Xiaomi Record Profit, But Stock Still Low: Would You Add at HK$30?

Xiaomi reported its annual results, with adjusted net profit reaching RMB 39.166 billion, up 43.8% year-over-year, marking a record high. However, despite the strong earnings, Xiaomi’s current share price is HK$32, and it has been continuously breaking down after reaching its peak. The company plans to invest RMB 60 billion in AI over the next three years. If memory prices rise beyond expectations, the company may consider raising product prices Can Xiaomi hold HK$30, or will it continue to break down and repeat the “halving curse”? With record-high net profit, would you buy Xiaomi on dips?

avatarIsleigh
03-25

📱 Xiaomi: Record Profits… But Why Is the Stock Still Weak? Buy the Dip or Avoid the Trap?

$XIAOMI-W(01810)$  Markets are not confused. They are questioning sustainability. Xiaomi just delivered: 💰 RMB 39.2B net profit (record high) 📈 +43.8% YoY growth 🤖 Aggressive RMB 60B AI investment plan And yet... 👉 The stock is drifting lower. That disconnect is the trade. 🧠 What the Market Is Actually Pricing This is not about the past. It is about what comes next. Right now, the market sees 3 things: 1. 📉 Peak Margin Risk Record profits often signal cycle highs, not beginnings. Memory costs rising Pricing pressure in smartphones EV business still scaling 👉 Margins may compress from here 2. 💸 AI Spend = Near-Term Drag RMB 60B into AI is not small. It means: Higher capex Longer payback cycles Uncertain monetisation
RepostReply
📱 Xiaomi: Record Profits… But Why Is the Stock Still Weak? Buy the Dip or Avoid the Trap?
avatarBen Tiger
03-26
$XIAOMI-W(01810)$  yes. Xiaomi is one the major market cap. I believe in long prospects of Xiaomi. It's main rev comes from Handsets, electronics and gadgets. The EV segments haven't been able to give investor's assurance. Overall, I think the other segments revenue continues to do well. XIAOMI should be bottoming. I look forward to xiaomi venturing into semiconductors and AI sectors. They can give investors' more optimism. 
RepostReply
avatarJasongan
03-25
$XIAOMI-W(01810)$   The Tug of War NEGATIVE — Algorithms Sell On: Net profit down -23.7% YoY Headline looks bad at first glance Memory cost headwinds continue POSITIVE — Value Investors Buy On: Revenue BEAT estimates Adjusted profit BEAT by 9.8% EV PERMANENTLY profitable Full year profit +44% — all time high RMB 60B AI investment confirmed Q4 EV deliveries 145,115 — record! Initial selloff on headlines. 🔥 BUY aggressively 
RepostReply