On the 23rd, the Hurun Research Institute released the 2021 China Top 100 Consumer Private Enterprises List. The list shows that Huawei, Midea, and Haitian rank in the top three, among which Huawei is worth up to 1.1 trillion yuan. This is the first time the Hurun Research Institute has released the list. Hurun Report Chairman and Chief Research Officer Hu Run said: “China’s large consumer companies are getting larger and larger. On this list, more than 70% are among the top 500 Hurun China, and more than 10% are among the top 500 companies in China. Hurun Global 500.”
In this ranking, Huawei is underestimated. Why is it that Huawei ranks first and is still underestimated? The basis for checking the list: “This list does not include state-owned enterprises. The state-owned enterprises with the highest value in China’s major consumer sectors are mainly in the liquor, tobacco, and automobile industries.” Hurun Research Institute pointed out that “Chinese private enterprises” refer to For non-state-owned enterprises headquartered in mainland China, the market value of listed companies is calculated based on the closing price on March 9, 2021, and the valuation of non-listed companies is estimated with reference to listed companies in the same industry or based on the latest round of financing. In other words, the market value of a listed company is very simple, just copy it directly; Huawei is a non-listed company and does not raise funds, so according to Hurun’s standards, it should refer to listed companies in the same industry. Are there any companies that Huawei can refer to for A-shares? No. So this valuation is not accurate at all. Take Huawei’s 2019 annual report as an example (the 2020 annual report has not yet been released): 1. Revenue of 858.8 billion yuan. This kind of revenue scale, placed in A shares, ranks fifth after Sinopec, PetroChina, China Construction and China Ping An. Because the bank’s business model is rather special, we remove the bank, and it will be ranked fourth. Everyone here knows the origins of the top three. From the perspective of revenue scale, Huawei is very strong. 2. Net profit of 62.7 billion yuan. This kind of net profit scale, placed on the A-share market, ranked 12th. Excluding banks, it is still fourth. The top three are still Sinopec, PetroChina and China State Construction. Everyone here knows the origins of the top three. In terms of net profit, Huawei is very strong. 3. Research and development expenditure. In 2019, Huawei’s research and development expenses were 131.7 billion yuan. In A-shares, China Construction has the highest R&D expenses, with 17.3 billion yuan. Huawei’s R&D expenses are the sum of the top 10 A-share R&D expenses. They are: China State Construction, China Railway Construction, China Railway, China National Petroleum Corporation, SAIC, China Communications Construction, ZTE Corporation, CRRC, China Power Construction , China Metallurgical. In the past 10 years, Huawei has invested a total of 600 billion yuan in R&D. 4. Salary and salary In 2019, Huawei’s employee expenses were as high as 168.3 billion yuan, of which salary-based compensation was 134.9 billion yuan. According to reports, Huawei has about 194,000 employees. Based on this number, the per capita salary is about 700,000 yuan. The money Huawei spends on employees is almost three times the net profit. Ren Zhengfei said that Huawei does not have 996, and I think if I were a Huawei employee, I would also recognize it. Why do you never learn Huawei’s wolf culture? Wolves travel thousands of miles to eat meat, dogs travel thousands of miles to eat shit. 5. Business Scope While we are staring at Huawei being restricted by the United States, in fact, Huawei’s real market is developing in an orderly manner. In Asia, Africa and Latin America, developing countries are carrying out a rapid communications revolution. The company’s revenue in Europe, the Middle East and Africa accounts for about a quarter of all revenue. BYD’s 120 billion revenue and 2 billion net profit (1.7 billion comes from government subsidies) are valued at 490 billion; if the revenue and net profit are almost 8 times that of BYD’s Huawei on the Science and Technology Innovation Board, you guess the valuation will not Will it be 8 times that of BYD?