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Xiaomi Corp Class B (HK:1810)
:1810

Xiaomi (1810) AI Stock Analysis

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HK

Xiaomi

(OTC:1810)

Rating:78Outperform
Price Target:
HK$65.00
▲(13.24%Upside)
Xiaomi's overall stock score is driven by exceptional financial performance and positive earnings call results, highlighting strong growth and strategic advancements. Technical indicators show bullish momentum, but valuation concerns due to a high P/E ratio temper enthusiasm. Challenges in global markets provide some downside risk.
Positive Factors
Business Expansion
The proceeds from the share sale will be used for business expansion, R&D investment, and working capital, which is expected to support Xiaomi's global expansion strategy.
Product Launch
Initial orders in the first hour for the YU7 surpassed 289,000 units, which is well above market expectations.
Technological Innovation
Xiaomi's debut of a self-developed 3nm SoC at a product launch event marks a significant technological breakthrough.
Negative Factors
Market Competition
Xiaomi will not participate in the ongoing price war in the domestic EV market, which could impact its competitiveness.
Share Dilution
The share sale implies a 3.2% dilution of existing issued share capital, which may weigh on the share price in the near term.

Xiaomi (1810) vs. iShares MSCI Hong Kong ETF (EWH)

Xiaomi Business Overview & Revenue Model

Company DescriptionXiaomi Corporation, an investment holding company, provides hardware, software, and internet services in Mainland China, India, Europe, and internationally. It operates through Smartphones, IoT and Lifestyle Products, Internet Services, and Others segments. The Smartphones segment sells smartphones. The IoT and Lifestyle Products segment offers smart TVs, laptops, AI speakers, and smart routers; various IoT and other smart hardware products; and lifestyle products. The Internet Services segment provides advertising services and internet value-added services; and engages in the online game and fintech businesses. The Others segment offers hardware repair services for its products. The company also engages in the wholesale and retail of smartphones and ecosystem partners' products; development and sale of software, hardware, and electronic products; procurement and sale of smartphones, ecosystem partners' products, and spare parts; procurement of raw materials; and operation of retail stores. It is also involved in the research and development of computer software and information technology; property management and commercial factoring activities; e-commerce and market research businesses; sale of e-books; investment, asset management, project investment, property management, and investment consulting, as well as technology diffusion, transfer, and consulting activities; and provision of internet finance, consumer loan, virtual banking, software related, information technology advisory, electronic payment, and internet services. Xiaomi Corporation was incorporated in 2010 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyXiaomi makes money primarily through the sale of its smartphones, which constitute a significant portion of its revenue. Additionally, the company generates income from its IoT and lifestyle products, which include smart home devices, wearables, and other electronic gadgets. Xiaomi also leverages its software and internet services, offering apps, games, and cloud services, which contribute to its earnings. The company adopts a unique business model by maintaining low profit margins on hardware products to expand its user base, thereby growing its internet services revenue. Strategic partnerships and investments in technology companies further enhance its revenue streams, enabling Xiaomi to maintain a competitive edge in the global technology market.

Xiaomi Earnings Call Summary

Earnings Call Date:May 27, 2025
(Q1-2025)
|
% Change Since: 11.89%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
Xiaomi reported a record-breaking quarter with significant growth across multiple segments including smartphones, IoT, and EVs. The company's advancements in AI and chip technology further strengthen its market position. However, challenges persist in some global markets, impacting overall performance.
Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Total revenue reached RMB111.3 billion, up 47% year-on-year, marking the strongest single quarterly financial report in Xiaomi's history. Adjusted net profit exceeded RMB10 billion for the first time, reaching RMB10.7 billion, up 64% year-on-year.
Smartphone Market Leadership
Xiaomi returned to number one in smartphone shipments in Mainland China, increasing market share by 4.7 percentage points year-on-year to 18.8%. Smartphone revenue was RMB50.6 billion, with a gross margin rising to 12.4%.
IoT Revenue Surge
IoT revenue reached RMB32.3 billion, up 59% year-on-year, driven by strong growth in multiple categories, including large home appliances and tablets.
AI and Chip Development
Xiaomi announced their first 3 nanometer flagship smartphone SOC chip, XRING O1, and an AI Big Model, Xiaomi MiMo, showcasing significant advancements in core technology.
EV Business Expansion
EV business delivered 76,000 new EVs in Q1, with the Xiaomi SU7 series leading sales in its price range.
Negative Updates
Challenges in Global Smartphone Market
Despite strong performance in China, global markets like India saw a decline in market share due to local issues and strategic adjustments.
Company Guidance
In the Xiaomi 2025 Q1 conference call, the company reported record-breaking financial metrics, highlighting a total revenue of RMB111.3 billion, a growth of 47% year-on-year, and an adjusted net profit of RMB10.7 billion, marking a 64% increase. Xiaomi's smartphone business generated RMB92.7 billion in revenue, up 23% year-on-year, with the global smartphone ASP reaching RMB1,211. The company also achieved a gross margin of 22.8%. Xiaomi's R&D expenses reached RMB6.7 billion, and the company plans to further increase its R&D investment to RMB30 billion in 2025, focusing heavily on AI and chip development. The call underscored Xiaomi's strategic focus on premiumization and expansion in IoT, with IoT revenue hitting RMB32.3 billion, a 59% increase. Additionally, Xiaomi's market share in high-end smartphones in Mainland China rose to 25%, with a significant improvement in its large home appliance business, doubling revenue year-on-year. The company also reported substantial growth in its EV segment, delivering 76,000 new EVs in Q1, contributing to an EV revenue of RMB18.1 billion.

Xiaomi Financial Statement Overview

Summary
Xiaomi exhibits strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is solid with low leverage, enhancing financial stability. However, negative cash flow from investing activities requires attention.
Income Statement
87
Very Positive
Xiaomi has demonstrated strong revenue growth, with a TTM revenue increase of 9.8% from the previous year. The gross profit margin and net profit margin are healthy at 21.2% and 7.6% respectively, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust at 8.4% and 8.3%, suggesting strong operational performance. The company has shown consistent growth in profitability over the past years, which is a positive indicator.
Balance Sheet
82
Very Positive
The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.13, showcasing financial prudence. The equity ratio stands at 53.2%, indicating a strong capital structure. Return on equity is impressive at 12.7%, reflecting efficient use of shareholder funds. The company's liabilities are well-covered by its equity, suggesting financial stability.
Cash Flow
78
Positive
Xiaomi's cash flow statement shows a strong free cash flow growth rate, driven by a significant increase in operating cash flow. The operating cash flow to net income ratio is 1.75, indicating healthy cash generation relative to profits. The free cash flow to net income ratio is 1.82, reflecting strong cash conversion. However, the cash flow from investing activities is negative, which could impact future liquidity if not managed carefully.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue401.69B365.91B270.97B280.04B328.31B245.87B
Gross Profit85.14B76.56B57.48B47.58B58.26B36.75B
EBITDA33.16B29.49B28.40B8.77B30.32B26.71B
Net Income30.40B23.66B17.48B2.47B19.34B20.36B
Balance Sheet
Total Assets264.20B403.16B324.25B273.51B292.89B253.68B
Cash, Cash Equivalents and Short-Term Investments71.24B101.77B107.83B67.78B86.17B95.53B
Total Debt22.46B36.01B29.83B26.06B30.68B18.48B
Total Liabilities115.82B213.95B159.99B129.58B155.46B129.67B
Stockholders Equity148.10B188.74B164.00B143.66B137.21B123.69B
Cash Flow
Free Cash Flow48.13B32.00B35.03B-10.19B2.62B18.85B
Operating Cash Flow53.09B39.30B41.30B-4.39B9.79B21.88B
Investing Cash Flow-36.18B-35.39B-35.17B15.55B-45.01B-17.68B
Financing Cash Flow34.19B-4.00B-504.97M-7.85B4.50B26.22B

Xiaomi Technical Analysis

Technical Analysis Sentiment
Positive
Last Price57.40
Price Trends
50DMA
53.43
Positive
100DMA
51.40
Positive
200DMA
40.31
Positive
Market Momentum
MACD
1.56
Positive
RSI
56.75
Neutral
STOCH
35.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1810, the sentiment is Positive. The current price of 57.4 is above the 20-day moving average (MA) of 56.03, above the 50-day MA of 53.43, and above the 200-day MA of 40.31, indicating a bullish trend. The MACD of 1.56 indicates Positive momentum. The RSI at 56.75 is Neutral, neither overbought nor oversold. The STOCH value of 35.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1810.

Xiaomi Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$1.52T43.7114.98%38.46%72.44%
61
Neutral
€9.77B17.183.87%1.74%4.38%-25.22%
$740.95M13.133.12%2.28%
$3.26B14.0110.36%1.55%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1810
Xiaomi
57.40
40.72
244.12%
SWDHF
Skyworth Digital Holdings
0.45
0.07
18.42%
TCLHF
TCL Electronics Holdings
1.30
0.52
66.67%

Xiaomi Corporate Events

Xiaomi Corporation Announces Successful AGM Resolutions
Jun 5, 2025

Xiaomi Corporation announced the successful passing of all ordinary resolutions at its Annual General Meeting held on June 5, 2025. Key resolutions included the re-election of directors, authorization of directors’ remuneration, and the re-appointment of PricewaterhouseCoopers as auditors. These decisions reflect Xiaomi’s commitment to maintaining strong governance and operational stability, which could positively impact its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1810) stock is a Hold with a HK$60.00 price target. To see the full list of analyst forecasts on Xiaomi stock, see the HK:1810 Stock Forecast page.

Xiaomi Announces Share Awards to Boost Employee Engagement
May 28, 2025

Xiaomi Corporation announced the grant of 30,827,078 Award Shares to 1,615 participants, including employees and service providers, under its 2023 Share Scheme. Additionally, 1,423,271 XMHK Options were granted to four employees under the 2024 Xiaomi HK Share Scheme. This initiative aims to align employee performance with company goals, featuring a time-based vesting schedule and a clawback mechanism to ensure adherence to company policies. The move is expected to enhance employee motivation and retention, potentially strengthening Xiaomi’s competitive position in the technology sector.

The most recent analyst rating on (HK:1810) stock is a Hold with a HK$60.00 price target. To see the full list of analyst forecasts on Xiaomi stock, see the HK:1810 Stock Forecast page.

Xiaomi Reports Record Q1 2025 Financial Results with Strong Growth in Revenue and Profit
May 27, 2025

Xiaomi Corporation announced record-high financial results for the first quarter of 2025, with total revenue reaching RMB111.3 billion, a 47.4% increase year-over-year. The company’s strategic focus on ‘Human × Car × Home’ has led to significant growth in its smartphone and AIoT segments, maintaining its top 3 global smartphone shipment ranking. Xiaomi’s commitment to technological advancement is evident in its increased R&D investments and the unveiling of its first self-developed flagship processor, Xiaomi XRING O1. The company continues to expand its product offerings and user ecosystem, with notable achievements in global smartphone shipments and connected IoT devices.

The most recent analyst rating on (HK:1810) stock is a Hold with a HK$60.00 price target. To see the full list of analyst forecasts on Xiaomi stock, see the HK:1810 Stock Forecast page.

Xiaomi Schedules Board Meeting to Review Q1 2025 Results
Apr 25, 2025

Xiaomi Corporation has announced that its board of directors will meet on May 27, 2025, to review and approve the unaudited consolidated first quarterly results for the period ending March 31, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the year.

Xiaomi Announces 2025 Annual General Meeting Agenda
Apr 24, 2025

Xiaomi Corporation has announced its upcoming annual general meeting scheduled for June 5, 2025, in Beijing, China. The meeting will address several key agenda items including the re-election of board members, approval of directors’ remuneration, and re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, shareholders will consider resolutions related to the purchase of company shares and the issuance of Class B shares, which could impact the company’s stock market activities and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025