The Week

XIAOMI-W surged 12.13% this week to close at HK$29.02, outpacing the Hang Seng Index by roughly 9.94 percentage points. Across just four trading days, the stock traced a steady climb. Monday (17 Aug) saw an early dip to the week’s low of HK$25.22 before a sharp recovery; Tuesday (18 Aug) brought intraday volatility, briefly touching levels near a one-month low, before a strong bounce sent it to HK$27.44. The rally continued through Wednesday (19 Aug) and Thursday (20 Aug), with the stock hitting a fresh weekly high of HK$29.10 and settling near the top of the range, just below the July peak of HK$32.4.

Key Events

The week’s narrative was driven by a pair of catalysts: the company’s interim results and a milestone in its EV business. On Monday, Xiaomi announced cumulative deliveries of its SU7 series had topped 500,000 units, setting a bullish tone. After Tuesday’s close, the firm released its interim results for the six months ended 30 June 2026. While headline numbers were broadly in line with expectations, revenue from traditional segments—smartphones and IoT—declined year-on-year, and the EV and AI division posted a second consecutive quarterly loss. Despite the profit drag, the market focused on the resilience of handset margins and pre-orders for the new Pengcheng series, which beat estimates. The stock surged over 7% intraday on Wednesday, leading the tech sector. On Thursday, Huawei-backed Luxeed opened pre-orders for its RX coupe SUV, a direct rival to the Xiaomi YU7. After the week’s close, news broke of China’s largest-ever auto recall, involving Tesla, Xiaomi and Leapmotor over hidden door-handle safety risks—an event likely to dominate sentiment next week.

Analyst Ratings

Of the 35 brokers covering Xiaomi, 23 rate it buy or outperform, five rate it hold, three rate it underperform or sell, and four have no opinion. The consensus recommendation is ‘buy’, with a consensus target price of HK$36.54, implying an upside of roughly 25.9% from the current price. The range of target prices is wide, from HK$19.2 to HK$80.08, highlighting the deep divide between those valuing the legacy business and those betting on the EV story. Within the ‘Hardware, Storage & Peripherals’ industry, Xiaomi ranks first out of nine peers for analyst ratings.

The Week Ahead

Next week’s focus will be on the fallout from the recall announcement, particularly the scope of affected Xiaomi vehicles, the cost of remediation, and any impact on the brand’s delivery trajectory. The market will also monitor initial order data for Luxeed’s RX coupe SUV, which competes directly with Xiaomi’s forthcoming YU7, as a gauge of the competitive landscape. Additionally, the company granted share awards and options this week, warranting attention to future dilution and the pace of management incentive realisation.

In Short

A potent mix of earnings and delivery milestones propelled shares toward record highs this week, signalling that the market remains willing to back the company’s transformation narrative. Yet the tension is clear: while analyst consensus is strongly positive and the target price sits well above spot, the stock now trades at 19.67x earnings and 2.41x book, with legacy revenue under pressure and the new EV business still loss-making. The path forward hinges on whether the EV division can sustain its delivery momentum through rising competition and recall headwinds, and eventually deliver the profit inflection the market is pricing in.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.