Is Xiaomi A Buy After Its Q3 24 Earnings?

koolgal
11-20 09:57

🌟🌟🌟Xiaomi $XIAOMI-W(01810)$  share price has been on a tear as it is up 16.7% in the past month and a huge 82% year todate, making it one of  the best performing Chinese stocks this year.

On November 18, Xiaomi announced an excellent Q3 24 Earnings report where its revenue for the quarter is up 30.5% year over year to RMB 92.5 billion.  Its Gross Profit Margin is 20.4%.  Adjusted Net Profit has increased by 4.4% year over year.   Its Cash Resources is up by 18.7% year over year to RMB 151.6 billion.

From its humble beginnings in April 2010, Xiaomi was founded by Lei Jun along with 6 associates.  In August 2011 Xiaomi released its first smartphone and by 2014, Xiaomi had the largest market share of smartphones in China.

Since then Xiaomi has branched out into consumer electronics and smart manufacturing company with smartphones and smart hardware connected by an IoT platform at its  core.

As of 2023 Xiaomi ranked among the top 3 in the global smartphone market in terms of smartphone shipments according to Canalys.  Xiaomi has also established the world's leading consumer AIoT (AI + IoT) platform with 739.7 million smart devices connected to its platform, excluding smartphones, tablets and laptops as of December 31 2023.  Xiaomi products are now present in more than 100 countries and regions around the world. 

In Q3 24 Smartphone and AIoT revenue is up 16.8% year over year to RMB 82.8 billion with a Gross Profit Margin of 20.8%. 

The revenue for Smart EV and other new initiatives is up by a huge 52.3% year over year to RMB 9.7 billion for the quarter.  The Gross Profit Margin was 17.1%, an increase of 1.7% percentage point. 

Xiaomi has achieved No. 3 Global ranking in smartphone sales at 13.8% global market share.  

Xiaomi is a leading AIoT platform with 861.4 million connected devices, a growth of 23.2% year over year.  There is an increase of 17.1 million users with 5 or more connected devices, up 24.9% year over year. 

Xiaomi has a Broad User Base with 685.8 million Global Monthly Active Users, an increase of 10.1% year over year.  In Mainland China, the Monthly Active Users are 167.9 million, an increase of 10.6% year over year. 

On March 28 2024, Xiaomi launched its first EV  - Xiaomi SU7.  Since then Xiaomi has produced 100,000 Xiaomi SU7 in just 230 days.  This is the fastest new  EVs produced on record.  Xiaomi now strives to deliver 130,000 vehicles in 2024.

Xiaomi is now planning to launch the Xiaomi SU7 Ultra, a premium model in March 2025.  The new model has a 1.98 secs of 0-100 km/H in acceleration with 1548ps maximum horsepower.  Its top speed is 350 km/H.  Xiaomi has already received 3680 units in pre order within the first 10 minutes of its pre launch.  The price of the Xiaomi SU7 Ultra is RMB 814,900.

In October Xiaomi launched the new Xiaomi 15 Series which is embedded with the Xiaomi HyperOS 2.  This latest Xiaomi smartphone has since achieved 1 million units sales volume, much faster than the previous generation.

Xiaomi Smart Large Home Appliances continues with robust growth momentum.  Air conditionee shipments are up 55% year over year and exceeded 1.7 million units in Q3 24.  Refrigerator shipments is up 20% year over year to 810,000 units.  Washing machine shipment is up 50% year over year to over 480,000 units. 

Looking ahead, Xiaomi's revenue is forecast to grow 14% per annum on average for the next 3 years compared to a 11% growth forecast for the Tech industry in Asia.

Analysts are bullish on Xiaomi with a Buy rating, Target price of HKD 29.97, an upside potential of 7%.

Xiaomi is firing on all cylinders due to the capable leadership CEO and Founder Lei Jun.  I believe that Xiaomi is a great company to invest in as it has lots of exponential growth ahead. 

As Warren Buffett likes to say "It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price.  Xiaomi is indeed a wonderful company to invest in for the long term. 

@Daily_Discussion  @TigerStars  @Tiger_comments @MillionaireTiger  @CaptainTiger  


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Comments

  • joozy
    11-20 10:36
    joozy
    Xiaomi's strong earnings and growth outlook make it an attractive long-term investment.
    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
    • koolgal:Β 
      Have a wonderful week ahead πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
    • koolgal:Β 
      Thanks for sharing your valuable insights 😍😍😍
    • koolgal:Β 
      I agree with you that Xiaomi is really an excellent company to invest in.
    • koolgal:Β 
      Yes you are absolutely right!
  • icycrystal
    11-20 11:02
    icycrystal
    thanks for sharing
    • koolgal:Β 
      All the best πŸ€πŸ€πŸ€
    • koolgal:Β 
      Have a beautiful day πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
    • koolgal:Β 
      Thanks for your support πŸ™
    • koolgal:Β 
      My pleasure 😍😍😍
  • 不死鸟.
    11-20 11:32
    不死鸟.
    θ°’θ°’εˆ†δΊ«
    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
    • koolgal:Β 
      Have a wonderful day 🌈🌈🌈
    • koolgal:Β 
      My pleasure 😍😍😍
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