XIAOMI’S shares surged to a fresh record in Hong Kong on Friday (Feb 7), as new product launches and benefits from China’s nationwide subsidy programme burnished the company’s sales outlook.
The stock has rallied 12 per cent this week, after the company said it will release two new products – a high-end SU7 Ultra vehicle and 15 Ultra phone – by month-end. Its existing smartphones also got a boost from China’s increased consumer subsidies.
HSBC Holdings analyst Frank He raised the forecasts of the company’s smartphone shipments by 2 per cent in 2025, and by 3 per cent for 2026. The subsidy programme’s inclusion of wearable devices is another near-term driver for Xiaomi’s growth, he wrote in a note, adding that the company may also benefit from rapidly declining AI costs, triggered by the launch of AI model DeepSeek R-1.
“Given Xiaomi owns one of the most well-established AIoT device platforms worldwide, we are more positive on its growth outlook,” he said.
Chinese tech stocks have surged to the brink of a bull market after Deepseek sparked investor excitement around China’s Internet firms.
Xiaomi’s stock jumped more than 120 per cent in 2024 on a stronger-than-expected performance after launching in China’s EV market, outperforming global peers such as BYD and XPeng That growth looks set to continue this year, with HSBC expecting a rise in delivery volumes as factory capacity expands. BLOOMBERG
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