Bloomberg data shows that Xiaomi shares have a total of 33 “buy” ratings, 8 “hold” ratings and 1 “sell” rating.
After the Hong Kong stock market on May 20, Xiaomi Group (1810.HK, hereinafter referred to as “Xiaomi”) will announce the first quarter of 2020 results. According to consensus analyst estimates compiled by Bloomberg, Xiaomi’s Q1 revenue is expected to reach 47.767 billion yuan, an increase of 9.4% year-on-year, and adjusted net profit of 2.126 billion yuan, an increase of 2% year-on-year.
Drawing (Source: Company Financial Report, Bloomberg Expectations)
Looking back at the previous quarter, Xiaomi returned to an accelerated growth track. Revenue reached 56.47 billion yuan, a year-on-year increase of 27.1%, achieving a year-on-year growth rate since the first quarter of 2019 The new high, adjusted net profit of 2.34 billion yuan, an increase of 26.5%.
Specifically, Xiaomi ’s revenue growth rate picked up last quarter, mainly driven by its two main business lines: smartphone business and internet service.
Among them, the smartphone business revenue was 30.8 billion yuan, a year-on-year increase of 22.8%, the highest growth rate since the third quarter of 2018. The smartphone shipments for the quarter were 32.6 million units, an increase of 30.4% year-on-year, the highest growth rate since the second quarter of 2018, IDC data shows that Xiaomi ’s overseas market shipments in the fourth quarter of 2019 increased by 35.5% year-on-year, becoming the driving force for Xiaomi ’s smartphone business revenue growth Maximum power.
In addition, Xiaomi’s Internet service revenue in the last quarter was 5.7 billion yuan, an increase of 41% year-on-year. The year-on-year growth rate has rebounded significantly from the previous two quarters. The value-added services of games, finance, e-commerce and other Internet value-added services have a significant boost.
According to last quarter ’s financial report, Xiaomi ’s overseas revenue has reached 46.8%. With the spread of the March epidemic in the world, the extent to which Xiaomi ’s domestic and foreign business will be affected will become the focus of market attention.
Xiaomi disclosed in the last quarter ’s financial report that in view of the spread of the epidemic in many countries and regions, it may cause overseas market demand to be delayed. Overseas demand will be affected in the second quarter of 2020, but Xiaomi believes that the impact is generally controllable. Long-term growth of overseas businessThe long-term potential remains optimistic.
Furthermore, Xiaomi President Wang Xiang mentioned in the earnings conference call, “Our judgment is that our Internet business has been limited by the epidemic.”
With the disclosure of data from the global smartphone market in the first quarter, the visibility of Xiaomi ’s Q1 performance in 2020 is also improving.
IDC data shows that Xiaomi ’s global smartphone shipments in the first quarter of 2020 were 6.1%, much higher than the overall market level of -11.3%, and its market share reached 10.7%, which was a new high for Xiaomi.
On May 18, Credit Suisse upgraded the rating of Xiaomi ’s stock from “Neutral” to “Outperform”. It said that Xiaomi ’s overseas sales recovery was better than expected, and its market share continued to increase. , Raised Xiaomi’s smartphone shipment forecast for this year and next year by 7% and 10%, respectively.
In addition, DBS Bank also said in a research report on May 8 that the market is worried about the slowdown in global smartphone demand, but it is expected that Xiaomi ’s market share will be from Increased 9% of the year to 10% in 2021, and can obtain the original Huawei overseas market share. It is also expected that Xiaomi ’s smartphone business revenue growth rate will be 2% and 20% in 2020 and 2021, mainly due to 5G upgrades Cyclical trend.
As of press time, Bloomberg data shows that Xiaomi shares have a total of 33 “buy” ratings, 8 “hold” ratings and 1 “sell” rating, with a 12-month average target price of 13.17 Hong Kong dollars.
On May 18, Hong Kong stocks closed, and Xiaomi ’s stock price reported HK $ 12.04, an increase of 0.67%, and its market value reached HK $ 299.661 billion.