Xiaomi Market Value Reaches HK$600 Billion, Share Price Soars 6%

(Source: Xiaomi Design MDC)

The market capitalization of Xiaomi Group exceeded HK$600 billion on Sept. 1 for the first time, and its share price is now at HK$25, soaring 6%.

Pandaily reported earlier that Xiaomi released its second quarter and interim financial reports on Aug. 26, which shows that Xiaomi’s revenue in the second quarter was 53.538 billion yuan, a year-on-year increase of 3%.

Net profit totaled 3.37 billion yuan, lower than 3.63 billion yuan in the same period last year, a year-on-year decrease of 7.2%.

In terms of overall performance in the first half of the year, Xiaomi’s revenue reached 103.24 billion yuan, up 7.9% year-on-year. Net profit summed 5.67 billion yuan, down 0.7% year-on-year.

On Aug. 27, CICC raised the target price of Xiaomi Group-W (01810) to HK$30 and reiterated the rating of “Outperform the Industry.”

SEE ALSO: Xiaomi Releases Q2 Financial Report: Mid-to-high-end Smartphone Sales Surge

According to Chinese media JRJ, due to the strong growth of the overseas smartphone business and Internet service business in the second quarter, revenue and non-GAAP adjusted net profit exceeded market expectations by 4% and 43%, respectively.

CICC believes that thanks to the growth of market share in Europe and other regions, Xiaomi will become the world’s third-largest smartphone manufacturer by 2021.

On Sept. 3, Xiaomi’s chairman and CEO Lei Jun posted on his Weibo account that Xiaomi’s mobile phone business has made great progress after years of dedication.

He specifically elaborated on three reasons for Xiaomi’s success.

First, Xiaomi’s development in the high-end market is stable: the Xiaomi Mi 10 and Mi 10 Pro exceeded expectations at the beginning of the year, and the Mi 10 Ultra has recently achieved good sales after its release. Second, the first phase of the Xiaomi Smart Factory was completed, which produced the Mi 10 Ultra. Third, in the past two years, Xiaomi has focused on the European market and has become one of the top three phone suppliers in terms of market share.