Shares were repurchased 19 times a year after being listed, and the market value was “halved“. What happened to Xiaomi?

2020-08-02 19:56:08 0 Comment 765 views
abstract

At this time last year, the total market value of Xiaomi's opening on the first day reached 371.4 billion Hong Kong dollars. One year later, Xiaomi's

Shares were repurchased 19 times a year after being listed, and the market value was “halved“. What happened to Xiaomi?

On July 9, it was just the first anniversary of Xiaomi’s "ring the bell" announcement on the Hong Kong Stock Exchange. At this time last year, the total market value of Xiaomi's opening on the first day reached 371.4 billion Hong Kong dollars. One year later, Xiaomi's market value was only 228.378 billion Hong Kong dollars, and its stock price fell to 9.5 Hong Kong dollars, a 44.12% drop from the issue price of 17, almost "halved."

Shares were repurchased 19 times a year after being listed, and the market value was “halved“. What happened to Xiaomi?Shares were repurchased 19 times a year after being listed, and the market value was “halved“. What happened to Xiaomi?

Since May this year, Xiaomi has carried out 19 repurchases, costing more than 1 billion Hong Kong dollars to repurchase over 105 million shares in an attempt to restore market information through this move, but did not expect that the decline in stock prices has not stopped .

What's wrong with Xiaomi?

The mobile phone business is declining, can AIOT make a comeback?

For Xiaomi in 2019 All of the mobile phone manufacturers are in the “winter.” The national smartphone market is fully saturated, and the lens modules, panels and other fields are in a red sea."It has become a key word in the mobile phone industry in recent years.

IDC data shows that in the fourth quarter of 2018, Xiaomi’s share of domestic mobile phones dropped significantly: domestic shipments were 10.3 million units, down 35% year-on-year. In the quarter, although global smartphone shipments fell by 6.6%, Huawei and vivo mobile phone shipments grew against the trend, up 50.3% and 24% year-on-year; Xiaomi’s mobile phone shipments were only 27.9 million units, which was similar to Huawei (59 million units). A big gap.

In order to seek "breakthrough" in the growth of the mobile phone market, Xiaomi made a bold decision at the beginning of the year: independent of Redmi, stubbornly "cost-effective", and Xiaomi attacked the mid-to-high-end market and feature segmentation For example, Xiaomi CC focuses on the female market, etc.

However, Redmi’s "returning to the world" has limited boost to Xiaomi’s mobile phone business. In the first half of this year, the Xiaomi brand only releasedThere are two mobile phones, namely the Mi 9 series and the Mi CC9 series. Among them, the Mi 9 series has been criticized by consumers due to the "insufficient supply" problem, and the market response of the CC9 series is still to be investigated.

Mobile phones are declining, can the AIOT field help Xiaomi recover? Previously, Xiaomi reaped the first pot of gold in the IOT market with its "big and complete" ecological chain product layout. Whether it is revenue, the scale of ecological connection, or the number of wake-ups of the "Xiao Ai" voice assistant, Xiaomi has been recognized as the leader. Department players. According to statistics, the revenue of Xiaomi's IOT and living consumption increased by 87% year-on-year to 43.8 billion in 2018. In four years, the revenue of this field has increased by more than 9 times, and Xiaomi has successfully ranked first in the smart home camp.

In spite of this, Xiaomi’s AIOT business is still full of challenges. Yang Jianyong, senior consultant of the Internet of Things, believes that Xiaomi’s IOT business revenue growth is mainly attributed to the production of smart TVs and bracelets.The rapid deployment of modern products, of which smart TVs and notebooks have 18.2 billion yuan in revenue, accounting for 41.55% of IoT and consumer product revenues, while other eco-chain products are relatively less brilliant.

At the same time, traditional home appliance manufacturers such as Gree and Midea, mobile phone manufacturers such as Huawei and OPPO, and Internet companies such as BAT are also working on IOT, and the smart home industry market competition is becoming increasingly fierce. "In other words, whether the growth of Xiaomi's AIOT business can continue in the future remains to be examined." Yang Jianyong said.

The market value was "cut in half", and Xiaomi stalled in China?

Although Xiaomi’s AIOT business is developing rapidly, it is expected to drive Xiaomi’s overall revenue to "recover", but the market value of the company suffered a "half" in the first year of listing, which still makes many investors help Xiaomi in the future. The development prospects are squeezed.

Recently,Xiaomi has frequently challenged the company's business lines. It has successively established a group staff, a group organization department, and three group-level committees. It has also added and established six Internet business units. In addition, Lei Jun, the founder of Xiaomi, has returned to the mobile phone business of Xiaomi China after many years. He is the president of China, and he is fully responsible for business development and team management in the region.

In view of the reasons for the adjustment, industry insiders analyzed that, on the one hand, the adjustment is to adapt to Xiaomi’s growing staff and business scale, but on the other hand, it is also to re-adjust the company’s "route" and revitalize the mobile phone. And other areas of the market. At this point, Lei Jun regained control of the China region and announced the establishment of an "offline business committee" to strengthen offline sales channels. This is the best proof.

Where will Xiaomi’s market value and stock price go from now on? Although many investors have reported wait-and-see and negative attitudes, many brokerage firms are optimistic about Xiaomi's performance growth. according toReuters analysts quoted by CITIC Securities predict that Xiaomi's revenue and profits will continue to rise in the next three years (including 2019). Although the recent market value performance is unsatisfactory, it is indeed a process of "de-bubbling". In the future, there are still big opportunities for enterprise development.

[Reporter] Xu Jun

[Author] Xu Jun

[Source] Southern Press Media Group Southern + Client

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