“I think excluding cutting-edge technology, AI, blockchain, big data, cloud computing, and Mobao payment.
As far as the fundamentals of Ruixiang Group are concerned, an annual net profit of US$200 million and a PE valuation of US$6 billion at 30 times are not too much, right?
AI, blockchain, big data, and cloud computing are all key development directions in the future. A valuation of US$1 billion is not too much!
Let’s talk about Mobao Pay. Although it lost more than one billion this year, its 5% market share is worth a valuation of US$2 billion, right?
Leech Financial currently claims a valuation of US$45 billion, more than half of which is supported by its payment business, and payment income also accounts for the main source of income.
The valuation of Alipay at US$30 billion is about the same number. Our market size is almost 1/15 of it, so we can get a valuation of US$2 billion.
Ruixiang has also invested in two consumer installment companies, Miaofenfen and Lefenfen.
Miaofenqi announced this month that it had completed a US$100 million Series C financing, with a valuation exceeding US$500 million. Ruixiang currently holds 12.8% of its shares, worth over US$60 million.
Lefen’s US$100 million Series B financing led by DST has also been negotiated and will be in place soon, with a valuation of over US$500 million. Ruixiang holds 32% of its shares, valued at over US$160 million.
The two investments add up to US$220 million, and coupled with the Ruixiang Industry Mutual Win Fund, I think the overall valuation of Ruixiang is no less than US$9.32 billion."
Zhang Yida analyzed the valuation system of Ruixiang Group one by one for everyone.
Lin Zhenyang was a little dumbfounded, his face turned red, and he quietly approached Zhang Yida and said:
"Then according to your calculation, isn't my 6.67% stake worth more than $600 million?
I am also a four billion brother?"
The meme "Four Billion Brother" was spread by everyone in the first half of the year when there was a rumor in the school that Ruixiang's valuation exceeded 1 billion, and Zhang Yida held 60% of the shares and was worth over 600 million US dollars, which is 4 billion yuan.
"No matter how high the value is, it is still rich on paper." Zhang Yida looked at Lin Zhenyang, shook his head and smiled.
The other investors didn't say anything, they were all reviewing what Zhang Yida just said.
Is $9.32 billion overvalued? No.
The valuation of each business unit is supported by data or references.
"Can Penguin accept the valuation of more than 9 billion US dollars?" Xu Xiaoming was also shocked and asked without confidence.
"Then I can't tell. Anyway, I will meet them in two days. You should also participate together!"
Zhang Yidahun said nonchalantly, "This valuation is far from overvalued. In the previous life, Leech Financial Services Group had a PE of 100 times. Didn't investors also pay for it? As long as there is a fast enough growth rate and a broad enough track, the story concept can continue to be told."
The other investors didn't say anything. They were probably frightened by the rapid growth of Ruixiang. They probably didn't want to cash out their shares now.
"If there is to be a C round of financing, Blackshirt Capital will participate in the investment, and the valuation will be more than 9 billion US dollars. We agree."
Shen Beipeng spoke. Ruixiang's rapid growth made him frightened and excited at the same time. This was a golden phoenix that he must hold on to.
"Temasek also agrees with the valuation of US$9.32 billion. If it is to carry out Series C financing, we will continue to invest."
Li Hengbo said grandly that this amount of money is just a splash of water for a national sovereign wealth management fund. Now that Black Shirt is following the investment and the giant Penguin is also entering the market, additional investment is necessary!
Other investors have also reacted and expressed their agreement with this valuation, and they will have to participate in the C round of financing.
This makes Zhang Yida very passive. Seeing this, he doesn't want to get out of the car. Then the old stocks can't be sold, right?
Moreover, all institutions chose to participate in the investment, and the only ones whose shares were diluted were himself and Lin Zhenyang...
After the meeting, Lin Zhenyang kept lingering there and didn't want to leave. Zhang Yida asked:
"What's the matter?"
"I want to... cash out some shares!" Lin Zhenyang said a little embarrassed.
Zhang Yida thought it was a big deal, but it turned out to be nothing more than a trivial matter. He joked:
"Are you busy marrying a wife or buying a luxury car? You can cash out part of it, but don't overdo it. I'm afraid you'll regret it in the future."
"I own 6.67% of the shares, so just give me a fraction, 0.67%." Lin Zhenyang shook his head like a rattle. He was not stupid, so he naturally knew that Ruixiang's potential had not yet been unleashed.
As the president, he is very aware of Ruixiang's operations.
Businesses such as Mung Bean Credit, Hantai Fund, Toulonghui Wallet, and IOUs are now gaining momentum. Together with the already profitable businesses, Ruixiang's net profit will remain at least US$500 million in the next year or two.
By then, several cutting-edge technologies will have almost produced results, and Mobao Pay will have a 10% market share, and Ruixiang will be valued at at least US$20 billion.
If you wait another year or two, the value of your shares may double or triple.
But Lin Zhenyang can't wait any longer. He is in urgent need of money to improve his life.
"I'm getting married!" Lin Zhenyang confessed.
"Pfft!" Zhang Yida was drinking water, but a mouthful of water spurted out, he winked and said:
"Did anyone get killed?"
Lin Zhenyang was a little shy and stammered:
"Forget it...let's do it!"
Seeing him like this, Zhang Yida smiled heartlessly and said after a while:
"Okay! Just think about it carefully. I support your decision!"
Lin Zhenyang scratched his head and said:
"After all, I am no longer alone, and I have to think about my family.
Xiaomo chose me, a poor boy, without any hesitation, and did not flinch in the face of family pressure.
This time, I will definitely give her a grand wedding!"
Zhang Yida nodded. He knew Xiaomo. He was in the same class as Lin Zhenyang and was also a disciple of the big courtyard. His relatives all worked in ministries. His family background was very good!
In comparison, Lin Zhenyang's family, an ordinary citizen's family, is a bit out of place.
In their previous lives, there was great resistance to their relationship.
It was not until Lin Zhenyang graduated and entered an investment bank and was promoted to VP vice president that Xiaomo's parents slowly accepted him.
Anyway, the two of them were not married in the previous life until 2019. In this life, I have changed Lin Zhenyang’s destiny! Let them achieve perfection in advance!
The merits are immeasurable!
He also saved a little life, which is better than building a seven-level pagoda!
Zhang Yida smiled and said:
"Congratulations then! Sister Xiaomo and her family haven't put any pressure on you, right?"
Lin Zhenyang shook his head and said, "No! Her parents' sense of me has changed a lot now!"
Having said this, he patted Zhang Yida on the shoulder and said sincerely: "I still have to thank you for taking me to start a business together. Otherwise, I don't know if I can still be with Xiaomo?"
"Why are you so sensational while talking!" Zhang Yida looked at Lin Zhenyang, whose eyes were red, and he felt that Lin Zhenyang had suffered more difficulties than he imagined!
…
"The pre-money valuation is US$9.32 billion! Haha, we Penguins are being taken advantage of!"
Liu Zhiping threw the document handed over by Ren Yu on the table and sneered.
"There is a certain bubble! But it is generally reliable." Ren Yu thought about it for a while and still felt that Ruixiang has huge potential and is a good investment target that should not be missed.
Liu Zhiping was born in 1973. When he was an executive director of Goldman Sachs Asia, he promoted the listing of Penguin and met Ponima. Ponima appreciated his talent, gave him shares and a high salary, and invited him to Penguin as its president.
Now, his status in Penguin can be regarded as the second-in-command below one person and above ten thousand people.
He holds about 0.5% of Penguin's shares, and his annual salary is more than 200 million yuan (mostly equity awards). He is worth more than 10 billion yuan, and he can be regarded as a working emperor.
Liu Zhiping is a very rational person. He just heard the quotation of more than 9 billion US dollars, and it only took a moment for him to become angry.
Now that my mind has returned to rationality, I have also taken into account that Ren Yu is also a very talented person. He will not randomly fire cannons. If he is said to be worth more than 9 billion US dollars, he is probably on target!
So Liu Zhiping looked at Ren Yu and said calmly:
"Then tell me! What's the value?"
Ren Yu thought for a moment and began to say:
“Ruixiang currently has nearly 200 million registered users, which can be said to be the second largest Internet financial traffic portal after Leech Financial Services.
Their business layout is also very complete, including finance, accounting, credit cards, loans, wealth management, funds, insurance... basically achieving full financial coverage.
In terms of cutting-edge technology, considerable achievements have also been made in fields such as AI, blockchain, cloud computing, and big data.
The most important thing is mobile payment. They rank fourth with a market share of about 5%, second only to Paybay, Lakala, and our Tenpay.
Lakala's main focus is on POS machines, and it will be a matter of time before Mobao Pay surpasses them.
I judge that in the next 1-2 years, the industry will have a three-legged structure.
The payout is first, we are second, and Mobao is third.
Winning them over, the second and the third will fight against the first!"
"Then have you ever heard of the story of the number one and number two fighting and beating the third child to death?"
Liu Zhiping looked at Ren Yu jokingly, saying that he couldn't convince him.
"Ruixiang Group, excluding cutting-edge technology research and development expenses and mobile payment user subsidies, has a net profit of close to US$200 million."
Ren Yu believes that Ruixiang's current valuation of US$8-9 billion is relatively reasonable, and it is highly likely that its future valuation will reach US$20 billion.
Penguin's investment in Ruixiang can not only conquer a potentially strong enemy, but also unite with Ruixiang to jointly check and balance Leech Financial Services.
Even if it cannot defeat Leech Financial Services Group, Ruixiang will stick to the current slow development of the industry, and there will be no problem that the investment will double or triple in value in the next one or two years.
"Looking at the information, Ruixiang Group has only been established for a little over a year, right? The founder, Zhang Yida, is not even 20 years old?"
When Liu Zhiping heard Ren Yu say that Ruixiang had a net profit of nearly US$200 million, he was slightly surprised and began to look through the information.
In his opinion, Ruixiang has a certain amount of revenue and profit, which means it is not entirely a bubble. Even if it is not worth US$9 billion, it should still have certain investment value. So he began to study the information.
"Yes, it was only established in October last year. Zhang Yida is only 19 years old and still in his sophomore year." Ren Yu replied. After finishing his answer, he stopped talking and quietly waited for Liu Zhiping's reply.
After reading for almost half an hour, Liu Zhiping raised his head, moved his eyes from the document to Ren Yu's face, and raised his mouth slightly: