Xiaomi Achieves Record High in Shares Following Strong Q4 Revenue Performance
Xiaomi’s shares rose 3.1% to HK$59.45, marking record highs and a fifth consecutive gain. The company reported a nearly 50% revenue surge in Q4, surpassing estimates, and revised its EV delivery target upward. Plans for significant store expansion support continued growth, while Citi maintains a “Buy” rating with a revised target price. The stock is up 67.4% year-to-date.
Xiaomi, the prominent Chinese technology firm, witnessed a robust increase in its share price, reaching a record high of HK$59.45, marking a 3.1% rise. This surge represents the company’s fifth consecutive day of gains and highlights its strong market position as the world’s third-largest smartphone manufacturer.
On Tuesday, Xiaomi reported nearly a 50% increase in its fourth-quarter revenue, significantly exceeding analyst expectations. Additionally, the company announced an upward revision of its electric vehicle delivery target from 300,000 to 350,000 units for the current year, reflecting its ambitious growth plans.
Xiaomi is also set to broaden its market presence by expanding its store network within China and aims to establish 10,000 new Mi Home stores internationally over the next five years. This initiative aligns with the company’s strategic vision to enhance consumer accessibility to its products and services.
Citi Group has reaffirmed its “Buy” rating on Xiaomi shares and raised the target price from HK$51.7 to HK$73.5, despite noting that while the fourth-quarter results surpassed expectations, gross margins were negatively impacted by increased installation service costs. The Hang Seng Tech Index experienced a decrease of 0.8%, while the broader Hang Seng Index saw a marginal increase of 0.1%. Year-to-date, Xiaomi’s stock has appreciated by 67.4%.
In conclusion, Xiaomi’s substantial revenue growth in the fourth quarter signifies its strong market performance and strategic expansion plans. The company’s initiatives to increase electric vehicle deliveries and store openings, coupled with favorable analyst ratings, suggest a promising outlook. Despite some challenges related to margin pressures, the impressive stock performance underscores investor confidence in Xiaomi’s future.
Original Source: www.tradingview.com
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