Despite the downturn in the overall economic environment, the Porsche IPO has received positive feedback from the market.

  On September 29, local time, Porsche (PAG911) officially landed on the Frankfurt Stock Exchange. After the opening, the stock price went up all the way, once nearly 87 euros per share.

As of press time, Porsche's share price is 83.24 euros per share, with a total market value of about 75.8 billion euros, surpassing Mercedes-Benz and BMW, and becoming the world's fifth-largest car company by market value after Tesla, Toyota, BYD, and Volkswagen.

  The Porsche IPO price reached 82.5 euros per share, the highest of the 76.5 to 82.5 euro range initially offered to investors.

The IPO is the second largest IPO in German history and the third largest in European history.

  After the bell rang, Porsche CEO Oliver Blume said in an interview with Bloomberg that Porsche's market demand has not declined due to the recession, because Porsche is well positioned and has a good plan for the next year's product portfolio.

  Shares of other luxury carmakers such as Ferrari and Aston Martin have been hit hard by turmoil in European stock markets this year amid questions about the timing of Porsche's IPO.

Bloom responded that Porsche had a very strong financial performance last year, so it chose this time for its IPO.

Strong performance, selling a car to earn 160,000 yuan

  The prospectus shows that in recent years, Porsche's revenue and profits have maintained a steady growth state.

  In the first half of this year, Porsche's global sales volume was 145,800 units, down 5% year-on-year, but its revenue and profit both achieved year-on-year growth; in the first half of this year, Porsche achieved sales revenue of 17.922 billion euros, an increase of 8% year-on-year; operating profit was 3.48 billion euros , a year-on-year increase of 24.64%; sales profit margin was 19.4%.

  From 2019 to 2021, Porsche's global sales were 280,800, 272,200, and 301,900; sales revenue were 28.515 billion euros, 28.695 billion euros, and 33.138 billion euros; operating profits were 3.862 billion euros and 4.177 billion euros, respectively , 5.314 billion euros; sales profit margins were 15.4%, 14.6%, 16%.

  It is worth noting that despite the poor external environment, Porsche's single-cycle profitability has increased.

In 2021, Porsche will earn an operating profit of 17,600 euros (about 122,100 yuan) for every car it sells. In the first half of this year, this figure increased to 23,900 euros (about 165,800 yuan).

  In the entire Volkswagen Group, Porsche's ability to make money is also very "playable".

  In terms of operating profit margin, the overall operating profit margin of the Volkswagen Group in the first half of this year was 10%, its Volkswagen brand was 8%, the Audi brand was 16.5%, Porsche was 19.4%, Bentley was 23.3%, and Lamborghini's profit margin was as high as 31.9% .

However, due to their high prices, Bentley and Lamborghini both sold less than 10,000 vehicles globally in the first half of the year, far from Porsche.

  It can be said that those with higher profit margins than Porsches do not sell as well as Porsches, and those that sell a lot are not as profitable as Porsches. This is why Porsches become the “Pearl of the Palm” of the Volkswagen Group.

In 2021, Porsche's sales will account for 3% of the Volkswagen Group's total sales of 8.6 million vehicles, but it will contribute nearly 30% of the Volkswagen Group's profits.

1 in 3 cars sold to China

  From a regional perspective, China is undoubtedly the strongest market for Porsche in the world.

Not only does China contribute about one-third of sales revenue and sales, but it is also Porsche's largest single market.

  In the first half of 2022, the sales revenue of the Chinese market was 5.64 billion euros, accounting for 31.47% of the total sales revenue, surpassing the 4.968 billion euros in North America and the 5.492 billion euros in the whole of Europe.

  In terms of car sales, in the first half of 2022, Porsche sold 148,600 vehicles worldwide, of which 46,700 were sold in the Chinese market, accounting for 31.4% of the total sales.

  The prospectus reads that China's growth is mainly driven by the growth of high-net-worth individuals, including an increasing number of women, as well as millennials (those born between 1980 and 1995).

  In terms of models, the Cayenne, which starts at 878,000 yuan in China, has become Porsche's most popular model.

In the first half of this year, Cayenne sold 44,600 units globally, and in 2021, the highest-selling model is the Macan, which starts at 573,000 yuan, with sales of 86,500 units.

  Porsche's classic 911 sold 21,500 units in the first half of this year, and from 2019 to 2021 its sales were 36,100 units, 31,000 units, and 39,100 units, respectively.

Decades of power struggle, internal governance arouses external concerns

  Not long ago, on September 1, Porsche CEO Oliver Bloom just replaced Herbert Diess as the CEO of the Volkswagen Group.

According to foreign media reports, Diess has long opposed the independent listing of Porsche, while Bloom is a firm advocate of Porsche IPO.

  At the same time, Bloom is also CEO of Volkswagen Group and CEO of Porsche AG, which also makes the outside world question his governance ability.

In an interview with Bloomberg, Bloom said his two positions would not have an impact on the corporate governance of Porsche or the Volkswagen Group because Porsche is an "autonomous company."

  In addition, the power struggle between the Porsche-Piëch family and the Volkswagen Group has created a certain degree of uncertainty in Porsche's management.

  Porsche AG, which has just IPOed, is part of the Volkswagen Group and is responsible for the production and design of Porsche cars and is headquartered in Stuttgart, Germany.

In addition to Porsche, the Volkswagen Group also owns Volkswagen, Audi, Bentley, Bugatti and other brands.

  Volkswagen AG is a subsidiary of Porsche SE, which holds 31.4% of the shares and 53.3% of voting rights.

  Porsche Holding's full name is Porsche Automobil Holding SE (Porsche Automobil Holding SE), and its main shares are held by the Porsche and Piech families.

According to the Wall Street Journal, Porsche Holding is an investment fund that has almost no assets other than its holding of Volkswagen.

Porsche Holding, which once owned the Porsche car brand, lost direct control in a 2008 short squeeze that briefly made Volkswagen the world's most valuable company.

Porsche Holding has made it clear that it wants to take back the Porsche brand.

  It is reported that the ancestor of the Piech family, Ferdinand Porsche, founded Porsche in 1931.

For years, Porsche Holding has tried to take full control of the Volkswagen Group and gain more say.

  "It's becoming increasingly clear that shareholder families are putting their interests first," said Henrik Schmidt, a corporate management expert at DWS, a public investor and asset management giant.

  Previously, the Volkswagen Group said in an announcement that, in the preparatory stage, the shares of the Porsche brand have been divided into 50% preferred shares (non-voting rights) and 50% ordinary shares (voting rights).

As part of the initial public offering, the Porsche brand will place up to 25 percent of preferred shares to investors in the Volkswagen Group.

  At the same time, Porsche Holding will acquire 25% of the Porsche brand plus 1 common share with voting rights at the placement price of the preferred stock plus a premium of 7.5%.

  This would give the Porsche-Piëch family (owners of Porsche Holding) a minority stake and veto power over strategic decisions.

Analysts believe that, according to this agreement, Porsche Holding will have a higher influence on the Porsche brand in the future.

  After the Porsche IPO, some analysts believe that this set an example for the independent listing of Lamborghini and other brands in the Volkswagen Group. Bloom also responded to Bloomberg in an interview, saying that this IPO is of great significance for the independent listing of other brands in the group. .

  However, the US Consumer News and Business Channel (CNBC) analysis believes that the Porsche IPO will not be a precursor for other companies to follow, because Porsche is an extremely powerful brand with a unique market position.