Xiaomi Has The Fastest Growth Rate In Two Years

Macquarie analyst Cherry Ma downgraded Xiaomi Group’s rating to underperform with a target price of HK$21.30 with a 22% drop. Cherry Ma previously rated Xiaomi as neutral. On November 24, Xiaomi announced its third-quarter financial report. Its revenue growth set the fastest record in two years.

Xiaomi’s Financial Reports

first quarter | second quarter | third quarter

In the quarter ending as of September, Xiaomi’s sales increased by 34.5% to 72.2 billion yuan ($11 billion). It is better than expected. For the first time, more than half of Xiaomi’s sales came from overseas markets. After Huawei’s overseas business contraction, Xiaomi is exploring more in-depth markets from Western Europe to India.

According to data from market research firm IDC, Xiaomi’s global smartphone shipments in the third quarter rose sharply by 42%. It is the strongest performance among all smartphone brands. During the same period, Huawei’s shipments fell sharply by 22%. Now it has to compete with brands such as Vivo for the second place in the market.

Xiaomi Mi Store UK

China Merchants Securities analysts Kevin Chen and Clint Su said in a research report that Xiaomi’s market share is expected to continue to expand. The reason is the strong demand for cheap smartphones during the epidemic and Huawei’s supply disruption. So, with the economic outlook full of uncertainties, Xiaomi’s price-competitive products are very attractive.

Since 2020, Xiaomi’s stock price has more than doubled. The financial report shows that Xiaomi’s adjusted net profit in Q3 was RMB 4.1 billion ($623 million), exceeding the previous estimate of RMB 3.3 billion ($502 million).

Xiaomi is one of the few large Chinese technology companies that have achieved strong growth in overseas and developed markets. In the third quarter, Xiaomi’s Internet of Things business overseas revenue increased by 56.2%. The business sells sweepers and other products. In India, despite the impact of the epidemic, Xiaomi still maintained its number one position in the market.

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