It is estimated that Huawei’s market value could be around 128 billion dollars.
Despite US sanctions, Huawei developed its first 5G chip within three years and drew attention in the tech world by using this processor in its Mate 60 flagship series. The company, collaborating with SMIC (China’s largest foundry), focuses on producing 3nm chipsets using older DUV lithography machines. These developments brighten Huawei’s future and may increase the likelihood of the US tightening restrictions on Huawei and SMIC.
Huawei’s founder, Ren Zhengfei, had always dismissed the possibility of the company’s shares being publicly traded. However, Zhengfei noted that he would support an Initial Public Offering (IPO) if selling Huawei’s shares to raise funds was in line with China’s national interests. In a letter to Huawei staff in 2021, he wrote that Huawei could “gradually enter the market in the future.” Huawei’s former sub-brand Honor also announced IPO plans last month after being sold to a consortium for $15 billion in 2020.
Based on 2022 earnings, applying the same earnings multiplier (25x) as Apple’s traded shares, Huawei’s market value could be estimated at around $128 billion. However, according to Lenovo’s former Chief Technology Officer Ni Guangnan, Huawei could have been valued at $1.3 trillion in 2019. At that time, Apple had surpassed a market value of $1 trillion, implying Guangnan viewed Huawei as more valuable than Apple. Today, Apple’s market value stands at $3 trillion. If Huawei goes public, international investors are expected to show interest.
A Huawei IPO could be seen as a victory against US sanctions and a cause for major celebration in China. There are three stock exchanges in China: Shanghai, Beijing, and Shenzhen. Huawei’s IPO could help the company gain a stronger position internationally and create more impact in the technology industry.
Source: https://www.cioupdate.com.tr/teknoloji/mobilteknolojiler/huawe-apple/
