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Xiaomi
(1810)
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Rating:66Neutral
Price Target:
HK$31.00
▲(11.67% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by solid profitability and a conservative balance sheet, offset by a notable TTM cash-flow setback (negative free cash flow and weaker cash conversion). Technicals are mixed with modest near-term strength but a weaker long-term trend. Valuation is moderate at ~19x earnings with no dividend yield provided, while the latest earnings call was cautiously positive on strategy and growth initiatives but acknowledged significant near-term cost, demand, inventory, and EV/AI loss pressures.
Positive Factors
Conservative balance sheet
Low leverage and expanding equity provide Xiaomi with financial resilience through cyclical consumer-electronics demand. This gives management flexibility to fund product development, support ecosystem expansion, and absorb volatility without relying heavily on additional borrowing.
Negative Factors
Sharp deterioration in cash generation
The reversal from strong positive free cash flow to a negative TTM result weakens cash conversion and reduces internally generated funding. If sustained, working-capital needs or investment intensity could constrain flexibility and make growth initiatives more dependent on balance-sheet resources.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and expanding equity provide Xiaomi with financial resilience through cyclical consumer-electronics demand. This gives management flexibility to fund product development, support ecosystem expansion, and absorb volatility without relying heavily on additional borrowing.
Read all positive factors
Xiaomi (1810) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$675.53B
Dividend YieldN/A
Average Volume (3M)172.67M
Price to Earnings (P/E)17.6
Beta (1Y)1.22
Revenue Growth5.72%
EPS Growth-10.32%
CountryHK
Employees52,876
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)1.27
Shares Outstanding21,330,037,000
10 Day Avg. Volume130,502,129
30 Day Avg. Volume172,672,308
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)3.53
Price to Sales (P/S)2.06
P/FCF Ratio44.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$34.87Price Target Upside25.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)0.96
Revenue Forecast (FY)HK$441.35B
Xiaomi Business Overview & Revenue Model
Company Description
Xiaomi Corporation, an investment holding entity, delivers a comprehensive suite of hardware, software, and internet services across a broad international footprint, including Mainland China, India, and Europe. Its business is organized into disti...
How the Company Makes Money
Xiaomi primarily makes money through a mix of hardware sales and recurring/service-driven revenue. (1) Smartphones: A major revenue stream comes from selling Xiaomi-branded smartphones across different price tiers, distributed via e-commerce, carr...
Xiaomi Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call highlights a company maintaining solid scale and strategic progress across smartphones, IoT, EVs, AI and robotics: strong revenue (RMB 108.9B), positive adjusted profit (RMB 6.2B), category rankings, rapid MiMo adoption, EV delivery growth and notable robotics/foundational-model milestones. At the same time management flagged significant near-term headwinds — historically high memory costs, smartphone shipment declines, larger raw-material inventory, EV/AI segment operating losses (RMB 2.6B) and elevated R&D/CapEx intensity. On balance the call presents multiple execution wins and advancing strategic initiatives that outweigh current operational and cost pressures, while acknowledging short-term margin and demand challenges.Positive Updates
Consolidated revenue and profit
Total revenue of RMB 108.9 billion in Q2 2026 with adjusted net profit of RMB 6.2 billion, and group gross margin of 19.8%.
Negative Updates
High memory costs pressuring margins and pricing
Memory costs remain at historically high levels (management noted memory prices ~5x Q2 last year at peak commentary), exerting material pressure on smartphone unit economics and forcing product-mix and pricing adjustments.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated revenue and profit
Total revenue of RMB 108.9 billion in Q2 2026 with adjusted net profit of RMB 6.2 billion, and group gross margin of 19.8%.
Read all positive updates
Company Guidance
Management guided that near-term operations will face sustained pressure from high memory/storage costs, slow consumer demand recovery and fierce competition, noting memory costs are roughly 5x year‑ago levels and raw material inventory rose to ~RMB40bn (from ~RMB30bn); they expect the pace of memory cost increases to slow in Q3–Q4 and described the smartphone business as “controllable” after Q2 results (Q2 group revenue RMB108.9bn; adjusted net profit RMB6.2bn; smartphone revenue RMB42.1bn, shipments 31.2m, record‑high ASP, smartphone gross margin 8.5%). Management reiterated a long‑term focus on heavy investment in next‑generation tech—R&D H1 RMB18.2bn (up 25.6% YoY), Q2 R&D RMB9.2bn (up 18.9%), AI‑related spend ~30% of R&D and a previously disclosed AI budget of RMB16bn for the year—while Q2 CapEx was RMB3.6bn (65.8% to EV/AI) and share buybacks reached ~HKD11.7bn YTD; they plan to accelerate AI monetization (MiMo API/token revenue beginning to contribute, MiMo call volume surged), expand IoT/overseas retail (IoT revenue RMB31.3bn, IoT GM 20.1%, 640+ new overseas stores), grow Internet services (MAUs 770m, June ARPU gains; Internet revenue RMB9bn, GM 76.8%) and scale EVs (Q2 deliveries 104,199; smart EV & AI revenue RMB24.9bn, segment GM 19.2%; SU7 cumulative >500k as of Aug 17), with product launches (SkyNomad in Sept) and overseas EV roll‑out planned.Xiaomi Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 436.74B | 457.29B | 365.91B | 270.97B | 280.04B | 328.31B |
| Gross Profit | 93.43B | 101.81B | 76.56B | 57.48B | 47.58B | 58.26B |
| EBITDA | 41.72B | 38.78B | 27.41B | 18.45B | 8.53B | 22.03B |
| Net Income | 32.92B | 41.64B | 23.66B | 17.48B | 2.47B | 19.34B |
Balance Sheet | ||||||
| Total Assets | 515.95B | 508.31B | 402.96B | 323.29B | 269.64B | 292.36B |
| Cash, Cash Equivalents and Short-Term Investments | 125.84B | 112.32B | 105.94B | 112.17B | 70.72B | 90.33B |
| Total Debt | 39.27B | 36.14B | 35.99B | 29.74B | 25.69B | 29.47B |
| Total Liabilities | 246.18B | 241.88B | 213.84B | 159.51B | 127.75B | 155.18B |
| Stockholders Equity | 269.65B | 266.33B | 188.64B | 163.51B | 141.63B | 136.97B |
Cash Flow | ||||||
| Free Cash Flow | -3.15B | 21.37B | 32.00B | 35.03B | -10.19B | 2.62B |
| Operating Cash Flow | 8.14B | 34.14B | 39.30B | 41.30B | -4.39B | 9.79B |
| Investing Cash Flow | 6.67B | -71.68B | -35.39B | -35.17B | 15.55B | -45.01B |
| Financing Cash Flow | -13.37B | 30.77B | -4.00B | -504.97M | -7.85B | 4.50B |
Xiaomi Technical Analysis
Negative
27.76
Price Trends
27.01
Negative
27.75
Negative
32.14
Negative
Market Momentum
0.02
Positive
43.92
Neutral
16.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1810, the sentiment is Negative. The current price of 27.76 is above the 20-day moving average (MA) of 27.35, above the 50-day MA of 27.01, and below the 200-day MA of 32.14, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 16.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1810.
Xiaomi Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$42.18B | 10.62 | 20.29% | 2.90% | 13.78% | 33.46% | |
66 Neutral | HK$675.53B | 17.61 | 12.35% | ― | 5.72% | -10.32% | |
62 Neutral | HK$1.96B | 58.28 | 9.42% | 1.44% | -15.02% | -7.20% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | HK$7.66B | 7.54 | 4.78% | 2.76% | 5.05% | 241.01% | |
45 Neutral | HK$222.29M | -8.94 | -5.13% | 4.26% | -14.71% | 37.97% | |
42 Neutral | HK$191.01M | -1.99 | -5.19% | 0.57% | -16.64% | 55.52% |
* Technology Sector Average
HK:1810
Xiaomi
25.92
-28.73
-52.57%
HK:0751
Skyworth Digital Holdings
4.06
0.26
6.99%
HK:2369
Coolpad Group
0.50
-0.81
-61.83%
HK:1070
TCL Electronics Holdings
17.20
7.21
72.21%
HK:0927
Fujikon Industrial Holdings Limited
0.47
-0.23
-33.14%
HK:1747
Home Control International Limited
3.60
0.06
1.55%
Xiaomi Corporate Events
Xiaomi Expands Equity Incentives With New Share and Option Grants
Aug 19, 2026
Xiaomi’s board has approved a major grant of share-based incentives, awarding 41,831,437 shares under its 2023 Share Scheme to 1,652 employees across the group. The awards, granted at no consideration and priced at HK$27.44 on the grant date...
Xiaomi Revamps Company Secretary and Governance Roles in Hong Kong
Aug 18, 2026
Xiaomi Corporation has announced changes to its corporate governance team, with the resignation of joint company secretaries Liu Hao and So Ka Man, who also stepped down from roles as authorized representative and process agent in Hong Kong. Both ...
Xiaomi Balances Profit Resilience With Heavy R&D Spend Amid Revenue Decline
Aug 18, 2026
Xiaomi reported second-quarter 2026 revenue of RMB108.9 billion, down 6.1% year-on-year, with gross profit and operating profit also declining amid geopolitical uncertainty, rising component costs and intensified competition. Nevertheless, profit ...
Xiaomi Sets August Board Meeting to Approve Interim Results and Consider Dividend
Jul 17, 2026
Xiaomi Corporation has scheduled a board meeting for August 18, 2026, to review and approve its unaudited consolidated interim results for the six months ended June 30, 2026. At the same meeting, the board will also consider the declaration of an ...
Xiaomi launches HK$4 billion automatic share buy-back under expanded repurchase plan
Jun 18, 2026
Xiaomi has launched an automatic share buy-back program as part of its previously announced HK$20 billion on-market repurchase plan, appointing an independent broker to repurchase up to HK$4 billion of class B shares on the Hong Kong Stock Exchang...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.