---
title: "Xiaomi's (HKG:1810) earnings growth rate lags the 53% CAGR delivered to shareholders"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/270945010.md"
description: "Xiaomi Corporation (HKG:1810) shareholders have seen a 27% drop in share price last quarter, but a 259% increase over three years. The company's EPS grew 185% annually, while the share price grew 53% annually, indicating cautious investor sentiment. Insider buying in the last three months is a positive sign. Xiaomi's annual return is 15%, below the market average. Investors should consider business fundamentals and investment risks."
datetime: "2025-12-29T03:05:42.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/270945010.md)
  - [en](https://longbridge.com/en/news/270945010.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/270945010.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/270945010.md) | [繁體中文](https://longbridge.com/zh-HK/news/270945010.md)


# Xiaomi's (HKG:1810) earnings growth rate lags the 53% CAGR delivered to shareholders

**Xiaomi Corporation** (HKG:1810) shareholders might be concerned after seeing the share price drop 27% in the last quarter. But that doesn't undermine the rather lovely longer-term return, if you measure over the last three years. The share price marched upwards over that time, and is now 259% higher than it was. So the recent fall in the share price should be viewed in that context. If the business can perform well for years to come, then the recent drop could be an opportunity.

Since the long term performance has been good but there's been a recent pullback of 3.3%, let's check if the fundamentals match the share price.

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To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During three years of share price growth, Xiaomi achieved compound earnings per share growth of 185% per year. The average annual share price increase of 53% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

SEHK:1810 Earnings Per Share Growth December 29th 2025

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. This **free** interactive report on Xiaomi's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

## A Different Perspective

Xiaomi shareholders are up 15% for the year. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 3% over half a decade It is possible that returns will improve along with the business fundamentals. It's always interesting to track share price performance over the longer term. But to understand Xiaomi better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. **We've identified 1 warning sign** with Xiaomi , and understanding them should be part of your investment process.

Xiaomi is not the only stock that insiders are buying. For those who like to find **lesser know companies** this **free** list of growing companies with recent insider purchasing, could be just the ticket.

_Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges._

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