Update shared on04 Sep 2025
Fair value Decreased 0.19%Analysts have trimmed Xiaomi’s price target slightly to HK$66.01 amid concerns over ongoing global smartphone market weakness, though optimism about strong demand for the new YU7 electric SUV and share gains from competitors partly offsets these headwinds.
Analyst Commentary
- Analysts are concerned about ongoing weakness in the global cellphone market, leading to more conservative growth estimates.
- Despite market softness, Xiaomi is gaining share from competitors in the smartphone segment.
- Bullish analysts highlight very strong demand for Xiaomi’s new YU7 electric SUV, which is outperforming expectations.
- The YU7 offers better specifications and performance compared to Tesla’s Model Y, while being priced slightly lower, positioning it to capture significant market share.
- Analysts expect the success of Xiaomi’s EV initiatives to drive incremental growth by taking share from established competitors like Tesla in China.
What's in the News
- Xiaomi and Kingsoft Cloud entered into a three-year agreement for IDC-related services and a one-year agreement for network hardware procurement, with pricing set on an arm's-length basis referencing market conditions.
- Xiaomi’s Board will meet to review H1 2025 interim results and consider the payment of an interim dividend.
- Xiaomi launched the YU7, its first mid-size electric SUV, featuring industry-leading electrochromic smart glass sunroofs via partnership with Ambilight, positioning both companies for growth in intelligent automotive materials.
Valuation Changes
Summary of Valuation Changes for Xiaomi
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from HK$66.14 to HK$66.01.
- The Future P/E for Xiaomi has risen from 32.73x to 35.44x.
- The Discount Rate for Xiaomi remained effectively unchanged, at 8.52%.
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