Xiaomi becomes one of China’s most expensive tech stocks after share price surge
The quadrupling of Xiaomi Corp.’s share price in a little more than a year has made it one of China’s most-expensive tech stocks, raising the stakes for its upcoming results and electric SUV launch.
The Hong Kong-listed stock is trading at 38 times forward earnings estimates, about double the level for Tencent Holdings Ltd. and even above US giants including Apple Inc. Xiaomi’s shares have surged around 340% from a February 2024 low, adding more than $130 billion to its market value, News.Az reports, citing Bloomberg.
The company won investors over by duplicating its smartphone success in China’s crowded EV market. Now it needs to show that its share performance is justified, amid market caution over the firm’s ability to execute lofty growth plans and maintain its sales trajectory.
The planned summer launch of its Tesla-like YU7 model will be a “critical test” of Xiaomi’s ability to scale production to meet demand, said Yuan, who was an early bull on the company’s entry into China’s competitive EV market.
The planned summer launch of its Tesla-like YU7 model will be a “critical test” of Xiaomi’s ability to scale production to meet demand, said Yuan, who was an early bull on the company’s entry into China’s competitive EV market.
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