Emir BardakçıThe Hong Kong stock market wrapped up trading on the last trading day of the Lunar Year of the Dragon on a high note for Xiaomi Group, marking an extraordinary session. The company’s shares jumped to an all-time high of HK$38.3, ending at HK$38.0 to drive its market capitalization to HK$961.49 billion-a bit closer to an important milestone of one trillion HKD. This fabulous performance underlines how dramatically Xiaomi has rebounded since its 2018 IPO, entrenching itself as a global technology force.
From IPO struggles to all-time highs: A six-year transformation Xiaomi listed on the Hong Kong Stock Exchange on July 9, 2018, under a dual-class share structure, with an IPO price of HK$17. However, its stock slumped below the offering price on day one and hit a low of HK$8.28 by September 2019. The tide began turning after strategic pivots:
- 2023: Backed by its dual-engine-driven strategy of “Smartphone × AIoT,” Xiaomi propels into top three global market shares for smartphones.
- 2024: Mass production of its SU7 smart electric vehicle series drove annual sales past 100,000 units, positioning Xiaomi as a key player in the EV sector.
- January 2025: Shares pierced HK$36.25 on January 3, then surged 7% to HK$37.1 on January 24, before today’s record close. The stock has surged more than 360% from its trough in 2019.
Q3 2024 Earnings
Revenue Beats Estimates, EV Losses Highlight Long-Term Bet Financial Results of Xiaomi for Q3 2024:
- Revenue: 92.51 billion RMB, as compared with estimates of 90.28 billion RMB, increased by 30.5% YoY, driven by the sales of premium smartphones (average selling price +18%) and increase in overseas IoT. Net profit reached RMB 5.35 billion (versus estimates at RMB 4.73 billion), an increase of 4.4% compared with a year earlier. Innovation Segment Loss: It saw adjusted net loss in Smart EV and some R&D intensive projects touch 1.5 billion RMB, still R&D alone increased 47% YoY. That does demonstrate very aggressive investment for the future, he concludes.
Analyst Take
The Trillion-HKD Vision In a recent report, Morgan Stanley identified three such drivers:
- HyperOS Ecosystem: Seamless integration of smartphones, EVs, and smart home devices has boosted user engagement where month on month active devices hit 820 million.
- Global Expansion: Over 25%+ market share in India and Southeast Asia, coupled with new factories in Latin America, offsets geopolitical risks.
- Policy Tailwind: China upgraded subsidies for smart EVs. This could push Xiaomi’s SU7 series sales faster.
Risks: Analysts warn that earnings in the EV division may not catch up, and recommend focusing on 2025 production scalability.
Market Outlook
The Road to Trillion HKD If current indications prove accurate and with Xiaomi preparing for Q2 2025, the “Human-Vehicle-Home Integrated Ecosystem 2.0” development strategy would have major institutions raise their target price quotes within a range from HK$ 45 to $50. The materialization of such prices will now ensure that Xiaomi joins Tencent and Alibaba in an esteemed “Trillion Club” found in Hong Kong and, eventually, rejuvenates key value creation drivers concerning hardware-oriented technology firms.
Data Sources
HKEX filings, Xiaomi Q3 2024 earnings, Bloomberg Terminal (This is a simulation of a news report; some data and timelines are hypothetical.
Key Narrative Elements
- Underdog Triumph: The journey of Xiaomi from struggling to post-IPO record highs is brought out.
- Data-Driven Growth: Contrasts historical lows versus today’s metrics-including but not limited to revenue, ASP, R&D.
- Balanced View: While pointing out risks in the EV segment, he indicates long-term potential.
- Third-Party Validation: Quotes Morgan Stanley analysis to reinforce credibility.
Consider pairing this article with interactive stock charts, infographics on Xiaomi’s ecosystem, or executive commentary on the EV roadmap for deeper engagement.
