I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 563: 431-432: This is the price-earnings ratio! (4000 words)
Hillhouse Vehicles is listed!

When Wang Xiaodong heard what Gao Huaijun said, he couldn't help but be shocked!
At first, he thought Gao Huaijun came to the capital to meet him to discuss Hillhouse Technology's bond issuance.

Hillhouse Technology's bond issuance has not been smooth recently, and many financial institutions are hesitant.

He thought that Gao Huaijun hoped that China Construction Bank could play a leading role and use its background as an endorsement to enable Hillhouse to overcome difficulties more quickly.

However, what he didn't expect was that Gao Huaijun was still thinking about the listing of Hillhouse Vehicles at this point in time!
You know, Hillhouse’s core problem now is not its technological reserves, but consumer confidence.

In a sense, even a bystander does not think that now is a good time for Hillhouse Capital to go public.

Because, if you don't solve the confidence problem, the stock will fall below the issue price when it goes public, and it will really break through again and again, which will trigger the short-selling mechanism of institutions.

At that time, not only Hillhouse Capital will be discredited, but China Construction Bank, as the main leader, will also bear the main responsibility.

As if noticing Wang Xiaodong's strange expression, Gao Huaijun smiled and continued, "The Mate series of mobile phones newly developed by Gaoling Technology is not just a slightly modified mobile phone like the Mate 13, but also a new generation of mobile phones that subverts the cognition of the times."

“Hillhouse actually does not lack technology.”

“Every success we have will bring about the latest changes in technology.”

At the end of his speech, Gao Huaijun curled his lips, as if he was somewhat disdainful of Pingguo Company, a "pseudo-tech company" that could not innovate and could only rely on its old capital.

When Wang Xiaodong heard Gao Huaijun say this, he was a little shocked.

His shock was not caused by Gao Huaijun's words, "Every success of ours will bring about the latest changes in technology."

More importantly, Hillhouse was able to, despite the chip shortage, carry out major iterations on the Mate series, a product that has been in development for more than ten years and has undergone repeated modifications to various small details!

Pingguo and Sansang, the two foreign kings, have already laid low. Now Hillhouse can continue to keep up with the pace of technological development and further improve this product, which outsiders think has little room for change.

This is really scary enough!
No wonder Gao Huaijun dared to put the listing of Hillhouse Vehicles on the agenda.

You should know that the listing of Hillhouse Vehicles has been on the agenda for two years, but it has always been in the screening stage of the main leading securities firms.

Now mainstream domestic and foreign securities firms have already made their own quotations, but Hillhouse has not proceeded.

"So, Mr. Gao, do you mean to launch the IPO of Hillhouse Vehicle after Hillhouse Technology's Mate series products go on the market?" Wang Xiaodong asked tentatively.

"No! My idea is to start the pre-IPO brokerage coaching phase now. After the Mate 20 goes on the market, I want to go to Shanghai to ring the bell."

"After all, as a Chinese company, we still need to wait in line for some time!"

Gao Huaijun said with a smile.

Wang Xiaodong rolled his eyes silently in his heart.

I thought to myself, just forget it!

Who doesn’t know what the two words “Gaoling” represent?
Other listed companies, those with a market value of only tens of billions, and some of which even need to revise their financial statements, naturally need to queue up, and some have to wait for more than a year.

However, Hillhouse Capital's vehicle company needs to queue up for listing, but that is during the countdown of the green window, allowing major institutions to adjust their portfolios and stocks and prepare funds to welcome this giant.

If there is no preparation for this kind of portfolio and stock adjustment, and this giant company suddenly withdraws money, the liquidity of A-shares will be directly drained.

After all, this is a natural seed player for the SSE A50!

Even natural underlying funds such as social security funds will be purchased in large quantities as a base warehouse to enjoy the dividends brought by Hillhouse's growth.

"It is a big deal that Hillhouse Capital is preparing to launch the A-share listing. I need to communicate with the higher-ups about this matter."

“But I don’t think it’s a big problem.”

"Hillhouse's Mate series is usually released around the Spring Festival. However, if Hillhouse vehicles are to be listed before the Spring Festival, there will be certain problems, as the market is not very good at that time." Wang Xiaodong said somewhat vaguely.

During the period from December to the fifteenth day of the first lunar month, the A-share market is most likely not doing well.

Retail investors and hot money do not have much of a problem, but institutions will basically summarize their annual performance.

Those who deserve performance rewards should be rewarded, and those who deserve bonuses should be rewarded.

To consolidate your performance, you naturally need to hold empty positions.

Under such a premise, the stock market has no core motivation to go long and the money-making effect is also poor.

If Hillhouse Capital's vehicles were to go public at this point in time and drain liquidity, wouldn't that make the already bad market even worse?

This is convenient for the country, which is convenient for oneself.
Wang Xiaodong was afraid that Gao Huaijun didn't play stocks and didn't understand this, so he reminded him tactfully.

"I understand. Originally, I hoped for the listing time to be in early March 2020. This time point is more than enough for you," Gao Huaijun said calmly.

Wang Xiaodong nodded happily.

"Okay, the listing time has been roughly finalized. Now let's talk about the listing stock price!"

"As a leader in new energy vehicles and an innovator in driverless cars, I don't want my stocks to be sold at a low price!"

Gao Huaijun raised another core question.

Due to the liquidity of H shares, the market value is undervalued.

So generally speaking, companies listed on the H-share market are much more undervalued than companies listed on the A-share market.

Basically, the stock price of stocks with the same value will drop by 30%-60%. The more junk the stock is, the greater the discount.

For example, Hillhouse Capital's current real-time price-to-earnings ratio when listed on the H-share market is around 26 times. If it were listed on the A-share market, its price-to-earnings ratio would certainly be far more than this number.

Some time ago, China Construction Bank offered a plan, but Gao Huaijun was not satisfied with it.

"Is Mr. Gao dissatisfied with the 30 times P/E ratio proposal I gave you last time?"

"You should know that most A-share listed companies, especially those with Chinese characters in their names, generally have a price-to-earnings ratio of only 20 times. Some companies with insufficient growth potential and negative net assets may even have a price-to-earnings ratio of less than 20 times."

“Companies with price-to-earnings ratios of hundreds of times are not good investment targets.”

"Generally, after the stock price is pushed up by the market makers, the stock price will drop precipitously."

"In fact, the stock price is even lower than the original price."

"What we see is nothing but the chaos after the madness."

Wang Xiaodong couldn't help but speak out when he heard Gao Huaijun say this. Indeed, he was more familiar with the field of investment than Gao Huaijun.

For A-share investors, the rules of the game will be more familiar.

Although A shares have the advantage of a higher premium than H shares, they are more speculative in nature.

Completely different from mature investment markets such as H shares and US stocks, the situation here is closer to...

Of course, its sufficient liquidity is not comparable to that of H shares, and the restrictions on the short-selling mechanism also make the premium rate here higher.

"I know what you said, and I understand it."

"But since I chose to return to the Shanghai Stock Exchange, and not to list on the Science and Technology Innovation Board but on the Main Board, this also shows that I have a clear positioning for Hillhouse Automotive."

"I believe you also know that this company is very valuable!"

Gao Huaijun curled his lips and shook his head.

Hillhouse Vehicles now has extremely high growth potential.

Its sales volume basically increases by 10%-30% every year.

This is actually very scary.

This means that the stock price of this large company can continue to grow as fast as Hillhouse Technologies in the next few years at least.

Moreover, Chinese institutions have a characteristic, which is that they particularly like to chase rising and sell falling, without any pattern at all.

There is no such thing as helping someone when the time is right, but adding icing on the cake is something we often do.

Gao Huaijun knew clearly that the company, which was later called Han Wuji, had sales of more than 10 million yuan and an annual loss of more than 300 billion yuan. Just relying on the concept of an artificial intelligence chip, its stock price was pushed up to more than yuan per share.

What a good guy!

Gao Huaijun does not think that he has the concept of new energy vehicles, the concept of driverless cars, and Hillhouse Vehicles, which is now China's first domestic automobile production capacity.

Among all listed companies in China, it is definitely one of the top ones.

You said he fell below the IPO price after going public?

This is impossible!
Absolutely impossible!
"I know that Hillhouse Vehicle is very valuable, but we should not raise our expectations too high, otherwise it will be difficult for me to do underwriting. After all, Hillhouse is in the stage of self-destruction now, and there is actually a lack of confidence in the market. Thirty times the price-earnings ratio is really not a small amount. Calculated according to this price-earnings ratio, the annual interest rate is 3.33%." Wang Xiaodong said with a wry smile.

Gao Huaijun sneered, and then said, "Liaoning, what ordinary companies can be compared to it?"

In his opinion.

In terms of product strength, leading foreign-funded automobile companies, led by Porsche and BBA, have fallen behind significantly.

Whether it is the car system, intelligent functions or configuration experience, domestic major manufacturers such as Hillhouse have achieved comprehensive surpassing.

The driving feel of products such as Porsche and BBA has not been significantly improved, and the luxury and attention to detail of the interior are still inferior to Mercedes-Benz, and there is no advantage at all compared with domestic high-end new energy vehicles.

More importantly, companies such as Porsche, especially German cars that occupy the leading position in the high-end car market, have insufficient space optimization, which has become a major flaw in their main models.

High-volume models like the Macan and Cayenne produced by Porsche have been replaced slowly over the years, and the company seems to be extremely careless in improving its product strength.

Especially the relatively compact space design problem, which has opened up a clear gap with the same-level models such as Hillhouse Tang and Hillhouse Wenjie.

Even though the Cayenne is positioned as a luxury SUV, it fails to bring real competitiveness in terms of space and comfort.

What is more serious is that the fuel vehicles of some car series such as Macan have been discontinued, and the fuel vehicles of Cayenne are no longer planned to be replaced, but are slowly entering the discontinuation stage.

This makes people wonder whether Porsche's new energy layout can really take over its market share while giving up its core competitiveness?
Judging from the current performance of Taycan, Porsche has not provided new energy products that will impress consumers.

These models are completely unable to match the domestic new energy vehicles in terms of performance, intelligent experience and cost-effectiveness. In particular, the luxury models represented by Hillhouse Wenjie are forming an all-round impact on the current Porsche structure.

A car that can actually free human hands and allow you to do other interesting things during a boring journey can be said to have refreshed the market's perception.

It no longer subverts the definition of "luxury performance car" with its cost-effectiveness, but also changes consumers' choice logic from the technical and experience levels.

With its powerful intelligent ecosystem and technical configuration, Hillhouse Wenjie directly competes with Taycan and Mercedes-Benz G-Class, but is more attractive in price.

In the future, if Hillhouse launches an unmanned intelligent car that can compete with B-class cars, and it is a Hillhouse-level intelligent system, then the impact will be even more obvious.

If Porsche and other automobile companies continue to focus on new energy vehicles, they will be using their own weaknesses to attack others' strengths.

How can Hillhouse's artificial intelligence barriers be compared with those of these automobile companies that do not have intelligent genes?

After listening to Gao Huaijun's analysis, Wang Xiaodong was initially disapproving. After all, consumers of his age generally have a very high degree of identification with foreign luxury cars, and compradors are easily produced in the financial sector, and the investment banking sector is an area where compradors are concentrated.

If you want him to truly believe that Hillhouse is more powerful, it actually requires a cognitive process.

However, when he heard what Gao Huaijun said, the indifference on his face slowly turned into silence, and then from silence to solemnity.

Indeed, Hillhouse’s current series of developments is actually just such a process from nothing to something, and he cannot help but pay attention to it!

It is hard to imagine that a company like this has no premium and no room for imagination.

Putting aside other things, what will happen if we take over some of the market share from BBA and Porsche?
What if the market share of the other three Japanese giants is also taken away, leading to a major reshuffle of the global automotive industry?

What will this become of Hillhouse Vehicles?

No one dares to make a random estimate!

Because this is definitely aiming for the status of a global automobile company.

The automotive industry is the most complex and longest industrial chain in the world.

Relying on the automobile industry, two world-class developed countries, Germany and Japan, are supported, not to mention other related countries such as Italy and Korea. It can be said that all the most developed Western countries in the world have benefited from the growth and maturity of the automobile industry.

The reputation of the king of industry is no exaggeration.

This thing brings something tangible to the country, which is much better than some empty concepts.

"I don't ask for much. With a market underwriting of 35 times the P/E ratio, this order is yours. If you think it's not feasible, I will look for other securities firms!" Gao Huaijun said at the end with the final word.

(End of this chapter)