- Xiaomi’s revenue for Q1 is 111.29 billion yuan, surpassing the estimate of 109 billion yuan.
- Operating profit has dramatically increased to 13.13 billion yuan, compared to 3.68 billion yuan year-on-year, and exceeds the estimate of 8.59 billion yuan.
- Research and development expenses are recorded at 6.71 billion yuan, slightly below the estimated 6.89 billion yuan.
- Net income is reported at 10.92 billion yuan, significantly higher than the estimated 7.87 billion yuan.
- Adjusted net income has risen by 64% year-on-year to 10.68 billion yuan, surpassing the 9.07 billion yuan estimate.
- The average selling price for Xiaomi smartphones is 1,211 yuan, higher than the expected 1,195 yuan.
- Market analysts show strong support for Xiaomi with 52 buy ratings, 3 hold ratings, and only 1 sell rating.
Xiaomi Corp on Smartkarma
Analyst coverage of Xiaomi Corp on Smartkarma reveals mixed sentiments. Nicolas Baratte, a bear analyst, expresses skepticism about Xiaomi’s new smartphone chip due to high development costs and lack of performance benefits. Baratte advises selling Xiaomi, arguing that the economics don’t add up for the chip.
On the bullish side, analysts like Caixin Global and Trung Nguyen highlight Xiaomi’s achievement in unveiling its first self-developed 3nm system-on-chip, positioning itself among the top tier of smartphone chipmakers. Trung Nguyen emphasizes the recovery in Treasury yields and the impact on high yield issuers like Xiaomi Corp, reflecting a positive outlook on the company’s resilience.
A look at Xiaomi Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores have given Xiaomi Corp a promising long-term outlook based on a mix of factors. With a strong momentum score of 5, indicating positive market performance trends, Xiaomi could be a solid choice for investors seeking a company with strong growth potential. Additionally, scoring high in both Growth and Resilience at 4 each, Xiaomi is positioned well for future expansion and has shown robustness in the face of market challenges.
While Xiaomi’s Value score is lower at 2, suggesting the stock may not be undervalued, its overall outlook remains positive. Despite a moderate Dividend score of 1, investors looking for growth opportunities in the technology sector might find Xiaomi appealing due to its high Growth and Resilience scores. Overall, Xiaomi Corporation’s diverse product offerings in communication equipment and parts, including mobile phones and smart devices, showcase its potential for continued global market success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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