Reborn multinational giant

"50-10 billion?" Fang Zhe leaned back slightly on the sofa after hearing this valuation range.

Yes, that’s not to talk about. It seems that Huizhong’s current strength is still not well understood by people in the investment circle. But this is also my fault. WeChat, the core weapon of the aircraft carrier, is still a secret. The outside world does not know that Huizhong has one. This is a mobile chat software that is quietly taking root around the world, so it’s no surprise that Huizhong is regarded as a game company.

In the capital market, there are several important points in judging the valuation of a company. One is the company’s profitability, and the other is the nature of the company’s core business. The former determines the basic valuation of the company, and the latter determines the valuation. The value of the price-earnings ratio is the imagination.

Today’s common industry standards, pure Internet companies such as bat have P/E ratios ranging from 20-50, hardware companies such as Apple are at 10-20, and game companies such as NetEase Perfect have P/E ratios ranging from 5-15. Among them, the P/E ratio of game companies is the worst. This also has a lot to do with the instability of the income of game companies and the failure to guarantee revenue due to droughts and floods.

Now according to the valuation given by Liang Botao, it is obvious that Huizhong is regarded as a game company. Otherwise, Huizhong's valuation should start at 10 billion US dollars, rather than capped at 10 billion US dollars.

"Mr. Liang, I am coming to Hong Kong this time. One is to talk to you about the transfer of JD’s shares, and the other is to get to know and meet with friends in the Hong Kong investment circle. These two days, I still have trouble with Mr. Liang. You can help contact and make arrangements!"

Fang Zhe changed the subject and stopped mentioning Huizhong’s valuation. Liang Botao and Li Zhonghua looked at each other and knew that the other party was not satisfied with the valuation they offered. Therefore, they stopped entangled in the matter. Liang Botao promised to help. At the time, Fang Zhe got up and said goodbye to him:

"It's not too early today. I just came to Hong Kong, so I will go back to the hotel for a change of Feng Shui. You two will also take a rest early. When I have time, I will harass Mr. Liang again!"

Liang Botao and Fang Zhe and his party sent away, and returned to the living room. Liang Botao asked, "What do you think of Jacky?"

"I guess he still thinks the valuation is low, but the price we gave is already very kind. Now the P/E ratio of game companies in the market is generally not high, and the P/E ratio of China NetEase is only 12 times.

For a company like NetDragon that is solely supported by games, the stock has fallen from 17 yuan last year to more than 2 yuan now, and the price-earnings ratio is less than 5. We can give Huizhong a 15-fold price-earnings ratio. We are already very optimistic about their company The future!"Jacky is Li Zhonghua's English name. After Fang Zhe left, the two regained the habit of using English names in the past.

Liang Botao nodded and said: "Indeed, this is generally the case in the market now. The young CEO of Huizhong is either too smooth sailing and has no pains and arrogance, or he has any secret cards that we don’t know. Otherwise, is it possible that the company he founded a year ago wants to catch up with the long-established Internet companies like Bat?"

Fang Zhe couldn't hear the discussion between Liang Botao and Li Zhonghua. Fang Zhe, who was resting in the car returning to the hotel, was also thinking with his eyes closed.

According to the valuation given by Liang Botao, it is equivalent to treating Huizhong as a game company with a game business as its main business and an Internet business as its supplement.

However, it is clear that Huizhong does not currently have a nuclear weapon product with great potential like Tencent QQ, nor is it positioned as an Internet company like Tencent but not a game company. Although Huizhong’s many non-game businesses are considered excellent, they are still It is difficult for the investment circle to give a P/E ratio of more than 30 times like Tencent.

However, this situation will not last too long. With the introduction of the iPhone into China, Huizhong has entered the country in an all-round way. It is not only the game business of Huizhong, but also WeChat, which has accumulated more than 50 overseas. Killer product with 10,000 users.

After more than 5 months of polishing, WeChat has completely accumulated a lot of loyal fans around the world. It is the largest overseas competitor, Whatsapp, and the person in charge of Zhongying Overseas Capital has also contacted, and it only cost less than 50 Ten thousand dollars, the founder of Whatsapp, Kom, sold this software.

Even Fang Zhe didn’t expect that a product with over one billion users in the global international market in his previous life would be so fragile in its early stages of development. This reminded Fang Zhe that if Tencent’s President Ma won the bid, QQ would be I don’t know what the situation of China’s Internet industry is now!

Although whatsapp was bought, Fang Zhe didn’t plan to throw this product in the trash. Just like the previous acquisition of "Minecraft", Fang Zhe is just the overseas head of Zhongying Capital and registered a company in Silicon Valley. The company, with a small amount of shares and options, left Kom as the CEO of the company, the routine is still the same, and the one who should be recruited, like the founder of "Minecraft", was also recruited!

Fang Zhe retained the independent operation rights of WhatsApp for two considerations, one is horse racing, to reserve a competitor for WeChat to make it grow faster, and the other is to deal with future antitrust and pressure from conservative forces in various countries. When necessary, whatsapp will be sacrificed as chess pieces and cakes.

However, in order to realize Fang Zhe’s dream of eating the earth with WeChat, whatsapp and WeChat have taken a completely different path in terms of product thinking. Whatsapp, like the previous life, is minimalist and does not engage in any platform and ecology, while WeChat , Is the same as Tencent’s WeChat in the past, taking the route of slowly evolving from tool products to platforms to ecology.

In contrast, the resistance and difficulties that the latter will face in the future are hundreds of times more than those of the former. However, how can one know whether it will succeed without trying?Anyway, my brother is so rich, it's no big deal to fail!

Fang Zhe made up his mind. After returning to the mainland this time, he will make every effort to prepare all Huizhong’s businesses to enter the country, especially WeChat. Compared with Mao’s WhatsApp, the domestic social giant Tencent is the existence he is most afraid of. Fortunately, Fang Zhe has already had multiple layouts before, plus some of his future layout plans, involving Tencent's energy to mislead Tencent's judgment, should still be quite certain.

In the next few days, Fang Zhe and several heads of Huizhong Investment Department who accompanied him met with friends from many well-known investment institutions and private equity funds in Hong Kong.

At the same time, the Huizhong Investment Department also settled the transfer of JD’s shares with Liang Botao. Since Liang Botao and the others wanted to buy a stake in Huizhong had not been negotiated, the price was still at that price. Huizhong paid 20 million US dollars. Price, from Liang Botao's party to get a 9% stake in Jingdong.