Brief TMT & Internet: Xiaomi (1810): Overvalued and Lingering Overhang and more

In this briefing:

  1. Xiaomi (1810): Overvalued and Lingering Overhang
  2. Morning Views Asia: Glenmark Pharmaceuticals, Softbank Group

1. Xiaomi (1810): Overvalued and Lingering Overhang

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Xiaomi Corp (1810 HK) share price has gone up around 10% in the past few days due to a couple of reasons namely re-rating from brokers, new product launches, and 5G AIoT applications – causing investors to be extremely bullish on the company’s future prospects. However, a couple of overhangs linger namely the soft Q1 2020 smartphone shipment volumes and the increasing tension between China and India that recently occurred. The question that needed an answer is whether is it still worth holding Xiaomi’s shares after the run-up? 

source: Capital IQ, analyst

With a valuation that is relatively pricey while its net income margin is lower than its peers, Xiaomi should not trade at the 23x forward PER. 

2. Morning Views Asia: Glenmark Pharmaceuticals, Softbank Group

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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