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HK-listed Xiaomi falls most in 4 weeks as brokers flag downside risks

Reuters2021-08-26

** Shares of smartphone maker Xiaomi Corp fall 4.7% to HK$24.15, their biggest intraday percentage decline since July 27

** Stock on course to snap three consecutive sessions of gains

** Stock is the fifth-biggest percentage decliner in the Hang Seng Commerce & Industry Index , and the seventh-biggest decliner in the Hang Seng sub-index tracking information technology firms

** Xiaomi's second-quarter revenue rose a record 64% year-on-year, it said on Wednesday, announcing the purchase of an autonomous driving startup for $77.37 mln as it prepares to expand into the competitive market

** Citi maintains "buy" rating on the stock, says Q2 results are solid, but Xiaomi's management sees component shortages rather than competition as the biggest challenge in H1 with Q3 smartphone shipment to be affected by component shortage

** Daiwa upgrades Xiaomi to "outperform" from "hold" saying Q2 results were a solid beat with resilient fundamentals amid regulatory crackdowns in China, but also sees downside risks including soft smartphone sales and less-than-satisfactory outcomes for the EV investments

** The Hong Kong Hang Seng Commerce & Industry Index falls 1.4% and the Hong Kong Hang Seng sub-index tracking information technology firms slips 1%

** The Hang Seng Tech Index drops 1.8% and the benchmark index slides 1.1%

** Stock down 23.6% this year, as of last close

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Comment3

  • JimmyChua
    ·2021-10-13
    Yup
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  • TheRealGSY
    ·2021-08-26
    Wow
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    • Deca
      Awesome
      2021-08-26
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  • Kave
    ·2021-08-26
    [開心] [開心] 
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