Investors May Be Too Optimistic About Xiaomi's EV Business -- Market Talk

Dow Jones03-20

0900 GMT - Investors might be too optimistic about Xiaomi's EV business, Morningstar analyst Dan Baker writes in a note. The company's shares look overvalued, with the current P/E ratio at around 52X well above its historical range, Baker says. He thinks current valuations reflect an overly optimistic view of the EV business, they say. Morningstar forecasts five-year average revenue growth of 15% for Xiaomi, and projects its EV business to sell around 570,000 cars per year by 2029. Morningstar estimates the company's EV gross margin to rise to 25% by 2028. It raises its fair value estimate on the stock by 30% to HK$30.00. Shares last closed at HK$56.50.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

March 20, 2025 05:00 ET (09:00 GMT)

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Morningstar estimates the company's EV gross margin to rise to 25% by 2028. It raises its fair value estimate on the stock by 30% to HK$30.00. 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The company's shares look overvalued, with the current P/E ratio at around 52X well above its historical range, Baker says. He thinks current valuations reflect an overly optimistic view of the EV business, they say. Morningstar forecasts five-year average revenue growth of 15% for Xiaomi, and projects its EV business to sell around 570,000 cars per year by 2029. Morningstar estimates the company's EV gross margin to rise to 25% by 2028. It raises its fair value estimate on the stock by 30% to HK$30.00. Shares last closed at HK$56.50.(jiahui.huang@wsj.com; @ivy_jiahuihuang) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 20, 2025 05:00 ET (09:00 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0499858438.USD","symbol_name":"NINETY ONE GSF ASIA PACIFIC EQUITY OPPORTUNITIES \"A\" (USD) INC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2520480627","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2520480627","pubTimestamp":1742461200,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0900 GMT - Investors might be too optimistic about Xiaomi's EV business, Morningstar analyst Dan Baker writes in a note. 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The company's shares look overvalued, with the current P/E ratio at around 52X well above its historical range, Baker says. He thinks current valuations reflect an overly optimistic view of the EV business, they say. Morningstar forecasts five-year average revenue growth of 15% for Xiaomi, and projects its EV business to sell around 570,000 cars per year by 2029. Morningstar estimates the company's EV gross margin to rise to 25% by 2028. It raises its fair value estimate on the stock by 30% to HK$30.00. Shares last closed at HK$56.50.(jiahui.huang@wsj.com; @ivy_jiahuihuang) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  March 20, 2025 05:00 ET (09:00 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.32.1","shortVersion":"4.32.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2520480627"}