Our updated Discounted Cash Flow (DCF) analysis shows that the fair value of Xiaomi's stock is approximately HKD 56.00, slightly above its current price of HKD 51.05 (as of March 28, 2025).

Xiaomi has been expanding its product offerings, with plans to double the sales of its electric vehicle model SU7 and introduce a new vehicle, the YU7, in 2025. Additionally, the company recently raised $5.5 billion through a stock offering to boost its electric vehicle production, aiming to deliver 350,000 vehicles this year. (Reuters)

Xiaomi plans to significantly increase its EV production in 2025, which is expected to positively impact its free cash flow. Despite the growth potential, risks include dependence on regulatory conditions, intense competition in the electronics and automotive sectors, and broader macroeconomic uncertainties. Investors should consider these factors before making investment decisions.

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