Sina Technologies News reported on the morning of November 20, according to the Hong Kong Economic Daily, millet surrendered its expected quarterly performance and expected a short-term rebound in stock prices after that. However, the high valuation and the bottleneck in the development of the mainland market indicate that there is still a long way to go for Chairman Lei Jun's promise of "doubling the share price after listing".
Millet's stock price surged 5.1% to 13.6 yuan after closing yesterday. But in the bear market, the current price is still 20% lower than the 17 yuan price at the beginning of July, due to slow sales and high valuation in the mobile phone market. Millet surrendered its expected quarterly results this time, and the overall atmosphere of Hong Kong stocks has improved. Short-term beneficiary stock price tested 50 antennas (14.11 yuan yesterday).
Still classified mobile phone valuations are expensive.
However, the market still classifies millet as a smartphone company, which contributed 69% of revenue last quarter. Assuming that millet's adjusted net profit in the fourth quarter is the same as that in the previous quarter, this year's P/E ratio will be 32 times, much higher than that of Apple (AAPL) and Samsung Electronics (Korea: 005930). Four brokerages, including Bank of America Merrill Lynch and Macquarie, have lowered their earnings forecasts for millet in the past two weeks. The forecast range for next year's P/E ratio ranges from 13 to 21 times. In other words, the current price of millet is "on the high side" in terms of the medium and long term.
The slowdown in the growth of mainland business revenue is also a major obstacle for millet to maintain its profit performance. Of the company's revenue of 50.8 billion yuan last quarter, the mainland market contributed 28.5 billion yuan, slowing down to 20.9% annually. Although revenue from the international market has risen by 113% to 22.3 billion yuan, most of them reflect that the company has opened up western European markets such as France since May this year, and the growth sustainability of overseas markets remains to be seen.
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