Is Tencent really “whatever is invested”?
Editor’s note: This article is from WeChat public account “autocarweekly” (ID: Autocarweekly), by Karakush.
Many people don’t understand Tencent.
Foreign countries are more confused than domestic ones. In the past 11 years, they have invested in more than 700 companies. According to the Financial Times, more than 400 of Tencent have board seats, and 30 to 40% of the projects are not in China.
Tencent is a BAT giant in China. There is no reason for expansion. I am happy to do it. Tencent is a large-scale game and social platform company, but its investment potential is far greater than that of Facebook and so on. It doesn’t matter with the eight-pole business of its main business.
Last year, a slogan “Tencent has no dreams” was circulated on the Internet, and Tencent’s investment strategy was analyzed. Later, the author Pan Chao made a simpler and more direct explanation for CNN. “There is no logic behind Tencent’s investment. It is all invested.”
A few days ago, Tencent made another somewhat puzzling “whatever casts” –
It has formed a buyer group with companies such as Black Horse Capital. It intends to privatize all the ordinary shares of the car that are not currently owned by the buyer group at the cash price of US$16 per ADS. .
In the rim, people are a little excited, and privatization releases Tencent’s signal to deepen its “car bureau”. It’s like sitting in a dog, going to the pocket and winding around your waist, it’s all yours. This is the old aunt who sells tea eggs on the stock exchange to talk about the stock market.
We can look at it slightly more carefully.
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Why is it an easy car? It is not a good target.
The two days were stimulated by privatization news, and the stock price rose to $14.98 and the market value reached $1.05 billion. Previously, due to years of losses, the performance in the capital market has not been very good – although it is the first car Internet company listed in the United States, listed on the New York Stock Exchange in 2010, and reached a high of 98.28 in 2014.
The past two quarters are another example. The financial report shows that in the second quarter of this year, the revenue of the car was 2.792 billion yuan, up 8.9% year-on-year; the net loss was 136.2 million yuan, compared with the net profit of 27.4 million yuan in the same period last year. Zhang Xuan, CEO of Easy Car, said that the main reason is that China’s auto market continues to be weak, and many auto companies have reduced their advertising expenses. The sales of new cars in China are not optimistic.
However, compared to the car home of another car Internet company, you will find the joy of the same paragraph as “the national unfortunate poet.” The more the budget of Party A is tightened, the more it gathers in the head. In the second quarter of this year, the family’s revenue was 2.309 billion yuan, a year-on-year increase of 23.55%; net profit reached 802 million yuan, an increase of 15.94%.
In 2014, when Li wanted to see Li Bin for the first time, he pointed out the difference in the mode of Yijia and his family. The former is to purchase traffic to realize, and the latter is to create content to attract traffic and then realize it. After many years, the difference has created a gap – the rapid growth of the data on the operation of the car is driven by the burning of marketing and sales expenses. Due to the high cost of the customer, the profit is bound to be difficult. This is not a gap that can be quickly narrowed down. If you want to measure it by numbers, look at the market value. The current home is $11.08 billion, which is 10 times that of an easy car.
The industry generally believes that compared with its own, the core value of the car is more than its own Yi Xin. In the revenue of the car, the proportion of up to 50% or even 60% of the revenue is the transaction service fee, which is from Yi Xin. It was originally the auto finance division of the company, which has been operating independently since 2014 and listed on the Hong Kong Stock Exchange in 2017. At present, its market value is 13.51 billion Hong Kong dollars, which is far more than easy to drive.
According to the report, when the first car in 2015 and Tencent Capital cooperated, Zhang Xuan actually used Yi Xin as a financial platform to convince Tencent President Liu Chiping to invest. In the conditions of the opening, it has been pointed out that “investment Yixin, but also invest in easy car.”
According to Yi Xin’s announcement, after the completion of the privatization transaction, the legal control of the car will change, and the buyer group will also gain control of Yixin. The rim believes that this is the way for Tencent to pave the way for the trillion market of auto finance. Tencent’s layout in the automotive field has been very extensive, and now it is afraid to make up for the development of the map.
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For Tencent, having investment value does not mean that it needs to be privatized. The purchase price of $16 is a premium of 30.6% over the average transaction price of the past 30 days.