$XIAOMI-W(01810.HK) profits fell by more than 20% year-on-year, and nearly halved quarter-on-quarter. The next few quarters are expected to be similar. Memory price hikes, reduced state subsidies, and reduced vehicle purchase taxes, coupled with a sluggish market for cars, mobile phones, and home appliances, mean there won't be any short-term improvement. Additionally, increased R&D spending on AI chips and robots is burning through cash.
Some people are still hyping up the earnings report? For Xiaomi, a 'blowout' earnings report = a slight rise, earnings exceeding expectations = a drop, earnings slightly exceeding expectations = a big drop.
If the P/E ratio stays around 20, Xiaomi's stock price still has room to fall another 20.
In the long run, the possibility of a Xiaomi recovery is relatively high.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
