Millet released the first earnings report: Q2 revenue rose 68%, Western Europe shipments surged 2700%!
Lei Jun can finally breathe a sigh of relief.
ID: pedaily 2012 reported on August 22 that Millet Group posted second-quarter revenue of 45.235 billion yuan, up 68.3% year-on-year, and net profit of 2.116 billion yuan under non-US accounting standards rose 25.1% year-on-year. Overall, the profit and revenue of millet surpassed the expectations of Wall Street predators.
Before listing, the controversy over the valuation of millet has become a hot topic in venture capital circle. After the release of the financial report, major brokerage firms have updated their research reports, JPMorgan Chase, Goldman Sachs and other eight institutions continue to maintain a target price of HK $20 or above, of which Southwest Securities maintained a maximum target price of HK $30.3.
Interpretation of the first earnings report after listing:
Q2 revenue of 45 billion 200 million yuan, up 68% over the same period last year
Millet delivered the first earnings report after listing, it can be intuitively displayed its good performance.
According to the financial report, millet earned 45.2 billion yuan in Q2, up 68.3% year-on-year, and adjusted profit figures were equally encouraging, reaching 2.1 billion yuan, up 25.1% year-on-year. The millet income in the first half of 2008 was 79.6 billion yuan, up 75.4% from the same period of the year before, and the adjusted profit was 3.8 billion yuan, up 62.2% from the same period of the year.
From the business sector, millet income sources are mainly divided into smart phones, loT and consumer products, Internet services and other.
On the smartphone side, millet’s mobile phone revenue rose nearly 50% to 30.5 billion yuan, thanks to the release of its flagship handset, millet 8, and millet MIX 2S in Q2 quarter. The total sales volume of mobile phones exceeded 32 million, an increase of 43.9% over the same period. According to the third-party data agency IDC, millet is the fastest growing company among the top five mobile phone companies in the world.
LoT and consumer products were the most prominent business segment in the millet report. Revenue doubled in Q2, 2008, to 104.3% year-on-year growth, reaching 10.4 billion yuan. The revenue accounts for 22.9% of its total revenue, up 4 percentage points from the same period last year. Millet has a wide range of loT equipment, the biggest contribution to its income is the higher unit price of millet TV, millet notebook and other large-scale electronic equipment.
Millet emphasized in the financial report that its global sales of smart TV grew by more than 350% year-on-year, has become the largest TV brand in mainland China, and has successfully entered the Indian market. Millet believes that with the launch of its loT products worldwide, it will introduce more traffic to millet’s overseas sales channels, further improving the efficiency of its overseas operations.
Millet pointed out in the financial report that by the end of June 2018, millet had 115 million connected loT devices (excluding smartphones and laptops), with nearly 1.7 million users owning more than five millet loT devices (excluding smartphones and laptops), up 19% from the previous year.
Overseas income accounted for 36.3%, Western Europe shipments increased by 2700% over the same period last year.
Nowadays, the Chinese mobile phone manufacturers “go to sea” is magnificent.
According to the financial report, millet overseas market revenue has accounted for 36.3% of the total revenue, reaching 16.4 billion yuan in the second quarter of 2008, an increase of 151.7% over the same period last year. By contrast, the overseas market sales of millet in 2015, 2016, 2017 and the first quarter of 2008 were 4.056 billion yuan, 9.154 billion yuan, 32.081 billion yuan and 12.47 billion yuan, accounting for 6.07%, 13.38%, 27.99% and 36.24% of the company’s total revenue, respectively.
Millet has been promoting the internationalization strategy since 2014. It has been successfully distributed in India, Southeast Asia, Eastern Europe and other emerging markets, especially in India. In 2017, millet mobile phone has become the smartphone brand with the highest share of smartphone shipments in the Indian market.
As of June 31, 2018, millet ranked among the top five markets in 25 countries and regions in the world, according to financial data. According to Canalys data, millet smartphones have maintained rapid growth in the Indian market, with fourth consecutive quarters in the second quarter of 2018 leading the market share. After entering the Spanish market in November 2017, millet expanded to France and Italy in May 2018. As of the second quarter of 2018, shipments of millet mobile phones in Western Europe increased by more than 2700% year-on-year. In addition, millet mobile phone shipments in Indonesia ranked second.
It is worth mentioning that the millet listing prospectus mentioned that 30% of the funds raised will be used for international expansion. And millet on July 9 listed, millet can be foreseen after the pace of international expansion, will be more rapid than the first half of the year.
8 brokerages give HK $20 and above target price.
How to look at the valuation of millet has always been a controversial topic in the industry.
After the announcement of the financial report, the major brokerage firms have updated their research reports. JPMorgan Chase, Goldman Sachs and other eight institutions have continued to maintain a target price of HK $20 or above, of which Southwest Securities maintained a maximum target price of HK $30.3, confidence is obvious.
Among them, Southwest Securities Electronics Chief Analyst Fairfastmillet, he directly millet against the Internet giant Amazon, gave a target price of 30.3 Hong Kong dollars.
Deutsche Bank reported encouraging increases in hardware shipments and average selling prices, better TV sales than expected, confirming the bank’s view that the millet group has become a growing brand of household appliances, and that the increase in average mobile phone prices shows that the brand effect has expanded to a broader consumer level, as well as pressure on exchange rates and spare parts costs. The gross profit margin is affected, but it is believed that the expansion of the company’s sales and market share is more important for the medium-term outlook. The bank adjusted its target price from 23.2 yuan to 22.5 yuan, reiterated the “buy” rating.
Goldman Sachs reported that millet performed better than expected in the second quarter, with overall revenue 19% higher than the bank’s and market forecasts, and non-IFRS earnings 4% higher than the bank’s forecast. The bank rated “buy” for millet and the target price was 22 yuan.
Then, is it satisfactory for the first transcript after the listing? Later, millet CFO week was admitted to the media, “performance in line with internal expectations, exceeding market expectations”. A short sentence left the market with endless reverie.
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