rights issue shares. Xiaomi resumed trading at 1:00 p.m., and its share price plummeted for a time, falling by more than 10%, and then narrowed. By the time of publication, Xiaomis share price fell by 6.5%, and its stock price was HK $24.45, with a total market value of HK $591.5 billion, which was more than HK $40 billion evaporated from yesterdays closing.

Xiaomi groups issuance of bonds and rights issues raised nearly US $4 billion (about HK $31 billion). Xiaomi said the money will be used to increase working capital to expand business, invest to increase market share in major markets, invest in strategic ecosystems and other general corporate purposes. After the resumption of trading, due to the decline of its share price, the maximum evaporation of Xiaomis market value exceeded HK $60 billion.

At present, ASUS, black shark, Lenovo, LG, Meizu, Motorola, Nubia, realme, Yijia, oppo, sharp, vivo and ZTE are also the mobile phone manufacturers that will carry the snapdragon 888.

Since the beginning of this year, Xiaomis share price has risen by more than 127% since the beginning of the year. During this period, the highest price of Xiaomi stands at HK $27.6, setting a new record high.

Mobile phone sales in the third quarter ranked the third in the world, leading to divergent views

In terms of smart phone business, Huaweis mobile phone shipment has shown an obvious downward trend after the recent pressure on chip supply, and the vacant market space is quickly filled by Xiaomi. This trend has been shown in the recent statistical data of the global mobile phone market.

According to a report released by Gartner, Xiaomi surpassed apple for the first time with 44.4 million units in the third quarter of this year, with Apples sales of 40.5 million units in the current quarter, and Xiaomi has the strongest growth among the top five smartphone manufacturers in the world.

Recently, many big banks look at the stock price of many millet. CICC, Credit Suisse, Bank of communications, Goldman Sachs and other institutions improved their stock price ratings. Among them, CICC raised the target price of millet to HK $34. It is recommended to pay attention to the change of Xiaomis mobile phone market share.

However, some institutions are not optimistic about the future of Xiaomi. After Huawei sold glory last month, Citigroup issued a research report, pointing out that glory and Xiaomi have fierce competition in the mainland, and there is also a large degree of overlap in the market and sales channels. As the competitiveness and structure of glorys future are still unclear, I believe that the market may need to lower its expectation on Xiaomi, which will bring down the companys profit and valuation risks. Although the bank has a positive view on Xiaomis recent development, it believes that its risk return is not attractive. This transaction may bring downward risk to the company. It has been rated as sell with a target price of HK $19.3.

The Bank of America report believes that Huaweis sale of glory mobile phone brand business will not pose a threat to Xiaomi in the long run. Different from Huaweis medium and high-end strategy, glory aims at medium and low-end markets. It is estimated that glory accounts for about 30% to 35% of Huaweis shipping volume. Without separation from Huaweis system, without scale, core R & D resources and channel support, glory will be hard to compete with local leading enterprises such as Xiaomi, oppo and vivo. The bank maintains Xiaomis buy rating with a target price of HK $26.

Source of this article: Chen Hequn, editor in charge of securities times_ NB12679