Xiaomi-W (01810) shares have climbed more than 4% today, extending the weekly gain to over 13%. As of the latest trading, the stock is up 4.32% to HK$28.96, with turnover reaching HK$3.812 billion.
On the news front, Xiaomi reported second-quarter total revenue of RMB 108.9 billion, a sequential increase of 9.9%, while adjusted net profit came in at RMB 6.2 billion, up 2.4% quarter-on-quarter. Despite persistently high prices for core components such as memory chips, the company has taken a proactive approach in its smartphone business by trimming shipments, optimizing product mix, and raising selling prices. This strategy pushed the smartphone average selling price (ASP) to an all-time high, with gross margin of 8.5% beating market expectations.
CSC Financial noted that in July, the company unveiled the Pengcheng N70 Max and N90 Max, two extended-range SUVs built on the Kunlun architecture, with a market launch expected in September. These models are anticipated to serve as a key catalyst for the second half of the year. The brokerage advises investors to watch for the product cycle opportunities tied to the September Pengcheng series debut, as well as profit elasticity driven by easing storage costs and automotive scale effects.
Guotai Junan Securities also believes that with improving cost dynamics and the boost from new vehicle launches in the second half, the company could be approaching a fundamental turning point.
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