5 Jan

EVERYTHING YOU SHOULD KNOW ABOUT THE IPO OF THE CHINESE COMPANY

Huawei is a company founded in 1988 the telecommunications industry. Even if the company is best known for its smartphones and tablet PCs, earned the most money is in the business with corporate clients , mainly as a supplier of telecommunications companies. All German network operators use the services of the Chinese, for example, the expansion of fast LTE network . O2, the Group acquired all equal Field Service, which is responsible is etoro working in 2018 for network monitoring, debugging, and maintenance and servicing industry. Behind Ericson Huawei is regarded as number two among telecom equipment vendors.

Huawei shares buy

While investors can not buy Huawei shares even at DEGIRO. But very inexpensive competitors Apple.

So Huawei is a quiet giant. Because the products for end customers make up only a small part of the portfolio, the company is relatively unknown. It has about 150,000 employees , considerably more than, say, the car maker BMW. Even in Germany, a part of which works in Dusseldorf has European headquarters based in Nuremberg and a mobile operations center, in total there are in this country 16 locations with 1,600 employees.

Huawei is successful primarily as a supplier of telecommunications companies.

THE THREE AREAS

Its business is divided Huawei in three different areas , namely the consumer business, telecommunications companies and other Democorporate customers. For companies, the Group provides, for example routers, video conferencing solutions and cloud computing. Even hardware and software for the control of railways is an important line of business.

Routers also belong to the offer for private customers , but the company announced here mainly for smart phones and tablet PCs. Most devices run on Android, but the Group with the Ascend W1, a phone with Windows Phone on offer. By contrast, tablet PCs run exclusively with Android and answer to the name Mediapad.

Huawei shares from Shenzhen

In Shenzhen, near Hong Kong, Huawei has its headquarters. Photo: Flickr @ Tomislav Domes

The business with the telecommunication companies as mentioned Read in-depth plus500 review before start trading the largest area. For the uninitiated, abbreviations such as WDM / OTN to the edge, LTE-EPC or U2Net remain confusing at first, but Huawei, they are a great source of money.

Overall, Huawei has three divisions, in addition to the telecom companies nor other corporate and private clients.

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QUALITY PROFITS

Overall, Huawei in 2013 made about 40 billion US dollars in sales, about half as much as BMW. 3.5 billion after tax remained as the profit in the company’s treasury. So is return on sales slightly higher than the Bavarian carmaker. Since 2009, the salesincreased by more than 50 percent of the profit, however, has risen significantly weaker. That might be due to numerous investments. 2016, net income was already at 5.3 billion US dollars. So Huawei was able to increase its net profit compared to 2013 by about 50 percent. Sales are now 75.6 billion dollars. Compared to 2015, however, net profit rose only slightly by 0.4 percent. 2016, sales increased in all areas. However, specific figures for individual sectors does not point out the private company, which makes a deeper analysis Huawei heavy.

Huawei in Shenzhen Photo: Flickr @ Matt Wakeman

In Shenzhen not only Apple partner Foxconn has a great work, but also Huawei. As before, the majority of employees working here. Photo: Flickr @ Matt Wakeman

Although Huawei locations operates around the globe, most of the employees still working in Shenzhen , where the company has its headquarters. The city near Hong Kong is the headquarters of many companies, for example, the company Foxconn, which for Apple is active and other manufacturers as a contract manufacturer. Even in the late 1970s lived in the region around 30,000 people, then Shenzhen was because of its proximity to the former crown colony Hong Kong, a Special Economic Zone, 1990 alone had the actual city of 300,000 inhabitants, today it is as big as Munich, with around 1.3 million inhabitants. Including the surrounding land, which is often the case counts as in the People’s Republic of China to admistrativen city, Shenzhen has even 13 million inhabitants.

The operating margin declined in recent years, something, especially due to a significant increase in sales at slightly increasing profits.

HUAWEI SHARES OVERTAKEN APPLE AND SAMSUNG TO 2ND PLACE

In the summer of 2017 , Huawei has for the first time sold more smartphones than Apple. The company was thus a market share of slightly more like 10 percent, while  Apple sharesbelow 10 percent market share slipped. Undisputed number one is still Samsung, with a market share of around 20 percent. However, the distance of the Korean market leader melts more and more. In early January 2017, the Huawei had proclaimed chief in Las Vegas that he wants to bring the company at No. 2, what he so – has managed – at least in the short term.

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Remember, however, Huawei is unlikely to be able to keep on the 2nd place. Especially with the introduction of the iPhone X the direct competitor of the United States could significantly make up ground. What is missing Huawei is also a real bestseller. Although the Chinese sell a lot of smartphones, but no single device can be found in the top 10 of the world’s best-selling smartphones. Therefore, Huawei invested more and more money in establishing the brand. Although Huawei is also known in this country. But when a well known brand , like Apple or Samsung, to be perceived, it has not managed the companyWhat just to see to it that there is no seller. In addition, in the future more money will flow into various distribution channels.

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WHERE IS THE INITIAL PUBLIC OFFERING?

deposit guaranteeFrom an initial public offering since 2012 at the latest is always the question. If that company is now nobody knows. It is certain that founder and CEO Ren Zhengfei a large part of the shares has. However, these shares are not traded on the open market, bringing investors from Germany can not buy Huawei shares. Most investment companies could participate in see the IQ Option rating the company under certain circumstances. Forbes ranks in why the 200 richest Chinese. His estimated fortune of 120 million would, however, represent only a small portion of the goodwill.

Some critics accuse the company of being too closely tied in with the Chinese government. In the US, it is therefore virtually excluded from public contracts. But real evidence does not exist for it, according to Ren Zhengfei the ratio to peak in Beijing is the same as that of a New Zealand company with the government in Wellington.

Should the company go with Huawei shares on the stock market, it would have far more information than previously published. Talks with investment banks about a public offeringis said to have already given concrete plans do not exist.

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Whether the stock also a lucrative investment would also depend on the price. The company is healthy, has little debt and with China as an emerging market country. But the legal security in the People’s Republic is still lower than in Western Europe, the USA or the “other China”, the Republic of China on Taiwan.