Racer expanded to 200% on the first day of its Hong Kong stock listing, surpassing Baidu, Xiaomi and Jingdong in total market value.
According to media sources, Racer’s first day of listing in Hong Kong shares expanded to 200%, with turnover of more than 10 billion Hong Kong dollars, the latest total market value of 1.41 trillion Hong Kong dollars, the total market value of more than Baidu, Xiaomi, Jingdong. Netizens spouted that the universe is invincible as long as they brush up on their fast hands.
According to NetEase Finance, on February 5, Racer landed on the Hong Kong Stock Exchange and held a listing ceremony at 9:00 am.
Suhua, co-founder, chairman and CEO of Racer, said that he hopes to use the power of technology to let labor and creation release more energy and let value creators get a better return.
Cheng Yixiao, co-founder and chief product officer of Racer, said he hoped to create a community with the most temperature and trustworthiness, so that those who have perseverance will have perseverance, and those who have perseverance will have perseverance.
The report said that the night before the IPO, the total market value of Racer reached 1.38 trillion Hong Kong dollars. The first day of the listing expanded to 200% with a turnover of more than 10 billion Hong Kong dollars, the latest total market value reached 1.41 trillion Hong Kong dollars, the total market value of more than Baidu, Xiaomi, Jingdong.
Some investors said that by winning one hand of Crypto, you can earn about 19,000 yuan, although the winning rate of one hand is as low as 4%, a new record.
The research team at Futu Securities said Racer will also rise, with a market cap of up to HK$2.1 trillion.
Based on fundamental research, Fudao Securities said it judges that Racer’s revenue is expected to maintain high growth in the next five years. Considering Racer’s accelerated commercial realization of its traffic, the revenue scale is expected to rise from 39.1 billion yuan in 2019 to 201.9 billion yuan in 2024, corresponding to a 5-year CAGR of about 39%.
Therefore, under an optimistic estimate, based on a perpetual growth rate of 3.5% and a discount rate of 6.29%, the equity value of Racer is expected to reach HK$2.1 trillion; even under a pessimistic valuation, based on a perpetual growth rate of 2.50% and a discount rate of 8.29%, the equity value of Racer will still reach HK$1.1 trillion.
Northeast Securities media industry analyst Song Yuxiang also believes that Racer, as a leading decentralized short video/live content community in China, is currently in a period of accelerated commercialization. As Racer gradually opens up commercialization paths in dimensions such as advertising, e-commerce, Education and games, the company’s commercialization growth is just in Time.
In terms of performance, Song Yuxiang expects Racer’s e-commerce GMV to exceed 350 billion in 2020, far exceeding the 250 billion yuan target at the beginning of the year. And Racer Top 200 e-commerce anchors GMV contribution does not exceed 25% overall, showing that the platform has a small dependence on head anchors and a healthy ecology.
Xu Yingbo, chief analyst of technology industry at CITIC Securities, mentioned that short-form video advertising has not yet fully entered the stock competition stage, and that Racer is accelerating its advertising inventory and unit price, while also actively acquiring advertiser resources to accelerate the expansion of commercialization opportunities. The future continues to be bullish on the growth potential of its online advertising and the investment opportunities it brings.
Netizens seem to have a different view than the securities elite. Many lamented that this is a “crazy world”, “you can always get rich by not doing your job”, “you can’t do anything, but you’re number one in making money”, “this is how capital plays, making a quick buck” and “this is how capital plays. is the play of capital, earn fast money, earn and run.”
Netizens said that a short video market value is so amazing, and there is no technology content, call other industries how to feel at ease to engage in industry? “All on the Internet brush brush fast, we will be invincible in the universe!”
Also according to “21 Financial Circle” reported that the prospectus of Racer shows that at present, Racer’s shareholders include Tencent, Sequoia Capital, Baidu, Temasek, Boyu Capital, Morningside Capital and so on.
Among them, Tencent is the single largest shareholder of Racer, with a 21% stake. And Tencent’s application, WeChat, currently has more than 1.2 billion active users worldwide. Dissidents, consumer and security researchers say Beijing authorities are increasingly using Tencent’s App to collect information as evidence in arrests and warnings.
The Wall Street Journal has previously reported that WeChat has become one of the most powerful channels for Beijing authorities to monitor the public, censor speech and punish dissidents. In particular, during the Epidemic, Beijing authorities often blocked WeChat accounts for discussing topics such as the epidemic and human rights, in addition to deleting sensitive content, and the police would then follow up by interviewing users who had their accounts blocked. WeChat has been criticized for exposing users’ privacy and having questionable security features.
It is also worth noting that one of Racer’s shareholders, Boyu Capital, is linked to Jiang Zhicheng, Jiang Zemin’s eldest grandson. According to Hong Kong media reports, Jiang joined the Wall Street financial institution Goldman Sachs after graduating from Harvard in 2009, and later set up his own private equity fund, Boyu Capital, in Hong Kong with Ma Xuezheng, Zhang Zixin, and former Providence private equity partner Tong Ziqiao.
Boyu Capital manages nearly $10 billion in private equity funds, making it one of the largest private equity funds in China. In 2014, Reuters published a lengthy article revealing how Jiang Zhicheng made huge profits in China, the world’s largest emerging private equity market, and used his privileges to manipulate profitable areas.
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