Huatai Securities maintains "Buy" rating on Xiaomi, optimistic about its continued investment in hard technology

Summary

Huatai Securities maintains a ‘buy’ rating on Xiaomi, highlighting its continued investment in hard technology such as chips, AI, and systems, which is expected to strengthen its ‘human-car-home’ ecosystem.

Impact Analysis

So basically, Huatai Securities is doubling down on Xiaomi’s strategic pivot towards hard technology investments, which they believe will underpin the company’s ‘human-car-home’ ecosystem strategy. This isn’t just about maintaining a ‘buy’ rating; it’s about recognizing Xiaomi’s long-term vision to integrate its product lines more cohesively. The timing is interesting, given the recent product launches and Xiaomi’s aggressive push into the automotive sector with custom services for its vehicles Zhitong+ 2. The market might be underestimating the scale of Xiaomi’s ambition here. While the technical analysis shows a mixed picture with a long-term downtrend but a medium-term uptrend , the strategic investments in technology could be a game-changer. The risk is execution—can Xiaomi deliver on these ambitious plans without overextending itself financially? If they can, the upside could be significant, especially if they manage to capture more market share in the high-end smartphone and electric vehicle markets Zhitong.