Decoding "Science And Technology Board First High Priced Stocks" Stone Technology "Crazy" Secret

"Congratulations on the stone technology (stock code 688169) of mica's sweeping robot manufacturing company. This is the first ecological chain enterprise listed on the Chuang Chuang board. Stone technology is also the third listed company of millet ecological chain after Hua MI and Yun MI.

In February 21st, Lei Jun sent the above congratulatory speech on the day of the listing of stone science and technology that attracted much attention because of the "millet ecological chain enterprise".

With the successful listing of stone technology, there are two more noticeable tags on it, which are related to stock prices. The issue price of stone technology is 271.12 yuan / share, setting the highest issue price of A shares; in February 21st, the first day of listing rose by 84.46%, and it closed at 500.10 yuan / share.

As of February 26th closing, stone technology stock price in recent days, although a slight callback of 443.01 yuan / share, but still the first high priced stocks.

The capital journey of stone science and technology is a story about Millet's "barbaric growth". When stone technology as the leading actor hits the capital market, with the aura of "the first high priced stock of the science and Innovation Board", where will the second half of the story go?

Stone technology has become the first high priced stock. - Song Wenhui diagram

The "secret" of the most expensive new shares

"Crazy stones!" In February 21st, stone technology listed on the same day, some investors exclaimed.

On the first day of listing, stone technology opened 73.35% higher and reported 470 yuan / share, more than the highest opening price recorded on the first day of the first day of the launch of Huacheng test and control board (355 yuan). After that, it quickly pulled up, hitting 538.88 yuan in the session, nearly double the issue price of 271.12 yuan. This means that if we calculate the highest price of 538.88 yuan, we will get a profit of 133 thousand and 900 yuan, and stone technology will become one of the most profitable new shares in the history of A shares.

The high issue price, which is superimposed after the listing, has also allowed stone technology to take off the aura of "the first high priced stock of science and Innovation Board".

With the issue price of stone technology coming out, the market's concern has shifted from "millet ecological chain enterprises" to "the most expensive new shares".

In the evening of February 9th, stone technology confirmed that the issue price was 271.12 yuan / share, the highest issue price of the science and technology board company, and the price of 148 yuan / share listed in 2010, which broke the highest issue price record in the A share market.

Although the price is high, valuation is not high in a public company.

The issue price of stone technology corresponds to 58.76 times the 2018 earnings after deducting the non diluted price, and 39.46 times the earnings after dilution. According to the EPS estimated in 2019, the dynamic P / E is 24.17 times. Compared with the same companies, Shi Tech's dynamic P / E ratio in 2019 is lower than that of Ecovacs and iRobot (25.62 times), which is basically equal to the industry's average price earnings ratio (24.02 times).

The reporter learned from the investment bankers who participated in the roadshow that the issue price of 271.12 yuan / share of stone technology is basically the same as the average of the underlying investors' quotations, and even lower than the lower limit of the proposed price range of 1.49 yuan.

"Stone technology pricing is high, mainly because the company's small plate and fast growth does not mean that it has a typical demonstration effect on the science and technology board." A senior investment bank official said.

Over the past few years, the performance of stone technology has been growing rapidly, creating a high profit per share after rock technology.

The latest prospectus of stone technology shows that, after preliminary calculation, it is estimated that the operating income in 2019 will be about 37.96-41.75 billion yuan, an increase of about 24.38%-36.82% over the same period last year. The net profit attributable to shareholders of the parent company is estimated to be about 7.02-8.24 billion yuan, up by about 128.13%-167.80% compared with the same period last year. The increase is about 50.25%-72.86%. Over the past 2016-2018 years, the annual average growth rate of net profit attributable to the parent company of stone technology has reached 532.59%, which is also in a state of rapid growth.

The listing of A has become the focus of the A-share market. This is only 5 years from the establishment of stone technology, but it is only 3 years from the launch of its first product.

Behind the barbaric growth is Millet's blessing.

"Barbaric growth" path duplicate

"Millet ecological chain enterprise" is a well known status of stone technology. Stone technology is also a listed company of third millet ecological chain after Hua MI and Yun MI.

According to the prospectus, the main business of stone technology is the design, development and production of intelligent hardware, such as intelligent cleaning robots, and sales. The main products are millet customized brand "Mi Jia intelligent sweeping robot", "rice household hand-held wireless dust collector", and its own brand "Stone Intelligent sweeping robot" and "small tile intelligent sweeping machine". People.

Less than 4 years from the launch of the first product, the development of stone technology has been swift and violent. In 2016-2018 years, the average annual growth rate of stone technology attributable to shareholders of the parent company is 532.59%.

This is almost unimaginable speed in traditional industries. And the growth of this performance can not be separated from its identity as a "helper" subsidiary of millet group and an ecological chain enterprise of millet.

Prospectus shows that in the first half of 2016 -2019, the related transactions of stone technology and millet group were 183 million yuan, 1 billion 11 million yuan, 1 billion 529 million yuan and 914 million yuan respectively, accounting for 100%, 90.36%, 50.17% and 43.01% of their main business income respectively.

On the other hand, for millet, ecological chain enterprises are also an important part of their strategy.

At the end of 2013, Lei Jun saw the trend of intelligent hardware and IoT (Internet ofThings, Internet of things). At that time, millet opened the ecological chain plan and set the goal of "investing 100 eco chain enterprises in five years".

In the preface of the book "millet ecological chain battlefield notes", Lei Jun recalls: "at that time only saw the trend, and IoT will become a real reality at least 5 years or 8 years. We decided to use millet to do the successful experience of mobile phones to copy 100 small millet, and advance the layout of IoT."

Spark has now produced a huge ecological chain system, which has a significant impact on millet and ecological chain enterprises.

In the capital market, Lei Jun and his IoT have also begun to enter the harvest period.

As of June 30, 2019, millet invested more than 270 companies, with a total book value of about 28 billion 700 million yuan. In these eco chain enterprises, more than 100 companies focus on intelligent hardware and consumer goods, of which China and Mickey have been listed in the United States last year. In January 21st, stone technology was listed on Ke Chuang board and became the third listed company of millet ecological chain.

In addition, there are 9 companies listed or listed in direct and indirect investments, namely, the core stock, Heng Xuan technology, No. nine intelligent, Chuangxin laser, and listed LOXin technology, Fang Bang shares, Jingchen shares, Jinshan office and poly Chen shares.

However, looking through all previous audit questions of stone technology, we can find that the relationship with millet has always been the focus of regulatory attention. In the eyes of many market participants, this is closely related to the future development of stone technology.

According to the prospectus, the cooperation mode between millet and ecological chain enterprises is mainly as follows: in the process of cooperation between millet and ecological chain enterprises, ecological chain enterprises purchase core raw materials by themselves or purchase raw materials through millet, and entrust foundry manufacturers to produce relevant hardware products according to their requirements. Customers and company customers sell.

In this process, the strong brand and channel advantages of millet enabled the eco chain enterprises to quickly open sales volume at the initial stage of creation, but at the same time, ecological chain enterprises also had a serious dependence on millet.

Millet ecological chain B surface

After several rounds of inquiries, stone technology also listed at the beginning of the prospectus listed millet cooperation mode may bring adverse effects on the company's future business, including the existence of a large number of related transactions during the reporting period millet and millet, the main income and profits rely on millet. ODM business, millet custom products lower gross margins, competition with rice products, private brand sales channels rely partly on millet, the choice and replacement of OEM vendors depends on whether millet can be divided into profit sharing mode, depending on millet, millet patents, millet and the company's core suppliers coincide, millet related parties and the company's equity relationship. And the risk of implementation through equity relations is as high as 10 risks.

According to the twenty-first Century economic report, some of the risks have already been revealed.

For example, in terms of patents, stone technology is disclosed in the prospectus, and the patents related to MI family products are shared with millet. As of the first half of 2019, there were 59 domestic patents and 5 overseas patents for the company and millet. According to the agreement on business cooperation signed by the company and millet, both parties have the right to implement their own common intellectual property rights without having to notify the other party and share the proceeds. "The above clause guarantees the right of the company to use the common intellectual property rights. At the same time, according to the above agreement, neither party shall assign or license the intellectual property rights to the third party without the prior consent of the other party. However, Xiaomi has the right to use patents independently to produce related products. Stone technology frankly said that if the future use of millet alone, a total of patented production of intelligent ground sweeping robot products, will have a significant adverse impact on the company's business.

With the existence of shared patents and a single risk of main products, the intelligent sweeping robot produced by more millet ecological chain enterprises has appeared in the big family of MI family products. Like millet belongs to the ecological chain enterprise cloud rice technology has begun to set foot in the production and sale of sweeping robots.

If the scale of millet eco chain and other enterprises to sell intelligent land sweeping robots continues to increase, and the company can not continuously provide high-quality products and services in accordance with market demand in time of competition, the performance of stone technology may be affected.

In addition to providing foundry for the ecological chain of millet, stone technology has been developing its own brand in recent years. The first robot of its own brand is the robot for sweeping and dragging, which adds the function of mop the floor, and it forms a differential competition with the rice floor sweeping robot.

Public information shows that stone has commissioned two ground sweeping robots for millet. One was launched in 2016, and the other was 1S, which was subsequently updated. It was listed in April 2019. Stone technology has never provided millet with a more advanced sweeping and integrated robot.

"There must be many games behind this. For example, stone does not want millet to sweep its own brand, or the stone wants to increase its proportion, so the two sides can not agree." Industry researcher Cui Peng pointed out.

But in August 2019, 2 years after stone technology launched its sweeping and dragging integrated machine with its own brand, Xiaomi also launched the sweeping and towing machine of the rice brand, while the manufacturer was cloud rice technology. It is worth noting that cloud rice technology was originally only the manufacturer of the foundry water purifier in the ecological chain of millet.

In the IPO prospectus, stone technology admitted: "according to the Jingdong, Suning and Tmall official flagship store enquiries, cloud technology's sweeping robot includes products using inertial navigation technology and products using laser navigation technology, which are similar to the technology of the company's small tile brand and stone brand."

Because of the similar appearance of the first sweeping robot made by Yun Mi technology for the millet foundries and the stone technology for millet, Cui Peng pointed out that this may well mean that many of the structures and appearance patents of stone technology in the first sweeper are owned by both stone and millet.

Not only has patent rights been shared, and so on, so that one side of millet can empower other enterprises inside it to make the competition of homogeneous products more intense, and in some new technology tracks that have not yet been involved in stone technology, millet has also pioneered the use of eco chain companies to launch new players, which has created a new market competition pressure for stone technology.

From a technical point of view, the popularity of stone technology before its products is inseparable from the good navigation effect brought by its laser navigation technology. Stone technology indicates that in order to achieve the best positioning effect, the company has chosen the best (but cost-effective) LDS (Laser Distance Sensor) lidar + SLAM (Simultaneous Localization And Mapping) algorithm, that is, synchronous location and map building technology. This is much better than the previous navigation of sweeping robots based on random navigation and inertial navigation.

But in October 2019, Xiaomi launched the "Mi Jia sweep robot 1C", which has taken the lead in adopting the technology path of visual navigation. The price is only 1299 yuan, which is much lower than the price of laser navigation products before. Compared with the high cost of laser radar, the ground sweeping camera with visual navigation technology has lower cost and longer life. And this new manufacturer using visual navigation technology is looking for Technology (Tianjin) Limited for another millet ecological chain enterprise.

Obviously, in the field of sweeping robots, stone technology has been faced with multiple racetracks in the MI family system.

At present, stone technology's own brand products and millet brand products are being sold at the same time, but because the current high quality intelligent sweeping robot market belongs to the incremental market, the problem of direct competition is not big, but there will be direct competition in the following development. The ecological chain of millet provides a valuable product exposure rate for its products, brand endorsement, high quality and cheap online traffic, which has multiplied the hatching of new products. And the profit margin of its own brand products has more advantages, so as long as the company can actively look at the cooperative relationship with Xiaomi, it is more meaningful for stone technology. Zhang Rui, chairman of island assets, said.

There is not only internal competition, but also the pressure on stone technology from outside.

Similarly, in the laser navigation circuit, Ecovacs, the old listed sweeping robot company (603486.SH), is also on the rise. The sales statistics of double eleven environment and small electricity sales released by China in 2019 showed that retail sales of sweeping robots increased by 5.8% over the period from -11 to 17 in November 4, 2019. Among them, the sweeping robot with laser navigation technology has gained more users' recognition by virtue of excellent planning and planning ability, accounting for 57% of the retail sales. Among them, the Ecovacs T5 series sweeping robot (DX65) ranked first in the category of retail sales in the double eleven period in 2019, and also the first retail share in laser navigation technology subdivision products, far exceeding other laser navigation sweeping robot products. (Editor: rono)

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