Rebirth of Rural Literary Life

Chapter 693 Must teach red flags to plant all over the world

In later generations, even if someone has not seen the bronze bull statue on Wall Street, they should have heard of it.

The Mercedes-Benz He Ping and the others took just passed the Copper Bull. The Copper Bull statue has always been one of the most important symbols of American capitalism and one of the must-see attractions for many tourists.

This copper bull statue was designed by Italian artist Di Modica. The copper bull is nearly 5 meters long and weighs 6300 kilograms. Countless tourists who come to visit will choose to take photos with the copper bull.

But the copper bull was actually erected outside the New York Stock Exchange in 1989, and the Americans declared it a symbol of "the strength and courage of the American people."

Seeing the Tongniu, He Ping and the others' destination was approaching.

New York in this era represents the most prosperous city in the world, and Wall Street is the leader among them. The skyscrapers on both sides of the street are towering, making the narrow street appear extremely narrow.

The Mercedes-Benz drove to 36 Wall Street and stopped, and He Ping and others, led by Wang Kangmao, walked into the office building, which was the office of First Boston Securities Company.

To use an analogy, a brokerage is somewhat similar to a real estate agency.

The investment banking department of a securities firm is responsible for the primary market. They are responsible for helping companies build companies that meet the listing requirements, and then get them listed on the exchange. They earn intermediary fees from it.

Today Wang Kangmao led He Ping and the others to see Rodin Elton, an executive director of the investment banking department of First Boston.

Through the recent year of study, He Ping has a certain understanding of brokerage firms and the securities market.

Roles like Rodin Elton belong to the backbone of the investment banking department of securities companies, because they are responsible for the contracting and contracting positions of investment banks.

To put it bluntly, it belongs to Lahuo.

Most of the business in the investment banking department is recruited by these people, such as corporate IPO, equity financing, debt financing, etc.

Don't look at the title of executive director on Rodin Elton's head, but in fact he is only equivalent to a middle-level employee of the company. This is a kind of blindfold for many brokerages.

There are analysts, project managers, etc. all kinds of sayings about contracting the lowest-level positions. The most exaggerated one is Morgan Stanley, who call these employees investment bankers.

If you don't know how to do it, you can be bluffed by this name alone.

According to Wang Kangmao, the level of executive director of Rodin Elton should belong to the middle level of the investment banking department. According to the level, it can be divided into managing director, executive director, and business director.

Wang Kangmao introduced He Ping while walking, and they soon met Rodin Elton, a smart and capable white man in his 30s.

After a brief introduction and greetings from both sides, the topic entered.

Rodin Elton and Wang Kangmao met at an event. At that time, his deepest impression of Wang Kangmao, a yellow-skinned Chinese, was his outstanding eloquence.

Wang Kangmao was able to find him, which surprised him.

Because Wang Kangmao is an analyst at Merrill Lynch, there is no reason to push his business outside.

But after he finished understanding the situation, he finally understood why Wang Kangmao came to him.

It turned out that Wang Kangmao was planning to find a listed underwriter for an agricultural and animal husbandry company from the far east, but Merrill Lynch was full of arrogance and was unwilling to even give this company a chance to try.

Rodin Elton's political inclination is typical of the white left, and he is full of interest in this company from the East. If he can promote the successful listing of this company from a socialist country, it will definitely be a lot of money for him performance.

With this in mind, he accepted Wang Kangmao's invitation.

"Mr. He, I really didn't expect your English to be so good."

Rodin Elton, who is well versed in dealing with Orientals, came up with a rainbow fart first.

He Ping said thank you, "Mr. Elton, I think you already know a lot about Goodfarmer Group, so I won't go into details here. Let's get straight to the point. Our Goodfarmer Group intends to sell Group 15 % of the shares and plans to raise $8 million.”

"Chicken, you're so luscious!"

After hearing He Ping's words, Rodin Elton did some mental calculations, then turned his gaze to Wang Kangmao with a look of surprise on his face, "Wang, didn't you popularize some basic securities knowledge to Mr. He?"

Faced with Rodin Elton's somewhat impolite behavior, Wang Kangmao spread his hands. Even his compatriots felt that He Ping's idea was too crazy.

Seeing this, Rodan Elton had a clue in his mind, "Mr. He, I think you should learn more about the fundraising situation of companies listed on the New York Stock Exchange in recent years, as well as their industrial distribution. With all due respect, agricultural and animal husbandry companies It is a traditional industry, and it has always been a red ocean industry. According to your company’s financial report data I just learned, your company’s net profit last year was 1.74 million US dollars. You want to raise 15 million US dollars with 8% of the shares. Your company The price-to-earnings ratio will be [-] times, which is too high for an agricultural and animal husbandry company.”

As the saying goes, ask for a lot of money, and pay back the money when you land.Of course, He Ping knows that it is impossible for a company like agriculture and animal husbandry to get a price-earnings ratio of [-] to [-] times like the Internet companies of later generations, but he will not suffer a loss if he makes a price.

"Mr. Elton, I think you should fully consider the market potential, market share and product distribution shown by our company.

Now Goodfarmer Group firmly occupies the No.1 position in China's agricultural and animal husbandry industry. According to incomplete statistics, our products have a market share of as high as 60% in the Chinese market, and we have dozens of factories and breeding bases across the country. In the future, we will continue to New factories and breeding bases will be built continuously.

You must know that we are backed by an emerging economy with a huge population of 11 billion, and the industries we are involved in are closely related to the citizens. With the continuous development of China's economy, people's living standards continue to improve. This is a huge benefit for us Good Farmer Group.

You should have read our financial report. In the past 89 years, our group's revenue has doubled compared with the previous year. Isn't this enough to explain the potential of Good Farm Group?
More importantly, you should see that we are not only an agricultural and animal husbandry enterprise, but also scientific research, food, deep processing, and chemical industry. These are all our layouts in the deep cultivation of industries. Food alone occupied our group's total business last year. 38% of the revenue, which represents our unlimited potential in the food field and the success of the industrial layout.

You should not just regard Goodfarmer Group as a traditional agricultural and animal husbandry company, but you should regard us as an emerging leading enterprise in the industry.Now we are the largest feed production enterprise in China, the largest agricultural and animal husbandry enterprise in China, and one of the largest food enterprises in China.

If we can get this financing, then Goodfarmer Group is confident to become the largest agricultural and animal husbandry industry cluster in Asia in the future. What we want to do is not only to be the leader of Chinese agricultural and animal husbandry enterprises, but also to be a multinational company that can compete with the world. group.

We want to provide high-quality and indispensable upstream and downstream products of the agricultural industry chain to the world. "Profit for the cultivator and benefit for the eater" has always been our group's business philosophy. We are committed to building a world-class agricultural and animal husbandry enterprise.

And you, Mr. Elton, you will be the Bole of our Goodfarmer Group becoming a world-class agricultural and animal husbandry enterprise.Don't forget, we are from China, a world-class agricultural and animal husbandry enterprise born in this distant eastern socialist country.

You can imagine that with your help, we were successfully listed on the New York Stock Exchange. With the funds raised, we made a big splash in the Chinese market and entered the international market smoothly, becoming an agricultural company rooted in China and developing in the world. Pastoral Enterprise, isn't that dazzling enough? "

He Ping's long speech made Rodan Elton a little dazed. He smiled wryly, "Mr. He, I admit that you are a natural orator, and I am moved by what you said, but we have to consider the actual situation."

Lin Tingtao and Wen Zhaoming glanced at each other, Mr. He is Mr. He after all, as long as there is no one around to stop him when he is bragging, cows will fly in the sky.This Mr. Elton had an unbelievable face when he heard Mr. He said that he had raised 8 million US dollars, but after He Ping made his achievements, his performance before and after was completely different.

"The actual situation? What is the actual situation?"

"The highest market value of an agricultural and animal husbandry company listed on the New York Stock Exchange is only more than 200 billion US dollars, and he has businesses on five continents around the world, occupying 10% of the global market share. According to your requirements, the listing of Good Farm Group is estimated to reach 25 Yimeidao, why do you think Good Farm Group, an agricultural and animal husbandry company with only a small scale in China, has such a high market value?"

He Ping smiled, "Mr. Elton, let's not talk about the global market. I want you to understand a basic truth. Our Goodfarmer Group is the leading agricultural and animal husbandry enterprise in China. Do you know what this means? This is a Occupying a huge market of one-fifth of the world’s population, it has tremendous potential, not to mention the world, as long as Goodfarmer Group is deeply involved in the Chinese market, then our group has already occupied 20% of the global market.”

"Mr. He, the reason why you are able to occupy a leading position in China now is only because other international giants have not entered the Chinese market. Once they enter..."

Rodin Elton didn't continue talking, but He Ping understood what he meant, and he wasn't worried. Instead, he smiled calmly.

"Mr. Elton, I admit that we still have a certain gap with those international giants in terms of product development and technology accumulation. This is also the purpose of our raising funds in the international capital market. Only with more funds can we improve Faster and better development, and more intense competition with the opponents you will meet in the future, but you have overlooked several basic facts.

First, we are a local company. Whether it is national sentiment, brand awareness, or market leadership, we have certain advantages against international giants.

Second, the difference in product categories.I also know some of the major international giants. If we only look at the technical capabilities in the field of agriculture and animal husbandry, our Goodfarmer Group does not have an advantage.But they also do not have the advantages of our Goodfarmer Group in other fields, and there are actually not many agricultural and animal husbandry enterprises that can diversify and develop successfully.

Take the ham sausage brand of our group as an example. Goodfarmer ham sausage has become the absolute No.1 in this food category. You must know that for industries with low technology content like ham sausage, once we have established absolute brand advantages and channels Advantages and price advantages, it is difficult for opponents to surpass.

With the continuous development of China's economy in the future, our production, sales and revenue will increase tenfold and hundredfold. This is just one of the food businesses of our group.We also have the most well-known canned food brand in the country, and the top five milk brands in the country...

Mr. Elton, this means that I am a kind person. If I put it on other people, I can completely separate the well-developed business of the group and use it to go public after a few years of development.But I didn't do it, why?
Because in my plan, Goodfarmer Group is a global group company based on agriculture and animal husbandry, covering multiple industries such as food, biology, and chemical industry.If ten fingers are punched out, it is better to draw back and clench into a fist before punching out. "

Rodin Elton didn't have much contact with Chinese people, and Wang Kangmao was one of them. He always thought that Wang Kangmao was eloquent, but compared with the person in charge of the company in front of him, Wang Kangmao paled in comparison.

On the one hand, he felt that He Ping's "30 times price-earnings ratio" and "market value of US$52 billion" proposed by He Ping were unrealistic. On the other hand, he felt that He Ping's long-winded speeches had some truth. Goodfarmer Group accounted for one-fifth of the world. market, as long as it manages its own local market well, it does not even need to expand overseas, and it is enough to become a top agricultural and animal husbandry company in the world.

He shook his head, no, no, China is just a third world country that has just opened up for a short time, and no amount of population advantage can offset its own disadvantage of poverty.

It took Rodin Elton a long time to get out of the trap of He Ping's words, and he began to argue with He Ping.

The two were blushing and refused to give in to each other, which made Wang Kangmao and Lin Tingtao next to them tremble with fear, feeling that the next second they disagreed, they would start fighting.

After 10 minutes, the two finally calmed down and shook hands with smiles on their faces.

Of course, things like valuation and stock price cannot be decided by a simple confrontation between the two, but through this confrontation, both of them have reached the other's bottom line and reached a certain consensus.

Next is the communication between Wen Zhaoming and others and Rodin Elton's team.

Walking out of 36 Wall Street, He Ping was in a good mood.

During the debate with Rodin Elton, he had a rough idea of ​​the fundraising scale of Good Farm Group’s future listing. 8 million is not realistic, but from the attitude of Rodin Elton, a professional, it will not Where to go low.

Of course, this depends on whether it can pass the review of First Boston and the feedback from the market.

The Mercedes-Benz drove to Tongniu, and He Pingxing stopped the car when he arrived. He went to Tongniu and patted it.

Lin Tingtao and the others followed him, and they could all tell that He Ping was in a good mood.

He Pingping smiled and was full of pride.

"Next time I come here, I must teach the red flag to plant all over the world!"

(End of this chapter)