Xiaomi 1810

[winston]

not vested

Xiaomi Corp (1810 HK) - Smartphone demand remained soft in 4Q22

According to the preliminary data from Canalys, global smartphone shipments declined 17% and 11% year-on-year (YoY) in 4Q22 and 2022 respectively due to softer demand and supply chain disruption.

Xiaomi’s global market share fell to 11% in 4Q22 vs 13% in 4Q21, largely due to subdued demand in India.

Xiaomi lost its leadership position in India and fell to third place in terms of market share in 4Q22 due to poor e-commerce festive sales performance.

Looking into 2023, Canalys estimates flat to marginal growth for the global smartphone market, due to slower economic growth and a higher interest rate environment which could potentially weigh on consumption demand.

While China’s earlier-than-expected reopening could improve domestic consumer and business confidence, Xiaomi’s performance could remain under pressure in the near-term, given a gloomy macro-outlook, rising inflation in overseas markets and surging Covid-19 cases in China which could impact offline sales channels in 4Q22 and 1Q23. HOLD.

Source: OCBC

[winston]

not vested

Xiaomi’s profit beat expectations as the world’s third-largest smartphone maker weathered a difficult quarter to close the year.

Smartphone shipments were down dramatically in the three months ended December but the company still managed to record net income of 1.5 billion yuan (S$291 million), better than the average analyst estimate of 800 million yuan.

Revenue in the quarter was 66 billion yuan.

Xiaomi’s global smartphone shipments fell 26.3 per cent in the fourth quarter – the steepest decline among all vendors.

Still, the company’s 33.2 million units shipped in the period was good enough to edge out local rivals to keep the title as the world’s No 3 smartphone brand after Apple and Samsung Electronics.

Source: Phillips

[winston]

India High Court rejects bid to overturn seizure of US$676 million from Xiaomi amid sour India-China tech relations

India’s federal financial crime agency says investigation uncovered years of remittance payments made by Xiaomi India to three foreign-based entities

Xiaomi says contested payments were royalties paid for licensed technologies and an entirely legitimate part of its business operations

by Dylan Butts

Source: SCMP
https://www.scmp.com/tech/article/32181 ... china-tech

[winston]

not vested

Xiaomi Corp reported a 18.9 per cent drop in quarterly revenue on Wednesday (May 24) as consumer demand for smartphones remained weak even as the economy recovered from the Covid-19 pandemic.

Sales in the first quarter of 2023 reached 59.5 billion yuan (S$11.4 billion), down from 73.4 billion yuan in the same quarter a year earlier, roughly in line with analyst estimates of 59.4 billion yuan.

Net income rose to 3.2 billion over the period, an increase of 13.1 per cent from 2.9 billion yuan a year earlier.

Source: Phillips

[winston]

not vested

Brokers│Views

Credit Suisse│1Q operating profit beat; management upbeat on overseas shipments in 2Q23

Nomura│1Q sales and gross profit basically in line; sales volume growth expected to continue in 2Q23

CMB International│1Q earnings growth beat on the back of the record-high GPM and improving destocking; focus on electric vehicle production progress

Morgan Stanley│Profit margin recovery supported strong earnings growth despite weak revenue

Citigroup│Quarterly results ahead of forecasts; sustainable profit margins outlook in 2Q23 should strengthen market confidence

CICC│Smartphone GPM decent; focus on AI development outlook

Goldman Sachs│1Q results broadly in line with estimate-beating net profit

Haitong International│Short-term demand still uncertain; EV production may hamper 2024 earnings outlook

CLSA│1Q revenue and earnings growth both beat forecasts; 2023-24E net profit growth ramped up by 47%/ 19%

Daiwa│Core profit anticipated to see sequential improvement this year

JPMorgan│Cost control facilitated margin expansion in 1Q but recovery outlook of operating revenue remained clouded

BofA Securities│Stronger-than-assumed 1Q results driven by decent opex control

UOB Kay Hian│Quarterly results solid

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

WAITING FOR INFLECTION POINT .

Recovery of the smartphone market is delayed by weak consumer demand
Expecting a mild recovery in 2H23
Xiaomi ranked 5th with a 13% market share in China in 1Q23

The International Data Corporation (IDC) revised their estimates of global shipments of smartphones in 2023 from a decline of 1.1% to 3.2%.

The downward revision was largely attributed to weaker economic outlook and continued inflation.

Xiaomi’s smartphone shipments fell 21% YoY to 30.4m in 1Q23.

The recovery of the smartphone market is delayed by weak consumer demand.

We now expect a mild recovery in 2H23 as management guides for a mid-single digit year-on-year (YoY) decline in China’s smartphone market in 2023.

On a positive note, inventory pressure is likely to improve in 2H23.

Xiaomi’s inventory destocking is on track with inventory balances falling 24% YoY or 15% quarter-on-quarter (QoQ) to CNY42.6b in 1Q23.

Internet of things (IoT) revenue could be the key growth driver this year.

Source: OCBC

[winston]

not vested

XIAOMI(1810)

Analysis：

XIAOMI (1810) effectively executed the Group`s 2023 core operating strategy of “dual emphasis on scale and profitability”, and has delivered initial results.

In the first quarter of 2023, the Group`s gross profit margin reached a record high of 19.5%.

The gross profit margin of its smartphone business reached 11.2%, an increase of 3.1 percentage points quarter-over-quarter.

Thanks to its effort to optimize its product mix, the gross profit margin of its IoT and lifestyle products reached 15.7%.

The gross profit margin of its internet services reached 72.3% as its global internet user base continued to expand.

In addition, as it enhanced and refined the operations of its advertising business by optimizing its monetization channels and improving its customer acquisition efficiency, revenue from overseas performance-based and brand advertising registered a new quarterly high.

The Group`s overall expenses in the first quarter was RMB9.4 billion, down 6.4% year-over-year.

It continued to adhere to its prudent operating strategy at the same time.

In the first quarter of 2023, its total inventory was RMB42.6 billion, down 24.1% year-over-year, hitting its lowest level in the past nine quarters.

In terms of its automotive business, it was reported that Xiaomi`s progress has exceeded expectation and it is expected to achieve mass production in the first half of 2024. (I do not hold the above stock)

Strategy：
Buy-in Price: $11.70, Target Price: $12.80, Cut Loss Price: $11.10

Source: Phillips

[winston]

not vested

XIAOMI CORP (1810 HK)

Recommendation : BUY
Fair Value : HKD 15.50

A STRONG QUARTER .

Record high gross profit margin (GPM) of 21%
The decline in smartphone market showed signs of easing
Strong growth in smart large home appliances

Xiaomi’s 2Q23 results beat our expectations on better-than-expected GPM.

Total revenue fell 4.0% year-on-year (YoY) to CNY67.4b while adjusted net profit rose 2.5x YoY to CNY5.1b.

Smartphone’s GPM improved by 4.6 percentage points (ppt) to 13.3%, hitting a record high.

Smartphone revenue fell 13.4% YoY to CNY36.6b on the back of lower smartphone shipments, but partially offset by higher average selling prices (ASP).

Revenue from internet of things (IoT) and lifestyle products grew 12.3% YoY to CNY22.3b while GPM improved by 3.3ppt to 17.6% in 2Q23.

Separately, internet services revenue rose 6.8% YoY to CNY7.4b while GPM increased 1.1ppt to 74.1%.

We expect sequential improvement in smartphone shipments in 3Q23 as inventory continues to normalise and demand recovers.

Smartphone GPM could stay healthy, thanks to Xiaomi’s premiumisation strategy.

Management will continue to tap on growth opportunities in artificial intelligence (AI) and expand market shares.

We turn more positive on Xiaomi’s earnings recovery in 2H23.

Factoring a strong 2Q23 results, we revise our growth and GPM estimates. Correspondingly, our fair value estimate increases from HKD12.40 to HKD15.50.

Source: OCBC

[behappyalways]

Xiaomi has taken a big step forward in its car-making dream!
It is rumored that it has been in trial production for nearly a month and is producing 50 prototypes a week. It is available for 150,000 yuan.

小米造車夢跨大步!傳已試產近1個月 1周產50輛樣車 15萬民幣有找｜非凡財經新聞｜20230907

https://m.youtube.com/watch?v=N0i2rjtSQPM

[winston]

not vested

G Sachs Upgrades XIAOMI-W (01810.HK) to Buy, Lifts TP to $16.3

2023/10/19

Goldman Sachs issued a research report on XIAOMI-W (01810.HK) , stating that the company's "scale and profit" business strategy has led to an upward revision of its profit margins.

The broker upgraded XIAOMI from Neutral to Buy and raised its target price from $14.9 to $16.3.

The broker believed the YoY recovery in XIAOMI's revenue and smartphone shipments would continue into 4Q23 and into next year, with core adjusted operating costs rising 13% YoY next year, driven by the restoration of inventory replenishment and strong shipment growth outside China.

There are also multiple revaluation potentials as shipments gain momentum.

Goldman Sachs raised its revenue and adjusted net profit forecasts for XIAOMI in 3Q by 2% and 3% each.

Smartphone shipments increased by 8% due to higher non-China shipments, partially offset by a 4% decline in average sales.

The broker's revenue and earnings forecasts for the company from 2023 to 2025 remain broadly unchanged.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news