Alibaba.com Blows Smoke With HiChina Spin-Off Plan 阿里巴巴网络分拆万网放烟幕弹

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Alibaba.com’s (HKEx: 1688) new announcement that it may spin off HiChina, its Internet infrastructure service provider that it acquired just 2 years ago, has all the signs of valuation envy from an industry leader that feels unappreciated by investors. (English article) That’s the only reason I can give for the strange timing of this announcement, coming at the height of one of the worst IPO markets in the last 2 years and at a time when US-listed China companies are particularly out of favor. Let’s look at the numbers: Alibaba.com, easily China’s biggest B2B e-commerce site, purchased HiChina in 2009 for a price that gave it a valuation at that time of around $100 million. Now, an unnamed source being quoted by the Wall Street Journal is saying the IPO could value the company at up to $500 million, or 5 times what Alibaba.com paid for it. I’m sure Alibaba has brought some synergies to the company since the purchase and also invested more money in it, but a 400 percent increase in value in just 2 years seems a bit too rich to me. More likely, Alibaba.com is feeling underappreciated by investors, who have dumped its shares in recent months causing it to lose nearly half its value since July, with a current market cap of around $4 billion. That’s easily the lowest market cap for any category leader in China’s Internet space. Leading web portal Sina (Nasdaq: SINA) has a current market cap of $5.4 billion, while Baidu (Nasdaq: BIDU) and Tencent (HKEx: 700), the leading search engine and online game operator, boast sky-high valuations of $43 billion and $37 billion, respectively. Alibaba.com’s parent company, Alibaba Group, is also no doubt feeling some pressure to show stronger valuations from its units after investors purchased a stake in the parent company last week that valued it at a whopping $32 billion. (previous post) Considering that Alibaba.com is probably the parent group’s most valuable asset and worth just $4 billion, I’m not sure where the other $28 billion of that sky-high valuation is coming from. All that said, this HiChina spin-off plan looks like mostly a distraction to divert attention away from Alibaba’s industry-lagging valuations.

Bottom line: Alibaba.com’s plan to spin off its HiChina infrastructure services unit is a ploy to generate excitement to boost its own industry-trailing valuation.

阿里巴巴网络有限公司（Alibaba.com）(1688.HK)日前发布公告称，公司拟分拆两年前收购的互联网基础设施服务提供商万网（HiChina），後者将赴美上市，其估值颇令人眼红。这是我能想到此时发布公告的唯一原因。目前是两年来首次公开募股（IPO）市场最糟时刻之一，赴美上市的中国企业尤其不受投资者青睐。让我们来看看相关数据。Alibaba.com是中国最大的B2B电子商务网站，2009年以5.4亿元收购万网股权。《华尔街日报》援引一名消息人士的说法称，万网上市时的市值或高达5亿美元，是阿里巴巴网络收购价的五倍。我相信，收购万网後，阿里巴巴为其带来了一些协同效应，也对其投入了更多资金，但仅两年价值就增长4倍，我认为，这样的涨幅有点过高。更可能的情况是，阿里巴巴网络觉得不被投资者看好。投资者近几个月抛售其股票，致使该公司市值自7月来缩水近一半，目前约为40亿美元。在中国互联网领域，对于一个领军企业来说，这样的市值非常低。门户网站新浪(SINA.O)目前市值为54亿美元，百度(BIDU.O)及腾讯(0700.HK)的市值分别为430亿美元和370亿美元。阿里巴巴网络母公司–阿里巴巴集团也面临压力。多家投资机构上周投资阿里巴巴集团，促使其市值高达320亿美元。考虑到阿里巴巴网络可能是该集团最有价值的资产，但其市值仅为40亿美元，我不知道阿里巴巴集团高得离谱的市值从何而来。总而言之，分拆万网的计划看似多半是为了转移投资者对阿里巴巴网络估值的关注。

一句话：阿里巴巴网络有限公司计划分拆万网，目的是为了提升公司落後于行业的估值。

Related postings 相关文章:

◙ More Internet Froth in Alibaba Valuation, Dangdang Price War 阿里巴巴估值奇高凸显网络泡沫

◙ Taobao Mall Drums Up Hype in IPO Run-Up 淘宝商城开放或为IPO造势

◙ Yahoo: A Good Time to Break From Alibaba? 雅虎与阿里巴巴分手时机还不成熟

News Digest: September 27, 2011

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The following press releases and media reports about Chinese companies were carried on September 27. To view a full article or story, click on the link next to the headline.

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◙ Sinohydro Cuts IPO Size as Weak Market Hits Demand (English article)

◙ 7 Days Group (Nasdaq: SVN) Holdings Limited Announces COO Resignation (PRNewswire)

◙ Giant Interactive (NYSE: GA) Announces New Share Repurchase Program (PRNewswire)

◙ Renren (NYSE: RENN) Announces Acquisition of Online Video Site 56.com (PRNewswire)

◙ AutoChina (Nasdaq: AUTC) Announces Shareholder Letter On IR Website (Businesswire)

Foreign Spending Spree Augers Woes for China Car Makers 外国车企大举投资中国 本土车企倍感压力

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Despite facing a sharp slowdown in the domestic auto market, foreign car makers are showing no signs of slowing down their investment in China — a trend that looks worrisome for big domestic names that are no doubt being forced to curb spending. In the latest development on that front, Chinese media are reporting that Germany’s Volkswagen (Frankfurt: VOWG), China’s largest auto brand with 13 percent of the market, has decided to boost its already sizable investment plan for China, now aiming to spend $19 billion from 2012 to 2016 from a previous target of $14.3 billion from 2011 to 2015. (English article) That expanded mega-investment plan comes as Ford (NYSE: F) and General Motors (NYSE: GM) have also earmarked major new dollars to boost their China investments, including recent symbolic commitments by both companies to boost their electric car development in the country. (previous post; Ford article) These kind of sharp spending increases during a downcycle reflect not only the longer-term vision that the foreign auto giants hold out for China, but also simply the fact that they have much better financial resources than their Chinese counterparts and realize that competition will only become more fierce as the market slows. By comparison, Chinese car makers are more likely to rein in their spending during the downturn, causing them to fall further and further behind their foreign rivals that already enjoy an edge in terms of consumer perceptions and product quality. All this bodes poorly for domestic firms like BYD (HKEx: 1211; Shenzhen: 002594), Chery, Geely (HKEx: 165) and BAIC, which have already seen their sales drop sharply and could see their position erode further amid aggressive foreign spending. I wouldn’t expect to see any of these car makers fail, as all enjoy strong support from local governments; but that said, look for their market share to fall sharply in the next 2 years until many become insignificant players in their own home market.

Bottom line: Aggressive spending by foreign car makers like VW and GM in China will cause domestic players to lose considerable market share during the current downturn.

尽管国内汽车市场大幅放缓，但外国汽车厂商却未显露出放缓对华投资的迹象，这一趋势似乎让很多不得不削减开支的国内大车企忧心不已。中国媒体近日报导称，德国大众汽车<VOWG_p.DE>决定加大对华投资，计划在2012-2016期间向中国投资190亿美元。该公司原计划在2011-2015年期间向中国投资143亿美元。大众汽车在中国拥有13%的市场份额。福特汽车<FN>和通用汽车<GM.N>也计划增加对华投资，近期两公司承诺将在华推进电动车开发。这种在市场低迷期间大幅增加投资的举动不仅反映出外国汽车巨头对中国市场持有的一种长远眼光，也反映出他们拥有优於中国车企的金融资源，且意识到当市场放缓时，竞争只会变得愈发激烈。与之形成鲜明对比的是，中国汽车厂商在经济低迷期间更可能会控制开支，造成他们更加落後于外国竞争对手。外国汽车厂商在消费者认可度和产品质量方面优於国内汽车厂商。所有这些对比亚迪<1211.HK><002594.SZ>、奇瑞汽车、吉利汽车<0175.HK>、北汽控股(BAIC)等国内企业都不是好消息。上述国内汽车厂商的销量已大幅下滑，面对外国车企的大举投资，其市场份额可能进一步受损。我不认为当中的任何一家企业会破产，因为这些企业都受到地方政府的大力支持，但我要说，他们的市场份额料将会在未来两年内大幅下滑，最终很多车企在国内市场中将无足轻重。

一句话：大众和通用汽车等外国汽车厂商大举投资中国将使国内汽车厂商的市场份额在目前低迷的环境中大幅下滑。

Related postings 相关文章:

◙ Two Generals Team Up in Latest EV Drive

◙ China Carmakers Lose a BRIC in Export Drive 中国汽车厂商的出口机会将逐步缩窄

◙ Message to Saab: Don’t Count on China 萨博不应指望中国注资

China Offers Up Premier IPOs to Revive Markets 大企业沪港上市 政府借机重燃沪港生机

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Despite one of the worst IPO markets in the last 2 years, we’re seeing a sudden spurt of major Chinese state-run firms suddenly rush to make new listings in Shanghai and Hong Kong, in what looks like a behind-the-scenes campaign by Beijing to try and halt a recent skid in its stock markets. In the latest development of this new mega-IPO parade, Sinohydra Group, the nation’s biggest hydropower company and builder of the 3 Gorges Dam, is planning to raise $2.6 billion in a Shanghai IPO (English article); and China Communications Construction, a leading construction firm, is planning to raise $3.1 billion, also in a Shanghai offering. (English article) News of these two mega-offerings follows similar announcements last week by Shanghai-listed CITIC Securities (Shanghai: 600030), China’s largest brokerage, and Sany Heavy Industry (Shanghai: 600031), a top maker of industrial equipment, which said they planned to make Hong Kong IPOs worth $2 billion and $3.3 billion, respectively. Some quick math will show that these 4 offerings combined would suddenly flood Shanghai and Hong Kong with more than $10 billion in new shares, drawing away investment dollars from other firms in an already weak market. But at the same time, the offering of 4 such premier names all around the same time looks very suspicious to me, as all should be very attractive to investors. That leads me to suspect that this exercise and its timing is being quietly orchestrated by central government and stock market officials in a carefully choreographed plan to try and breathe some life back into these two sputtering markets, especially a Shanghai market that is trading near its 52-week low and has lost nearly a quarter of its value from its peak earlier this year. I have to applaud Beijing for its effort to try and bring back some excitement to the market, and also note that this kind of campaign could only happen in China, where many top firms still take their cues from Beijing. I would look for these attractive offerings to give the markets a short boost, but the downward trend will quickly come back unless global markets start to show some new life soon.

Bottom line: Beijing’s new campaign to bring some of its premier companies to market with new IPOs could provide a short lift for the sputtering Hong Kong and Shanghai markets.

尽管IPO市场处两年来最遭时期，但近来中国国有大型企业突然爆发，积极准备沪、港上市，看起来似乎是政府想要幕後使力，竭力想阻止股市下滑。比如，近来中国头号水电企业–中国水利水电拟A股IPO，计划募资26亿美元；中国交通建设亦计划通过上海上市，募资31亿美元。另外，中国头号券商–中信证券<600030.SS>上周宣布宣布H股上市，计划募资20亿美元；中国工程机械制造公司–三一重工拟H股IPO，募资33亿美元。综合四起IPO，你会发现沪、港两市会突然涌出超100亿美元的新股，在市场本已非常疲软的情况下，吸引走其他企业的投资。但同时，四家超大企业约同时进行IPO看起来令人生疑，四起IPO对投资者应该都有很大吸引力。这让我怀疑，所有这一切是否都是政府与股市官员刻意安排，为两个持续疲软的市场注入一些生机与活力，尤其是沪综指交投点位接近52周低位，较今年稍早高点缩水近四分之一。政府竭力为市场增添生机，这点我不得不拍手称赞，但要指出的一点是，这种事情只会在中国发生，因很多大国企仍听从政府的指挥。这些企业上市短期会提振股市，但是，全球市场如不重现生机，那麽沪港两市很快会回归颓势。

一句话：中国政府推动其金牌大企业上市，可能为疲软不堪的沪港股市提供短期支撑。

Related postings 相关文章:

◙ Tidbits: Sany Heavy, Yingli, WineNice

◙ CITIC Securities $2 Bln IPO Looks Good, With Potential to Jumpstart HK 中信证券香港IPO值得期待

◙ Securities Regulator Seizes on US Confidence Crisis 中国证监会或介入企业海外上市

LDK Bonds: Still Some Value in Solar

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There’s some interesting data out from LDK Solar (NYSE: LDK), the weakest of the major solar firms, that seems to show the sputtering sector may still have some energy left, even as it grapples with its worst-ever downturn. According to a new announcement by LDK, the company was able to buy back a combined $20 million worth of its debt due in 2013 and 2014 at what I consider to be a relatively modest discount of about 25 percent, or about 75 cents on the dollar. One of the bonds, which it bought for just a 23 percent discount, has a yield of a hefty 10 percent, which may explain the relatively modest discount for a company that constantly seems to be flirting with insolvency. It’s hard to read too much into these numbers, as the size of the buy-back isn’t too big and it’s possible the sale was manipulated to make the discount seem less severe than it really should have been. But if the size of these discounts are even close to market rates, what they tell me is that investors expect struggling bigger names like LDK to get purchased in an upcoming industry consolidation, allowing investors to recoup some of their money, rather than being forced out of business completely. That’s an important distinction for solar energy investors, who have been losing lots of money recently as a steady stream of US-based companies like Solydra file for bankruptcy, meaning stock and bond holders will get back little if any of their investment in those companies. My guess is that the market realizes that China, after supporting its solar sector for years with generous subsidies and other support, will be reluctant to let any of its big players fail, and instead will prop them up with temporary support and then quietly engineer takeovers to salvage as much of their operations as possible and protect investors. If that’s the case, this group of China-based solar players, with strong backing from Beijing, may still yet have some energy and be worth the investment.

Bottom line: A relatively mild discount in a recent deal involving bonds weak solar player LDK indicates investors believe Beijing won’t allow any of these players to fail.

Related postings 相关文章:

◙ Tech, Environmental Issues Cast New Clouds Over Solar Firms

◙ US Solar Probe: Get Ready for China Bashing 美国太阳能调查：炮轰中国大潮的前奏

◙ LDK: An Exploding Star for a Sector in Turmoil

News Digest: September 24-26, 2011

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The following press releases and media reports about Chinese companies were carried on September 24-26. To view a full article or story, click on the link next to the headline.

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◙ China Communications Construction eyes $3.1 billion Shanghai IPO (English article)

◙ Lenovo (HKEx: 992) Lowers Price on A1 Tablet PC to 1,000 Yuan, May Start Price War (Chinese article)

◙ Dangdang (NYSE: DANG) Announces Fulfillment Developments, New Head of Technology (PRNewswire)

◙ ZTE (HKEx: 763; Shenzhen: 000063) Officially Launches Skate 4.3-Inch Smartphone Globally (Businesswire)

◙ Silvercorp (NYSE: SVM) Sues Chinastockwatch.com Alleging Attempt to Drive Down Shares (English article)

More Internet Froth in Alibaba Valuation, Dangdang Price War 阿里巴巴估值奇高凸显网络泡沫

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The latest signs of froth in China’s bulging Internet bubble are popping up in several places this week, with new investors in e-commerce leader Alibaba Group boasting a ridiculously high valuation for the company, while the latest price war by Dangdang (NYSE: DANG) underscores the overheated competition. And in perhaps the most revealing of the new developments, even state-owned dinosaur CCTV is jumping on the e-commerce bandwagon, with the launch of its CNTV Mall. (English article) Let’s begin with Alibaba, which has received new investment from a group of blue-chip investors including Singapore’s Temasek, private equity firm Silver Lake Partners and Russia’s Digital Sky Technologies (DST), which are boasting their investment values the company at as much as $32 billion. (English article) This sounds ridiculous for a company that analysts were estimating was worth around $10 billion just months ago, and is reminiscent of DST’s estimate earlier this year shortly after it and others invested $1.5 billion in e-commerce site 360Buy that that company was worth up to $10 billion. (previous post) I wouldn’t be surprised if DST was the one giving the $32 billion figure for Alibaba, and would advise DST’s chief Yuri Milner to take a course in remedial finance before throwing out more such overinflated numbers in the future. In terms of Dangdang, the company is reportedly pressuring consumer electronics companies that sell on its site to lower their prices below those of comparable products on 360Buy, in a campaign that a Dangdang insider says has been named “operation decapitation”. (English article) The name of the campaign itself reflects the hyper competition that has appeared in China’s e-commerce space following the infusion of billions of dollars in new investment over the past year. But the biggest sign of a bubble in my view is the arrival of China Central Television, better known as CCTV, to the market. You know that when a slow-moving dinosaur like CCTV finally joins the game, the party is almost over.

Bottom line: A sky-high new valuation for Alibaba Group and the latest cut-throat campaign from Dangdang are the latest signs of a looming burst for China’s Internet bubble.

本周种种迹象表明，中国互联网泡沫正在成形。阿里巴巴市值被投资者吹捧到高得离谱，当当网(DANG.N)近期打响价格战凸显行业竞争白热化。最能说明问题的莫过于CCTV也进军电子商务领域，推出中国网络电视台商城（CNTV Mall）。首先，来谈谈阿里巴巴。该集团近期获得多家蓝筹投资机构投资，包括新加坡淡马锡控股、私募公司Silver Lake Partners及俄罗斯风投公司数字天空科技（DST）。这些机构称，他们对阿里巴巴的投资，促使该公司市值高达320亿美元。这听起来十分荒谬，因为仅在数月前，分析师估算的阿里巴巴市值仅为100亿美元左右。这不禁让人想起今年早些时候，DST与沃尔玛和百度向京东商城投资15亿美元后不久，就对京东商城估值100亿美元。如果是DST提供阿里巴巴市值320亿美元的数据，我一点也不会感到惊讶，我会建议，DST执行长米尔纳（Yuri Milner）以後夸大这类数据前，应先学会补齐财务知识。有报导称，当当网正向其消费电子产品供应商施压，要求其售价应低于京东商城同类产品，当当网内部人士透露，此举被命名为“斩首行动”。这一名字本身就反映了中国电子商务行业竞争白热化的现状。该领域过去一年来获得了数十亿计美元的新注资。但我认为，中国互联网泡沫的最大迹象是CCTV进军该市场。要知道，像CCTV这样行动缓慢的庞然大物加入时，游戏就基本结束了。

一句话：对阿里巴巴集团估值过高，当当网启动“斩首行动”，这些都是中国互联网泡沫破裂的最新迹象。

Related postings 相关文章:

◙ Muddy Waters, Taobao Mall Wake Up to China E-commerce Hype

◙ 360Buy IPO: Let the Delays Begin 京东商城放缓IPO进程

◙ Wal-Mart Finds Bargain in China’s Internet Bubble

Unicom’s Sputtering 3G: Blame It On the Handsets 联通幡然醒悟 借低价手机扩张3G市场

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Despite receiving numerous advantages from Beijing in China’s fledgling 3G market, China Unicom (HKEx: 762; HKEx: CHU) has shown disappointingly slow progress in boosting its share in the space and now we may know why: a shortage of low-cost handsets. That’s what domestic media are reporting, with Unicom preparing to buy up to 8 million smartphones costing under 1,000 yuan, or about $150 each, in a bid to boost its share in the market. (Chinese article) A quick look at the numbers shows that Unicom has made little or no progress in terms of boosting its 3G market share in the last 4 months. It owned 30 percent of the market in April, compared to 45 percent for the nation’s dominant carrier China Mobile (HKEx: 941; NYSE: CHL) and 25 percent for China Telecom (HKEx: 728; NYSE: CHA). (previous post) Fast forward to August, when Unicom’s share remained stuck at 30 percent, while China Mobile’s dropped 2 percentage points to 43 percent, all of which was picked up by China Telecom, whose share rose to 27 percent. (English article) In my view, blaming its lack of progress on lack of low-cost handsets is a lame excuse. Unicom’s 3G network is technically superior to both of its rivals’, supported by a much wider array of handsets than those available to 3G subscribers of China Mobile or China Telecom. The fact that Unicom chose to focus on high-end customers in its 3G campaign, relying especially heavily on Apple’s (Nasdaq: AAPL) trendy but costly iPhone, shows a clear lack of foresight by the company, which should have realized that the vast majority of Chinese living outside the wealthiest cities like Beijing and Shanghai may not want to spend 3,000 yuan or more for 3G handsets. I applaud Unicom for finally realizing its mistake and moving to rectify it with a mass purchase of lower-cost phones. But such a fundamental miscalculation looks a bit worrisome, especially as Unicom’s technological advantage could end as soon as next year as China Mobile trials and prepares for the commercial launch of a solid 4G product and China Telecom continues its aggressive 3G promotion.

Bottom line: Unicom’s failure to anticipate demand for low-cost 3G handsets reflects a lack of vision, which will undermine the company’s longer term prospects.

在中国刚刚起步的3G市场，中国联通(0762.HK; CHU.N)从政府那儿得到数不清的好处，但它在提高市场份额方面却显出令人失望的迟缓，现在，我们或许已经知道其中缘由了：缺乏低成本手机。根据国内媒体报导，为扩大市场份额，联通准备采购800万部千元以下的智能手机。光看这一数字就知道，联通在过去四个月中几乎未能在抢占3G市场份额方面取得任何进展。今年4月，联通占有30%的3G市场份额，中国移动(0941.HK; CHL.N)和中国电信(CHA.N)分别为45%和25%。到了8月份，联通的市场份额未变，中国移动则下滑两个百分点，至43%，中国电信则升至27%。在我看来，将进展迟缓归咎于缺乏低成本手机是个非常蹩脚的借口。联通的3G网络在技术上要优于竞争对手，相比中国移动或中国电信的3G用户，联通提供了更多样化的手机选择。但联通选择把高端客户，特别是依赖苹果iPhone手机的人，作为其扩张3G市场的重点，这个事实只能说明联通缺乏远见。联通本应意识到，那些不在北京、上海等一线城市生活的广大中国民众或许不愿花3,000多块钱买个3G手机。联通总算能意识到错误，并通过大量采购低成本手机的亡羊补牢之举，令我感到庆幸。但这麽低级的一个判断失误着实令人担心，尤其考虑到联通的技术优势可能会最早在明年终结，届时中国移动或在明年尝试并准备推出商业化的4G产品，中国电信也会继续其3G网络的推广。

一句话：中国联通未能预见到低成本3G手机的巨大需求，说明缺乏远见，而这一缺陷将有损联通的长远前景。

Related postings 相关文章:

◙ China Mobile Turns Up 3G With New Handset Push 中国移动3G再发力

◙ Unicom Builds Legitimacy with Sina Tie-Up 中国联通联手新浪

◙  Unicom, China Telecom Come Nipping at China Mobile’s 3G Heels 中国联通和中国电信紧盯中国移动3G市场

Two Generals Team Up in Latest EV Drive

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There’s been a flurry of news on the electric vehicle (EV) front these last 2 days, as China enlists US heavyweights General Motors (NYSE: GM) and General Electric (NYSE: GE) to try and jumpstart the country’s sputtering drive to environmentally friendly cars. But despite the hype, the two latest initiatives look largely symbolic to me, and it’s hard to tell if either will have much impact. One deal will see GM and Chinese partner SAIC (Shanghai: 600104) step up their EV development, with GM making vague promises to transfer more of its cutting-edge EV technology to China as it prepares to import its state-of-the-art Chevy Volt on a trial basis. (English article) The second deal will see the two Generals, GM and GE, install charging stations in Shanghai on a very limited basis at GM’s China headquarters and in the pilot district of Jiading. (English article) The pair of announcements follow a similar, more interesting one last month, in which GE teamed up with US rental car giant Hertz and Chinese EV maker BYD (HKEx: 1211) in a drive to make EVs available on a rental basis with GE supplying necessary charging infrastructure and BYD supplying cars. (previous post) I applaud China for its steadfast determination push ahead with its EV drive, which it is trying to do by offering buying incentives and by coaxing big names like GE, GM and Hertz to provide the necessary infrastructure. But it’s clear from the reserved nature of all these announcements that the biggest piece of the equation — consumer demand — is still missing. The rental car concept being rolled out by Hertz is good, as it will allow consumers to test out EVs and feel more comfortable with them before making a purchase. Beijing needs to make more moves like this, including a broader public education program, to build up the necessary consumer confidence that even the most aggressive infrastructure-building program can’t provide. Without such confidence, China’s EV drive could sputter and die before it even gets started.

Bottom line: China’s latest EV initiatives involving GE and GM look largely symbolic, and instead Beijing should focus on building the necessary consumer confidence to make its EV program work.

Related postings 相关文章:

◙ Hertz, GE Give Jolt to BYD Electric Cars 赫兹新项目为比亚迪“加油

◙ Beijing Sends Mixed EV Signals 中国应推进电动车基础设施建设和宣传

◙ BYD Toots Electric Horn in Shenzhen 比亚迪在深圳奏响电动汽车号角

News Digest: September 23, 2011

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The following press releases and media reports about Chinese companies were carried on September 23. To view a full article or story, click on the link next to the headline.

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◙ Unicom (HKEx: 762) Buys 8 Mln 3G Smartphones to Ease Supply Shortage (Chinese article)

◙ Alibaba Said to Be Valued at $32 Billion as Temasek, DST Invest in Company (English article)

◙ Ctrip (Nasdaq: CTRP) Announces Plan to Repurchase Up to $15 Million in Shares (PRNewswire)

◙ SMG, Endemol Partner on TV Content Production (English article)

◙ Deadline Announced for Lead Plaintiffs in the Class Action Suit Against SinoTech Energy (Businesswire)

Acer Trips, Lenovo Next? 联想应避免重蹈宏基覆辙

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The folks at Lenovo (HKEx: 992) are surely celebrating, after the latest numbers showed it zoomed past sputtering Taiwanese PC maker Acer (Taipei: 2353) to take the spot as the world’s third largest PC seller in the second quarter. (Chinese article) But before they celebrate too much, I would advise Lenovo’s leaders to take a good look at what happened to Acer to avoid a similar fate of the former high-flyer. First let’s look at the numbers. According to iSuppli, Lenovo’s PC shipments soared 23 percent in the second quarter from a year earlier, giving it 12 percent of the world’s PC market. That was more than enough to lift it past Acer, whose shipments plummeted 20 percent to give it just over 10 percent of the global PC market. Acer’s story is relatively well known, as its low-price strategy to grab share in tough Western markets from better run rivals Dell (Nasdaq: DELL) and Hewlett Packard (NYSE: HPQ) ultimately backfired and drove the company’s bottom line into the red. Lenovo has seen its sales soar in large part due to its earlier decision to focus on emerging markets, drawing on expertise gained in its home in China where it controls more than a quarter of the market. But it has shown a worrisome tendency recently to buy dying Western computer makers, picking up Germany’s Medion (previous post) and taking over NEC’s (Tokyo: 6701) PC business in Japan (previous post), much the way Acer took over the dying Gateway brand in the US in 2007. Recent signals from Lenovo’s acquisition-happy Chairman Liu Chuanzhi indicated he was strongly considering a bid for HP’s PC business, which HP is trying to sel. But Liu later backed off and said Lenovo wouldn’t enter the race. If true, that would be a smart move for Lenovo, which should focus on integrating its Japanese and German acquisitions and building its emerging markets business to avoid following in Acer’s footsteps.

Bottom line: Lenovo needs to study the case of Acer and avoid overly aggressive ambitions in Western markets to avoid repeating Acer’s recent rapid fall from grace.

联想(0992.HK)员工一定在庆祝，公司第二季度超过宏基(2353.TW)成为全球第三大个人电脑（PC）厂商。但他们最好不要高兴过头，我建议，联想领导层应仔细审视宏基的经历，避免遭遇相同的命运。首先，来看看最新数据。市场研究公司iSuppli称，联想第二季度PC发货量同比增长23%，其全球市场份额增至12%。这使联想远远超过宏基，後者第二季度PC发货量下滑20%，全球市场份额仅略高于10%。宏基的故事相对广为人知。凭借低价策略，宏基从戴尔(DELL.O)和惠普(HPQ.N)手中抢得西方市场份额，但最终适得其反，导致宏基出现亏损。联想PC销量大涨，主要归因于早先侧重新兴市场的决策，并充分利用在国内积累的专业经验。联想占据国内PC市场逾四分之一份额。但联想收购德国Medion和日本NEC(6701.T)PC业务，这一趋势令人担忧，做法很像宏基2007年在美国收购濒临破产的Gateway。联想董事长柳传志稍早的讲话表明，有意竞购惠普打算出售的PC业务，但近期却打退堂鼓，称联想不会参与竞购。如果情况属实，可谓明智之举。联想应致力于整合上述两起并购，发展新兴市场业务，避免重蹈宏基的覆辙。

一句话：联想应以宏基为鉴，避免在西方市场过度扩张，再现宏基近期迅速下滑一幕。

Related postings 相关文章:

◙ Lenovo Sets Sights on Russia, Style 联想进军俄罗斯市场，研发时尚型PC

◙ Lenovo Considers Dangerous HP Computer Bid 联想应慎购惠普PC业务

◙ Lenovo Discovers the Right Formula a Little Too Late 联想再次“晚一步”