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?

zhiwo

By zhiwo

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helpmekim
6 months ago

If it is listed on the A-share market, HiSilicon is almost worth the price. Photovoltaic inverters are an inconspicuous small division of Huawei. Its market share is the largest in the world, and it far surpasses the second in the world. The second in the world is also in China. It is an A-share listed company with a market value of nearly 100 billion. 1.1 trillion yuan looks like a lot. It is less than 170 billion US dollars, which is lower than our company’s market value. Our company’s scale and profit are the younger brother to Huawei. Huawei is a real giant company.

heloword
6 months ago

If 1.1 trillion yuan is RMB, it must be underestimated. In the first half of 2020, despite the epidemic, domestic economic downturn and international pressure, Huawei’s revenue still reached an astonishing 454 billion yuan. At present, Huawei has more than 100,000 patents, and it has the highest number of 5G invention patents, even more than Qualcomm and Cisco combined. Ni Guangnan, an academician of the Chinese Academy of Engineering, introduced the market value ranking of global information and communications companies. Among the top 10 companies, there are 6 in the United States, China has Huawei, Ali and Tencent, and the last is Samsung. Ni Guangnan spoke highly of Huawei: Although Huawei is not listed, it has an estimated market value of US$1.3 trillion, ranking first in the world. Academician Ni Guangnan said that from the perspective of business and innovation, this valuation problem is not very big. By the way, this is still the 2019 valuation.

helpyme
6 months ago

From the perspective of valuation, Huawei’s sales and profits are less than Samsung, and its valuation of RMB 1.1 trillion is reasonable. But if it comes to my A-share listing, at least 3 trillion yuan. Look at Maotai, which is worth three trillion yuan. Huawei, which has mastered core technology, has sales and profits far surpassing Maotai. A valuation of 3 trillion yuan is not excessive. However, Huawei’s structure is basically impossible to go public. But there is no shortage of money, and there is no need to cash out. It would be nice not to go public.

sina156
6 months ago

Someone once told me that if you think you have a lot of money, then convert it into U.S. dollars, so that the number before the decimal point can be easily checked. Although Huawei is worth as high as 1.1 trillion, I can convert it into U.S. dollars if the math is not good. 170 billion, which saves the opportunity to check your fingers. But to be honest, few domestic R&D and sales are done like Huawei. It may be that Huawei is too strong. It moved the chip of cheese and caused US sanctions. Of course, chip sanctions are just For a small part, Huawei’s service capabilities among major companies are still very strong, and it is not easy for the United States to give up for a while. If Huawei is not so strong, it will not be regarded by many manufacturers as the comparison object of “friends”, and it will not be “K” for a series. It is not terrible. The terrible thing is the strong technical strength behind it. The key to summit

yahoo898
6 months ago

A new era has arrived. Let’s get in touch with several recent events: First, at the China-US Alaska talks, Director Yang told the US Secretary of State face to face, “You are not qualified to speak in front of China, and you talk to China from a position of strength.” It is China’s sanctions on some EU members, including “they and their affiliated companies and institutions have also been restricted from communicating with China.” The third is Huawei, which has been suppressed almost in all directions by the strength of the United States, the world’s largest superpower, for three years. Not only has it not collapsed, it has also ranked among the top 100 Chinese private enterprises with a value of 1.1 trillion. Why does it have this strength, because Huawei’s 5 patent family is the world’s first. The future of the world looks at 5G. The leader of 5G is Huawei, and the leader of 5G is China. In fact, it is more than 5G. Chinese manufacturing companies represented by Huawei, ranging from labor-intensive clothing and footwear to technology-intensive 5G, robotics and artificial intelligence, are achieving a full catch-up with developed countries (not to say catching up, the strength of the old empire is still Very strong). With the advantages of the entire industry chain and the huge market size, Chinese companies have gained an exclusive advantage that foreign companies envy but fear. As far as I am dealing with antiques, in the past ten years, Chinese antique dealers have been sweeping the global “Chinese art” auctions. How many European and American antique dealers specializing in Chinese art are unsustainable and have changed their businesses, and how many European and American auction houses are competing to take the Chinese first. Talent, welcome Chinese buyers. When the United States began to frantically suppress Huawei, I was also worried. Later, I thought about it carefully. The United States was so nervous that it would do such a thing of killing one thousand enemies and self-defeating eight hundred. The United States’ suppression of Huawei is the last and strongest counterattack of the veteran empire. However, those who can’t kill us will eventually make us stronger! Economic strength has given Chinese diplomats full confidence and support for China’s military power. That’s why the Chinese diplomatic team and the American diplomats face each other in the Alaska venue. I hope that China has more and more leading global companies like Huawei.

leexin
6 months ago

Huawei fans, for nothing else, are aimed at entrepreneurs for the independence of the company, and in order to make decisions that are not interfered by market factors, they just do not go public, and they do not intend to cut leeks to make quick money in the capital market. This is very worthy of respect. After all, in comparison, how many companies in the secondary market don’t want to do their own business, but just want to beautify the report as soon as possible to go public, so that the company’s management can realize financial freedom. If Huawei goes public, I personally feel that no one in the A-share market can fight it, and neither can Moutai. Suddenly remembered that I had read a joke before: Debt Sale: Brother, can’t see the AAA debt of private enterprise? Investment sponsor: Oh, it’s no way…It’s not that brothers don’t help, it’s that the company really doesn’t look at the debts of private enterprises…you know. Debt sales: So, Huawei MTN…Investment sponsor: How many quota brothers are there! Save me some! This is the true “goodwill” of the company.

greatword
6 months ago

Just say one thing, it’s obviously underestimated. Many of Huawei’s benefits have not been realized, so the so-called revenue is only a small part of the unrecognized. Huawei feels that it has recently been short of money to charge a small amount of patent fees, so for every mobile phone sold in the world, it has to pay 0-2.5 US dollars. This is ability and domineering. Sometimes the wealth seen is incomparable with the invisible wealth. However, many companies cannot convert hidden wealth into actual wealth. And Huawei, just think and don’t want

loveyou
6 months ago

Huawei is not listed, and this value is probably a little more than revenue. If calculated based on the current valuation level of the A-share technology sector plus Huawei’s appeal and grouping effect, if Huawei is listed as a whole, PE can reach 100. In 2019, Huawei’s profit will be about 63 billion, and the corresponding market value should be 6 trillion yuan. Of course, it may be higher. Under the influence of the overall mood, it is not impossible to break 10 trillion. The above is pure speculation, because it is impossible for Huawei to go public.

strongman
6 months ago

Huawei’s valuation in 2021 is 100 billion less than the valuation in 2020 and 2019. It seems that the US ban will have an impact on the overall valuation, but the impact is also extremely limited. Midea has risen a lot, and Haitian Flavour has also come up. I feel that this list is of little significance to Huawei, and there is no reference standard for valuation. Huawei has no advantage in ranking from the perspective of big consumption. Many of Huawei’s businesses should not be counted in the consumer sector, and the overall valuation should be low. Maotai has a valuation of 2.4 trillion yuan, and Pinduoduo has a valuation of 1 trillion yuan, so Huawei is indeed low.

stockin
6 months ago

This is the backbone and ambition of independent innovation, and the fruitful results! This is the honor that Huawei deserves! This is the best reward for Ren Zhengfei and his team’s hard work and entrepreneurship! Congratulations to Huawei! China’s top 500 private enterprises, this list reveals more interesting information about Huawei and his 499 little brothers. We can interpret it together: 1. From 2016 to 2021, Huawei has been ranked No. 1 among private enterprises for five consecutive years. Revenues were respectively 395 billion yuan, 521.6 billion yuan, 603.6 billion yuan, 721.2 billion yuan, 985.5 billion yuan, and 1.1 trillion yuan. The average annual revenue growth rate reaches 20%. In the first half of this year, in such a sinister international situation, it still reaped 550 billion yuan in half a year. It is estimated that next year will still be number one. What does it illustrate? Strong core technology, strong innovation ability, strong quality brand, strong talent team! Only with these 4 strengths can we rise in the future for a long time, and compete with the world’s first-echelon giant companies for the future. 2. Huawei is indeed a respectable company, a company that represents the glory of China, and a company that fully embodies our Chinese spirit. A. Huawei did not engage in real estate, but in technology, and to overcome the most technically difficult and sophisticated technology. B. Huawei’s market is not limited to China or Asia, but the world. C. Huawei’s technology did not imitate, but went beyond, to lead the development of global communication technology. D. There are very few corruption incidents inside Huawei, but more stories of hard work and the overall hard work of the team. 3. Some people may ask, why are there no Ali, Tencent and Baidu in this list? Tell everyone, because the three of them should be foreign-funded enterprises to a certain extent. Ali’s largest shareholder is Japan’s Softbank Investment, Tencent’s largest investment is South Africa’s MIT Group, and Baidu’s largest shareholder is a century-old investment company in Scotland. Moreover, these three companies are all listed on overseas exchanges, so they cannot be regarded as purely private enterprises. 4. Among the top 20 private enterprises this time, only 4 are real estate companies. It shows that the development potential of our private enterprises is still huge. They are not developed by policy dividends, but are invested in industry and developed with hard work. Why is Xiangjiang so messy now? Without the four major real estate families, there should be better economic development and core industrial competitiveness. We congratulate Huawei, and we congratulate these 500 private enterprises. I hope that in the future, it can develop better and more energetic, and become a real world brand.

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