Ali Roadshow Hot Start "Chinese Aunt" Difficult To Enjoy The Investment Feast

The roadshow of Alibaba IPO officially opened in New York. More than 800 institutional investors poured into the Waldorf hotel in Manhattan. They had close communication with Chairman of Alibaba Group Chairman Ma Yun and executive vice chairman of the board of directors Cai Chongxin.

According to foreign media reports, the grand occasion caught up with the Facebook roadshow two years ago. Ma Yun made a short speech at the roadshow, recalling the 15 years ago that he had gone to the United States to raise $2 million. "I need more money to come to New York this time." He also made an active reference to the 2010 Alipay incident and said that the decision was difficult, but time could prove that the decision was correct.

A hedge fund insider told reporters that the agencies involved in the roadshow were relatively enthusiastic, and the scene subscription should have reached the Alibaba's expectations. "The roadshow itself is quite conventional, and there is not much new content. But we still have a further understanding of its future long-term business plan and strategy, which has not changed much before. Compared with institutions, US retail investors are more emotional. "There are too many people to attend, and many of the retail investors who are not in the market ask whether they can sell or sell stocks outside the venue.

Analysts with investment bank said that they are more optimistic about the prospects of Alibaba and the development of China's electricity supplier industry, rather than just looking at short-term financial performance. However, "Chinese aunt" is not directly involved in this investment feast.

Still focus on China business /

These hot scenes are just the beginning of this feast. In the next ten days, Alibaba roadshow will also be launched around the world, including Boston, Denver, Losangeles, San Francisco and other cities. After that, Alibaba will also travel to Singapore, London and Hongkong.

According to the reporter, other executives of Alibaba also answered questions raised by investors at the meeting. In response to questions about international business expansion, Alibaba said that the company is still focused on Chinese business, and that China's network users account for only half of the total population, and only half of the users are online shopping. This strategy is basically consistent with the current strategy of most China Internet Corporation.

The latest report shows that Alibaba's revenue is mainly composed of China's retail business, international retail business, B2B (business activities of business to business), Ali cloud and Internet basic information business, and other business income.

Among them, China's retail business mainly includes three parts: Taobao, Tmall and Juhuasuan. They are respectively the C2C (personal and personal business activities), B2C (business to consumer business activities) and group buying three operation platforms, the main source of revenue for Alibaba, the three consecutive fiscal year, and the 2014 fiscal year revenue is 42 billion 800 million yuan, accounting for 81.6% of total revenue.

Unlike the business models of Jingdong, Dangdang, Amazon, eBay and other electric business enterprises, Alibaba's retail revenue in China is mainly derived from advertising revenue, except for a small part from Tmall trading commissions, shops and value-added services. Its advertising revenue reached 29 billion 700 million yuan in fiscal year 2014, accounting for 69.4% of China's local retail revenue, accounting for 56.6% of total revenue.

Almost all the Alibaba platform has been accumulated. Small and micro enterprises Many third party service industries have become a link in the ecological chain. Alibaba stakeholders told reporters that 62 000 websites offer advertising display services to sellers through the advertising marketing alliance organized by Alibaba. These websites charge according to the value of merchandise sold or the amount of advertising hits. "Last year, the amount of direct advertising brought by these advertisements exceeded 60 billion yuan, and the proportion of small and medium-sized websites reached 4 billion 700 million yuan."

Pleven Menon, a senior research analyst at Bloomberg, believes that Alibaba is actually a real advertising company whose operating profit margin is much higher than that of eBay and Amazon. PraveenMenon "It was originally a very difficult business model, but it occupied a dominant position in China."

Analysys International analyst Tang Jia said in an interview with reporters that, from the point of profit itself, the Alibaba is more accurately defined as a Internet Co based on the accumulation of large user and traffic base on e-commerce services, and advertising marketing as a means of liquidation.

although Alibaba It will still be able to land on the NYSE after several roadshows, but the final pricing and future growth of its stock have long been discussed in the industry.

Foregoing hedge fund Frankly speaking, if there is a price below US $70 / share, there will be room for improvement. "If we break 100 dollars in the open market, we still need to wait and see. The more intense the market is, the more we need to be calm."

A number of people interviewed by reporters expect that the first day of opening of Alibaba is likely to be higher than the current IPO pricing, that is, the 60~68 US dollar / share range.

However, for retail investors like "Chinese mothers", they can not directly participate in the incident. At present, for investors holding stock accounts, foreign underwriting institutions generally require assets of up to $1 million to participate in the subscription of new shares. Domestic investment securities and GF Hongkong brokerage firms have slightly lower threshold for starting capital, but less likely to get hot stock options.

Yang Hai, senior strategist of open source securities, believes that the domestic capital market is not completely open to the US market, which is indeed a great pity for Chinese investors. "However, the international capital market will gradually become more integrated and open in the future, and there will be no more obstacles for domestic investors."