(Yicai Global) June 19 -- Foxconn Industrial Internet hit another low today as the company’s shares continue downward trend.
It closed at CNY20.32 (USD3.13) per share today. The company’s stock price has continued to sink for three consecutive trading days. It comes after hitting daily upper limits for four trading days following its debut on June 8.
Foxconn Industrial’s current market value has plunged to CNY400.2 billion from the highest CNY519.2 billion, with the current price-to-earnings, or P/E, ratio being about 25 times.
Compared with the first listed unicorn WuXi AppTec, which has sparked a buying frenzy and hit daily upper limit for 16 consecutive trading days after going public on May 8, Foxconn Industrial saw its stock price plummeted recently.
This may indicate that the hype of the unicorn concept is gradually cooling down as such enterprises successively go public on China’s A-share market.
The weighted average P/E ratio for the electronic equipment and service industry in the A-share market is approximately 40 times. Based on this, the total market value of the Foxconn Industrial would reach over CNY600 billion, several institutions estimated before its listing.
Foxconn Industrial could have been a valuable stock if there weren’t some unicorns lining up for the upcoming Chinese Depositary Receipt, CDR, scheme, analysts said.
CDR is an ambitious attempt to rejuvenate the Chinese mainland market since it enables overseas-listed tech giants to also trade A-shares and encourages public offerings by tech and internet innovators. The alternative listing route skirts around regulatory barriers such as minimum profit requirements and restrictions on dual-class shares.
If Foxconn Industrial is regarded as a manufacturing company, the P/E ratio of 25 times is by no means low, a broker previously told China Times, a Taiwanese daily.
Editor: Mevlut Katik