Why is millet worth 4 billion dollars?

Absrtact: 4 billion USD, this valuation makes millet become the fifth largest internet company after Tencent, Baidu, Alibaba, NetEase. Lei, chairman and CEO of Millet Technology, said investors ' valuation of millet depended not on the traditional P/E ratio,

4 billion dollars, this valuation makes millet become the domestic after Tencent, Baidu, Alibaba, NetEase after the fifth largest internet company. Millet Technology Chairman and CEO Lei (micro-BO) said that investors to the value of millet is not dependent on the traditional price-earnings ratio, but "the City dream rate", the bet is that millet can do tens of billions of dollars company.

Venture so far only two years of millet, in pursuit and questioned the sound was valued to 4 billion of dollars, is millet really value this price, or internet companies in the growth of the usual trick?

Why is it worth 4 billion dollars?

"Investors fancy Millet, one is the business model of millet, the second is Millet future IPO." The business model of Millet is different from that of the traditional handset makers, but also different from other Internet companies doing mobile phones, but copying Apple. "Analysys International analyst Wang June 28 to" Huaxia times "reporter analysis Millet valuation reached 4 billion U.S. dollars.

June 26, Lei to "Huaxia times" and other media reporters said that millet in the Dragon Boat Festival completed a new round of financing, financing amount of 216 million U.S. dollars, the financing of millet Company's overall valuation reached 4 billion U.S. dollars.

Single look at the valuation, the current millet technology has become a domestic successor Tencent, Baidu, Alibaba, NetEase after the fifth largest internet company. At present, the top four valuations in turn are about 52 billion U.S. dollars, 38.8 billion U.S. dollars, 35 billion U.S. dollars, 7.4 billion dollars.

For Lei led Millet, this is undoubtedly a leap, but also become the Chinese Internet companies to start another myth.

April 2010, Lei United Google (micro-blog), Microsoft, Jinshan and other company executives set up millet technology, currently to rice chat, MIUI, millet mobile phone as the company's three core products. Today, the millet mobile phone in the market attracted a lot of eyeballs, Lei announced 216 million new financing, said the money will be used to improve mobile phone hardware production of the capital chain.

Previously, millet science and technology had twice financing. The first was at the end of 2010, when $41 million was raised and the investor was IDG, Morningside and Qiming, and the company's overall valuation was 250 million dollars. The second was at the end of 2011, when the company's overall valuation rose to $1 billion trillion, and the investors, in addition to the 3 first-time financing, also appeared as Shun fund, Temasek and Qualcomm.

For the financing of the investment side, Lei said it is inconvenient to disclose. But the market said it might have been led by Russia's DST group, the world's leading risk company investing in Facebook.

But for the 4 billion-dollar valuation of millet, there is a market point of view, because compared with Tencent, Baidu, Alibaba and other current in the domestic internet influential giants, millet current business is apparently still far away, and even compared with other companies operating Internet business, millet is difficult to calculate giants, such as Sina, Sohu, Grand, Youku and so on.

"The core of the pricing is what investors expect." Lei said that the investors on the valuation of Millet is not based on the traditional price-earnings ratio, but "the City dream rate", the bet is millet can do tens of billions of companies. He also said, "Millet 5 years without a listing plan, willing to gamble on the come in." ”

But for the lei "City Dream rate", 360 company chairman Zhou (Weibo) questioned. He said that the first to second round of financing can rely on stories about the dream to get tens of millions of dollars in financing, but the third round (C round) financing, without real gold and silver profit support, investors will never invest billions of dollars.

Millet Company's data show that the millet mobile phone sales in May this year exceeded 700,000 units, since the end of last year sales, Millet handset total sales have exceeded 3 million units. Another source said that the Millet mobile phone plan to complete sales of 5 million units this year.

Forbes Chinese columnist Yin Seng June 29 in an interview with the Huaxia Times, said the valuation of 4 billion U.S. dollars, which depends on the investor assessment of what kind of reference, whether using mobile phone companies, or mobile internet companies to evaluate. If the 4 billion dollar valuation by mobile phone companies and mobile internet companies is clearly ridiculously high. If the future of millet to e-commerce, like the Lei have a relationship with the original Jinshan excellence, then the reference to the standard will become Jingdong Mall, is expected this year, according to the sales of millet close to the east half of Beijing, according to the current valuation of 8 billion-10 billion U.S. dollars, half 4 billion-5 billion U.S. dollars, But the electric dealer and own brand sale is not the same thing, needs more resources, the operation is more difficult, therefore doubles also cannot be too. But does not rule out the future LEI will millet and its other electrical business resources integration. If this route arrangement is in advance, and investors hold the determination to hold for 3-5 years, there is a chance to make money.

Cheng Tianyu, an internet renowned observer, said in an interview with the Huaxia Times June 29 that investors had voted to endorse the 4 billion dollar valuation. Personally, I don't think it's worth it, but I'm not an investor. There are two reasons: one is the so-called millet operating system, but is to change the skin, does not go too far, depends entirely on the improvement of the primary system speed. Second, China is the base of mobile phone foundry, there is little innovation. And the replacement is very fast. So most of China's users have little loyalty to the handset brand. The so-called occupation of mobile Internet portal is just a vision, or dream, difficult to achieve.

"Growth" in a quarrel

"The general grains of Thunder recently financing, is a good thing, Ray on the one hand very excited, very high-profile, on the other hand, but cover." The third round of financing, but also said that investors in accordance with the ' City dream rate ' investment. "Zhou in its microblog," said plainly, or afraid of being uncovered millet mobile phone profiteering facts. ”

Zhou that the investment of millet based on the Millet cell phone high gross margin of the valuation. And on June 10, he has revealed the success of millet financing in his microblog news, "Millet really priced 4 billion of dollars in financing success, whether you believe it or not." Its financing documents revealed that this year sold 3 million to 5 million mobile phones, each profit of seven hundred or eight hundred yuan, the total profit in 2.5 billion yuan, according to the internet companies according to the hardware company 10 times times PE company value 25 billion yuan in 4 billion U.S. dollars. The only challenge is how to keep the fat profits and sales of each cell phone. Its model is worth thinking seriously of each handset enterprise. ”

Zhou's microblog has sparked concern about the profiteering of millet handsets.

However, lei the next day in Weibo, said, "to give someone a popular science: the first quarter of this year, Apple and Samsung earned 99% of the mobile phone industry profits, all other companies, including HTC, NOKIA, Moto and other high-rich handsome also only 1%." Mobile phone industry competition is fierce, want to make money is not an easy thing! Do not shamelessly fabricate ' financing documents ' or insider financing to discredit the millet. ”

For "Millet mobile phone profiteering," said Lei June 26 to our correspondent, including a number of media listed Millet mobile phone cost list and said that Zhou will be "parts purchase cost" and "machine cost" confused, the concept of the cost of parts purchase accounted for only part of the total cost.

He also said that 300,000 is only a turning point in the millet mobile phone, because the millet mobile phone in the pricing, is based on 300,000 units of the highest sales to calculate the cost. But the millet handset has already reached 300,000 for the first time to accept the reservation. "The company actually lost a lot of money last year and began to balance its earnings this April or May." After 300,000, millet mobile phone began to realize about 10% of ' meager profit '. ”

It is reported that according to the Millet mobile phone standard version of the price of 1999 yuan, each millet cell phone current profit is about 200 yuan.

Lei at the same time Counterattack Zhou, in the case of fierce price competition, the use of Qualcomm 8260 dual-core chip mobile phone has not been less than 2000 yuan, which from the opposite side of the proof of "millet profiteering" is not established.

For Zhou 祎 nearly 1 months to stare at the reason of the Millet cell phone, lei to "Huaxia times" reporter said, he also confused. However, he said in the June 27 microblog, "Zhou Boss, I know why you have been scolding me to scold millet, is not jealous?" It is human nature, I can understand. ”

Millet Technology co-founder, vice President Li Vanchang (Micro bo) June 26 to the "Huaxia Times" reporter analysis, may be because Jinshan network launched Cheetah Browser.

For this statement, Analysys International analyst Wang that it is possible. However, she also believes that the current 360 and millet technology in the mobile phone industry is also a competitor.

The latest news shows that June 28 360 special AK47 began to sell online at 1699 Yuan.

For the current Zhou and lei of the fighting, it is very easy to associate with the 2010 3Q war. There is a market view that this may be the marketing hype. Recalling the 3Q War, 360 companies successfully landed on the New York Stock Exchange in 4 months, March 30, 2011, and Tencent (hk:00700) 's share price was nyse:qihu after the 3Q war, And the year after the war, April 27, 2011, a record high of HK $230.8.

Obviously this is a happy "win" situation, now Zhou and lei, both sides of the mobile phone terminals and the company's brand more attention, so consciously or unconsciously, and will become a new "a Feast of joy."