…in what was probably a rational first day performance after the Chinese stock market’s phenomenal rally.
Image credit: Roborock website.
On February 21, Roborock (688169:SH), a Xiaomi-backed tech firm, started trading officially on the Star market. The price started at CNY 271.12 per share, which is the highest issue price so far for this board, and had hit CNY 495 as of press time – a virtually uninterrupted 82.58% rise.
This is the first company in Xiaomi's supply chain on the Star Market. Before this, wearable-device firm Huami (HMI:NYSE) and Internet-of-things-enabled home products provider Viomi Technology (VIOT:NASDAQ) went public in the US successfully, both part of Xiaomi’s ecological chain.
Today, tech giant Xiaomi connects more and more users to each other and to services through cost-effective, diversified products and efficient marketing channels. A clear and vibrant ecological chain is gradually being built and many companies are joining up, following the company’s blueprint.
Across the entire Internet of Things (IoT) strategy, the core idea is "connection." First, between people and things, then between people, then finally reaching a big IoT era where everything is connected.
These companies are under the control of Xiaomi ’s unified quality control; in the meantime, leveraging Xiaomi ’s supply chain and credit endorsements, they are able to compress production costs in the initial stage and achieve mass sales through Xiaomi's platforms to grab market share.
Founded in 2014, Roborock is a smart appliance developer and manufacturer specializing in intelligent hardware design, R&D, production and sales of intelligent cleaning robots. It is also applying lidar technology and related algorithms on a large scale in the field of intelligent cleaning robots. According to its website, its main products include six types of smart cleaner, now with a price range from CNY 1,099 to CNY 2,700.
Now the share turnover ratio of Roborock is at 72.68%, which shows an implausibly strong liquidity, and the P/E ratio is 46.53. Apparently, investors want to see more.