Xiaomi's first-quarter net profit of 6.5 billion yuan, marking a 100.8% increase year-on-year, is impressive. However, the stock dropped 3% after earnings due to potential concerns such as market saturation, competitive pressures, or profit-taking by investors.
Target Price Consideration:
1. Current Valuation: Analyze the price-to-earnings ratio and growth prospects.
2. Market Sentiment: Monitor investor sentiment and broader market conditions.
EV Market Potential:
Xiaomi’s foray into the electric vehicle (EV) market is promising. If they successfully capitalize on this trend, it could drive significant growth. Returning to HKD 25 will depend on their execution in the EV space and continued strong financial performance.
Conclusion:
Careful monitoring of Xiaomi's strategic developments and market reactions will be crucial. If their EV venture shows progress, reaching HKD 25 could be feasible.
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