SEHK:1810

Stock Analysis Report

Executive Summary

Xiaomi Corporation, an Internet company, provides hardware, software, and Internet services in Mainland China and internationally.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Xiaomi's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

1810

-0.04%

HK Tech

2.9%

HK Market


1 Year Return

-28.4%

1810

-20.9%

HK Tech

0.7%

HK Market

Return vs Industry: 1810 underperformed the Hong Kong Tech industry which returned -20.9% over the past year.

Return vs Market: 1810 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1810IndustryMarket
7 Day-0.2%-0.04%2.9%
30 Day-5.8%-5.1%-2.5%
90 Day-4.0%-6.2%-5.4%
1 Year-28.4%-28.4%-20.2%-20.9%4.4%0.7%
3 Yearn/a-1.1%-9.9%17.0%5.2%
5 Yearn/a-31.2%-44.8%20.2%0.2%

Price Volatility Vs. Market

How volatile is Xiaomi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Xiaomi undervalued compared to its fair value and its price relative to the market?

16.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 1810 (HK$8.93) is trading above our estimate of fair value (HK$3.78)

Significantly Undervalued: 1810 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1810 is poor value based on its PE Ratio (16.8x) compared to the Tech industry average (9.8x).

PE vs Market: 1810 is poor value based on its PE Ratio (16.8x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1810 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 1810 is overvalued based on its PB Ratio (2.5x) compared to the HK Tech industry average (0.8x).


Next Steps

Future Growth

How is Xiaomi forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1810's forecast earnings growth (21.1% per year) is above the savings rate (2%).

Earnings vs Market: 1810's earnings (21.1% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1810's revenue (18% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 1810's revenue (18% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1810's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Xiaomi performed over the past 5 years?

38.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1810's earnings have grown significantly by 38.5% per year over the past 5 years.

Accelerating Growth: 1810 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1810 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (4%).


Return on Equity

High ROE: 1810's Return on Equity (14.3%) is considered low.


Return on Assets

ROA vs Industry: 1810 has a higher Return on Assets than the Tech industry average last year.


Return on Capital Employed

ROCE Improving: 1810 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Xiaomi's financial position?


Financial Position Analysis

Short Term Liabilities: 1810's short term assets (CN¥115.7B) exceeds its short term liabilities (CN¥69.2B)

Long Term Liabilities: 1810's short term assets (115.7B) exceeds its long term liabilities (12.2B)


Debt to Equity History and Analysis

Debt Level: 1810's debt to equity ratio (17.9%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1810's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1810's debt is well covered by operating cash flow (24.5%).

Interest Coverage: 1810 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1810 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1810's debt is covered by short term assets (assets are 8.393170x debt).


Next Steps

Dividend

What is Xiaomi's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.3%industryaverage3.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1810's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1810's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1810's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1810's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1810's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Xiaomi's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Jun Lei (50yo)

0yrs

Tenure

0

Mr. Lei Jun serves as the Chairman of the board and Chief Executive Officer of Xiaomi Corporation and has been its Executive Director since May 3, 2010. Mr. Lei co-founded Xiaomi Corporation in 2010. He is ...


Management Age and Tenure

1.2yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 1810's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

51yo

Average Age

Experienced Board: 1810's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: 1810 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCN¥242,307,94226 Aug 19
Bin Lin
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares26,706,200
Max PriceCN¥9.07
SellCN¥49,571,63426 Aug 19
Bin Lin
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares5,559,600
Max PriceCN¥8.92
SellCN¥80,676,57626 Aug 19
Bin Lin
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares9,047,600
Max PriceCN¥8.92

Ownership Breakdown


Management Team

  • Jun Lei (50yo)

    Founder

    • Tenure: 0yrs
  • Xiang Wang (57yo)

    Senior Vice President of Global Business

    • Tenure: 0yrs
  • Bin Lin (51yo)

    Co-Founder

    • Tenure: 9.4yrs
  • Wanqiang Li (42yo)

    Co-founder

    • Tenure: 0yrs
  • Shou Chew (36yo)

    Senior VP & CFO

    • Tenure: 0yrs
  • Yan Qi (70yo)

    Senior VP of Leading Platform

    • Tenure: 0yrs
  • Murlikrishnan B.

    Chief Operating Officer of India

    • Tenure: 1.3yrs
  • Steve Lin

    Joint Company Secretary

    • Tenure: 1.5yrs
  • Anuj Sharma

    Marketing Head for India

    • Tenure: 1.1yrs
  • Yan Luo

    General Manager

    • Tenure: 0.6yrs

Board Members

  • Jun Lei (50yo)

    Founder

    • Tenure: 0yrs
  • Eric Wong (58yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Dalai Xu Koh (47yo)

    Non Executive Director

    • Tenure: 6.2yrs
  • Bin Lin (51yo)

    Co-Founder

    • Tenure: 9.4yrs
  • Chen Dongsheng (61yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Liu Qin (46yo)

    Non-Executive Director

    • Tenure: 9.4yrs
  • Timothy Tong (66yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs

Company Information

Xiaomi Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xiaomi Corporation
  • Ticker: 1810
  • Exchange: SEHK
  • Founded: 2010
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$212.443b
  • Shares outstanding: 23.92b
  • Website: https://www.mi.com

Number of Employees


Location

  • Xiaomi Corporation
  • Rainbow City Office Building
  • 68 Qinghe Middle Street
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1810SEHK (The Stock Exchange of Hong Kong Ltd.)YesClass B Ordinary SharesHKHKDJul 2018
XIAC.FOTCPK (Pink Sheets LLC)YesClass B Ordinary SharesUSUSDJul 2018
3CPDB (Deutsche Boerse AG)YesClass B Ordinary SharesDEEURJul 2018
XIAC.YOTCPK (Pink Sheets LLC)UNSPON ADS EACH REP 5 ORD SHSUSUSDAug 2018
3CPADB (Deutsche Boerse AG)UNSPON ADS EACH REP 5 ORD SHSDEEURAug 2018

Biography

Xiaomi Corporation, an Internet company, provides hardware, software, and Internet services in Mainland China and internationally. It operates through Smartphones, IoT and Lifestyle Products, Internet Serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:57
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.