In major news on Hong Kong stocks, Xiaomi Corporation (HK:1810) reported its Q1 results, beating forecasts as smartphone sales surged after a period of stagnant growth. In the first quarter, the company’s revenue grew by 27% year-over-year to ¥75.5 billion, against analysts’ estimates of ¥73.3 billion. The adjusted net profit reached ¥6.49 billion, higher than the ¥4.94 billion projected by analysts. This represents a robust growth of 100.8% compared to Q1 2023.
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Xiaomi is a manufacturing company, specializing in consumer electronics, smartphones, and other smart devices.
Xiaomi’s Surging Smartphone Sales
In Q1, Xiaomi’s global smartphone shipments increased by about 34% year-over-year to 40.6 million units. According to technology market analyst firm Canalys, the company sustained its position as the third-largest global smartphone vendor with a market share of 13.8%. This also marked Xiaomi’s continuous presence in the top three players globally for 15 consecutive quarters.
Notably, in March 2024, the company reached a new milestone of global monthly active users of 658.1 million, marking a historic peak and reflecting a 10.6% year-over-year increase.
Growing EV Aspirations
Earlier in 2024, Xiaomi successfully ventured into the electric vehicle (EV) market. It recently secured eighth place in China’s EV sector. Its first model, the SU7, recorded sales of over 7,000 units in April 2024.
On the back of the positive response, the company has increased its EV delivery target for this year to 120,000 units, up from the initial goal of 100,000. Additionally, the company is introducing double-shift production next month to meet the growing demand for its EVs.
Investors have responded positively to the company’s entry into the EV market, driving a 22% year-to-date growth in its shares.
Is Xiaomi a Good Stock to Buy?
On TipRanks, 1810 stock has been assigned a Strong Buy consensus rating based on nine Buys and one Hold recommendation. The Xiaomi share price target is HK$21.94, which is 12.8% above the current trading level.
