Jingdong Hongkong Two Listing "618" Leveraging Capital Circle

In June 18th, with the "618 shopping Carnival", Jingdong group was officially listed on the main board of Hongkong stock exchange.

The Jingdong's two listed offering price is 226 yuan / share. In June 18th, Jingdong group (9618.HK) increased its bid price by 7%, at HK $242 / share, and the opening price rose by 5.75% to HK $239 / share. At closing time, it rose 3.54% to HK $234 / share, and the turnover also hit 7 billion Hong Kong dollars, and Tencent Holdings (0700.HK) became the two main force on the same day.

The announcement shows that the Hongkong public offering of Jingdong group has been over 179 times the public offering. The international sale price and the Hongkong public development price will eventually be HK $226 per share. If it fails to make the excess allocation of shares, the net proceeds of the global offering will be about HK $29 billion 771 million. It has become the new Hong Kong Stock Exchange's "attracting money king" since the beginning of this year, and the second place in the fund-raising amount is another NetEase's 24 billion 300 million port. Yuan.

It is reported that a number of Jingdong listed the two time to launch new investors to sell profits on the first day of listing. Some people in the industry think that they can hold for a long time, and suggest that investors do not have to rush to sell. The recent stock price volatility of Hong Kong stocks is relatively large, and the recent upward trend in stock prices has been formed in the recent strong performance of Jingdong US stocks and the positive stimulation of "618".

Fight the new "king of sucking gold"

"The return of stocks is a hot topic in recent years, including the return of Jingdong, which has attracted a lot of attention from funds. These stocks have brought new investment opportunities to investors, most of them are star companies, and they can be concerned about." Yang Delong, chief economist of Qianhai open source fund, said.

Xuan Jia financial CEO Lin Jiayi believes that the new strategy should be based on fundamentals and valuations, and the best relatively high margin of safety should be bought and held for a long time. If it is pure arbitrage of new shares, it should sell high on the first day.

According to the twenty-first Century economic report reporter, a large number of institutions and investors participated in the Jingdong's fight. In fact, only 179 times the sale of public offerings in Hongkong alone. If it fails to make over allotment of shares, the net proceeds from the global offering will be nearly HK $30 billion, and the fund-raising will be the first place in the Hongkong market this year.

So what about the first batch of new funds to invest in Hong Kong stocks?

"The Jingdong finally priced HK $226, a discount of 4.36% compared with the US $60.98 of the previous day. In view of the fact that Jingdong's discount rate is higher than that of NetEase and Alibaba, this has attracted some investors to sell profits at the beginning of the sale. At present, the performance of Jingdong listed on the first day is weaker than that of +6.6% and +5.69%. In June 18th, tiger securities told reporters.

Tiger securities gave reporters a simple account. If investors sell at HK $239, the yield is 5.75%, earning 650 Hong Kong dollars per hand (excluding the handling fee); if investors hold 233 Hong Kong dollars to sell at the end of the month, the new rate of return is only 3%, after excluding the fees, they basically do not make money.

"We suggest that investors should not rush to sell. On the one hand, Hong Kong stock market was affected by speculative capital for a few days before listing, and the stock price volatility was relatively large. On the other hand, the recent Jingdong US stock market's strong upward trend in the first quarter and" 618 "and other good incentives have led to the upward trend in stock prices. According to the latest US $62.01, the corresponding Hong Kong stock price is HK $240. The Hong Kong stock market has a premium of about 3%. Tiger Securities said, "we believe that the trend of US stocks can better reflect the long-term growth potential of Jingdong, and the stock price of the two markets will eventually become the same."

In fact, a number of public fund holders interviewed by reporters said that they were very concerned about the return of Jingdong, and the future stocks would be returned to these high-quality stocks. As quality stocks are added to each stock index, active and passive funds will also be gradually increased.

"618" complex

June 18th is the happy day of Jingdong's home. It is both the birthplace of Jingdong and the "618 shopping Carnival" of the whole people and the electricity supplier opened by Jingdong.

In June 18, 2020, Jingdong landed on the two listing of the Hongkong stock exchange.

At the listing ceremony, Jingdong first displayed the "618" data screen for the first time this year, from 0 in June 1, 2020 to 14 in June 18th, and the total amount reached 239 billion 200 million yuan, more than last year's "618" big promotion of 18 days 201 billion 500 million yuan.

According to Jingdong's public information, in 2017, 2018 and 2019, Jingdong achieved net income of 362 billion 300 million yuan (RMB, below the same), 462 billion yuan and 576 billion 900 million yuan. In 2017 and 2018, Jingdong continued its business operation with a net loss of 19 million yuan and 2 billion 801 million yuan. In 2019, it continued to turn losses into business and realized a net profit of 11 billion 890 million yuan.

From the first quarter of this year's performance, its revenue was 146 billion 200 million yuan, an increase of 20.7% over the same period last year, net profit of about 1 billion 100 million yuan, profit of 7 billion 300 million yuan in the same period last year, and net profit of non US general accounting standards was about 3 billion yuan, a slight decrease compared with 3 billion 300 million yuan a year earlier.

Jingdong expects revenue in the second quarter ranged from 180 billion yuan to 195 billion yuan, an increase of 20%-30% over the same period last year.

The Jingdong model, which has been questioned, has two characteristics: one is the self operated mode; the two is self built logistics.

The same is the electronic business platform, Jingdong created the "618", Ali made a double 11. But when Ali broke loose and became a commercial empire, Jingdong lost money for many years until Q1 turned into a profit in 2019.

The core business logic of the two is different. Some people in the industry have likened that Taobao is more like an online version of the Yiwu mall, while Jingdong can be likened to the online version of WAL-MART supermarket.

Most of the small businesses in Yiwu come from businesses, and the market only needs to provide "stalls" to businesses to collect rents, making it easier to make profits. And WAL-MART's products are more proprietary, that is, the purchase of their own, their own sales, earn the difference between the transaction.

Unlike Alibaba, Jingdong has built its own goods, self built warehouses, and self built logistics, and has embarked on the "instant delivery" road. When the Jingdong covered warehouses and logistics all over the country, the volume of orders was large enough. Under the scale effect, Jingdong gradually formed its own "moat".

Jingdong's share price has risen sharply this year due to improvements in fundamentals, plus Beijing Xi growth, benefits from the epidemic and rebound in US stocks. In June 17th, the US stock of Jingdong group (JD.O) closed at $62.01, up 1.69%, to a record high. The share price rose 76.01% and the market value was US $95 billion 800 million compared with the beginning of this year.

Jingdong is still optimistic about this mode of stamina.

For the US stock of Jingdong group (JD.O), the target price of the first Shanghai securities recently was $68, buying rating. The reason is that the Jingdong mall and logistics show excellent performance capabilities during the epidemic. Although sales of some products are affected in the short term, it will accelerate the penetration of electricity providers and increase the number of users in the long run.

For the Hong Kong stock of Jingdong group -SW (9618.HK), the rating of Sino Thai International Securities is "purchase". The reason is that because the company has a strong logistics system, the whole supply chain effect can be maximizing efficiency in the future, and it is possible to spin off Jingdong's logistics listing in the future, which will help to raise the relevant valuation level. Jingxi's small program and the strategic cooperation between the company and the fast hand can expand the growth space of the sinking user market for the company. In addition, considering the company's listing in Hong Kong, future opportunities to include Hang Seng, Hong Kong stock exchange, other Asian indices and mainland investors are more familiar with the company and other factors, which will stimulate future share price gains.

?