As a mage, I just want to pursue the truth

Chapter 63 On the eve of listing
Rice’s new machines are always most popular when they are first released, but the stock is insufficient and needs to be snapped up.

This is also the hunger marketing that rice has always been criticized for, which is monkey tricks.

By the time the production capacity of Rice's new phones increased, they were no longer as attractive as the new phones in stock from rivals, so they could only be sold at a lower price.

The price reduction caused Mi fans who bought the new phone first to feel that they were losing out. I bought it half a month earlier and lost three hundred yuan, and after a month I lost five hundred yuan.

It’s better to do it next time.

Compared with Xiaomi’s previous new phones, this time the Xiaomi Mix 4 is more popular and harder to grab. It was sold out in less than five seconds after it was released at a.m.

Lei Jun’s Weibo posts every day are:

"Please hurry up and launch Mr. Lei's new machine."

“Can production be increased?”

"Can you please stop playing tricks on me this time? I'm a Xiaomi 6 die-hard fan and really want to buy one this time."

"Boss Lei, why don't we go to the factory and tighten the screws ourselves?"

"It's not shameful to personally tighten the screws, but it's shameful to make fun of the fans every day."

The beyond-expectation performance of the first brain-computer-connected mobile phone, Mi MIX 4, has made the listing of Kechuang Biotechnology on the Science and Technology Innovation Board even more anticipated by investors.

Kechuang Bio's first-quarter quarterly report maintained high growth, with total operating revenue for a single quarter exceeding the full year of 2020, reaching 22.71 billion yuan, with the main source of income coming from the production and sales of endorphins and patent licensing.

The non-GAAP net profit in the first quarter was as high as 10.745 billion yuan, with a net profit margin of 47.3%, close to %.

This is because the profits from brain-computer connection patent licensing have not yet been released.

At this time, Kechuang Bio has completed the inquiry and rectification stage of the Shenhai Stock Exchange and has entered the China Securities Regulatory Commission to carry out the issuance registration procedures.

In this step, the CSRC needs to decide whether to agree or disagree with Ke Chuang Bio's registration application within 20 working days.

Given Kechuang Bio's own qualifications and profitability, the CSRC had no reason to reject it, especially since it is a completely local high-tech enterprise in China.

Chinese people have absolute controlling rights in the company, and their nationality has not been changed for tax avoidance even on the eve of listing.

The outside world generally believes that the China Securities Regulatory Commission will approve Ke Chuang Bio's listing as quickly as possible.

In forums such as Oriental Fortune's stock bar, Flush's stock bar, and Snowball, discussions on scientific and technological innovation are particularly heated.

"The valuation of 4072.93 billion RMB is not high at all. The profit of Kechuang Bio in the first quarter was 10.745 billion RMB. If we only calculate the value of endorphins, this valuation is definitely too high.

However, we must take into account that Kechuang Biotechnology is the only player in the field of brain-computer connection, and there are currently no brain-computer connection companies in China that can see the taillights of Kechuang Biotechnology.

This year, Ke Chuang Bio has signed patent licensing contracts with domestic and foreign first-tier mobile phone brands such as Dami, OV, Huawei, Samsung, and Apple. The patent licensing fees here are calculated based on the number of brain-computer connected mobile phones.

根据IDC发布的2020年上半年华国手机高端市场容量在2350万台，我算全年是4700万台，预计2021年高端市场跟2020年保持不变，那么也时4700万台。

Among them, the proportion of brain-computer connected mobile phones should be 1410% according to the lower limit, which is 200 million units. The patent licensing fee for a single brain-computer connected mobile phone is yuan.

I calculated the lower limit of the patent technology license for brain-computer connection alone, and the annual profit contributed by this part in 2021 is also 28.2 billion yuan. And the worst case scenario is that brain-computer connection mobile phones account for %, considering the factor that production capacity cannot be increased.

What’s more important is that the profit from brain-computer connection is basically net profit. Kechuang Biotechnology adopts the same strategy as Qualcomm in the field of brain-computer connection. I only do technology licensing and technology research and development.

It is estimated that Kechuang Bio's full-year profit in 2021 will be at least 70 billion yuan.

A company that holds patents for endorphins and brain-computer connections, and has formed absolute domains in these two sub-sectors of scientific and technological innovation and biology.

Is the valuation of 4072.93 billion really expensive?
In my opinion, the valuation of Kechuang Bio is just giving money to everyone. Don’t you see that a large number of companies on the Science and Technology Innovation Board are still in a loss-making state, while a large number of biopharmaceutical companies on the Growth Enterprise Market and the Main Board enjoy a price-earnings ratio of more than 100?

The price-to-earnings ratio of CStone Bio is less than 100, and it is a high-growth technology company.

This valuation is really not high at all.

Judging from future profit forecasts, with the release of brain-computer connection chip production capacity, Ke Chuang Bio's profits from brain-computer connection patents can maintain a high growth trend.

The second phase of the endorphin production base has also begun construction, and the profits from this part will be gradually released in the future.

Endorphins not only have analgesic effects, but also have the important effect of reducing the addictiveness of drugs and even dupin.

It has substitutes for pain relief, but there is no substitute for reducing drug addiction. It can be said that endorphins are to Kechuang Biotechnology what growth hormone is to Changchun High-Tech and what Pien Tze Huang is to Pien Tze Huang.

But unlike those two companies, Kechuang Biotechnology does not rely on just one leg, it also has brain-computer connection.

The current brain-computer connection is only a very superficial application in this field. In the future, the first thing to do is to develop patents for brain-computer connections in English, Arabic and other languages, which will be able to maintain high profit growth for Ke Chuang Biotechnology for many years.

The second is the application of brain-computer connection in other areas. I don’t understand the technical things, but judging from the rapid development of scientific and technological innovation, I believe that the future of scientific and technological innovation is more worth looking forward to.

The only thing that makes me feel dissatisfied is the listing price of Kechuang Bio. The total share capital is 4 million shares, and the issue price is 1018.23 yuan.

This price is just the listing price. Once it is officially listed, it will definitely be driven up instantly. The price per lot is too high, which is not favorable for retail investors.

Personally, I feel that after its listing, Kechuang Bio will become the exclusive domain of institutions just like Moutai.

The price for retail investors to buy and sell one lot is more than 100,000 yuan, and in the future it may be more than 200,000 yuan. This price is difficult to withstand fluctuations.

But no matter what the listing price of Kechuang Bio is, I will buy one and keep it, and grow together with this great company!"

In places like stock forums, veteran stock investors usually have a calculator in their hands and can calculate the company's profits and future earnings very quickly.

Most people who can survive in the A-share market for many years without losing money have some unique skills.

"I have always agreed with the saying that Sinovation Biotech is to the Science and Technology Innovation Board as CATL is to the ChiNext.

Since its establishment, the Science and Technology Innovation Board has never had an overall leader like the Main Board and the Science and Technology Innovation Board. When Sinovation Biotech completed its B round of investment, I saw it in the news and realized that Sinovation Biotech was the leader of the Science and Technology Innovation Board.

Without a leader, how can the Science and Technology Innovation Board, this giant dragon, fly?
China has been advocating independent innovation and technological strength in recent years. In my opinion, Kechuang Biotechnology perfectly interprets these eight words. "

(End of this chapter)