Since the beginning of the Lunar New Year, Xiaomi Group's Hong Kong stock price has continued to rise. On February 7, Xiaomi Group's intraday high reached 43.05 Hong Kong dollars per share, a record high, and its total market value exceeded 1 trillion Hong Kong dollars. As of the end of February, the stock price exceeded 52 Hong Kong dollars per share, and the total market value reached 1.3 trillion Hong Kong dollars. Since 2025, Xiaomi's stock price has risen by more than 40%.
High-end strategic breakthrough: mobile phones and automobiles are driven by two wheels
High-end breakthrough in the smartphone market:
Since Xiaomi launched its high-end strategy in 2020, it has gradually stabilized in the 4,000-6,000 yuan price range. The Xiaomi 15 Ultra (priced from 6,499 yuan) released in February 2025 will hit the ultra-high-end market of more than 6,000 yuan for the first time, equipped with top imaging technology and hardware configuration, directly targeting Apple's iPhone. Data from Q3 2024 showed that Xiaomi's market share in China in the price segment above US$600 increased by 88% year-on-year. Although the base was low, the growth rate was significant.
Smart car business grew beyond expectations:
Xiaomi Auto SU7 Ultra (priced at 529,900 yuan) received more than 10,000 orders within two hours after its release, completing the annual target ahead of schedule. The Q3 2024 financial report showed that the sales revenue of the automotive business increased by more than 50% month-on-month, and the gross profit margin increased to 17.1%. Lei Jun proposed a goal of delivering 300,000 vehicles in 2025. Although it faces production capacity challenges, the market is full of expectations for the replication of its "cost-effective + intelligent" model in the automotive field.
Technological innovation and AI ecological layout
AI technology deeply empowers products:
Xiaomi integrates AI photography, voice assistant and other functions in smartphones to improve user experience; the smart home ecosystem uses AI to achieve device interconnection and user behavior learning, and build a full-scene smart life. In addition, the launch of new applications such as AI painting and writing tools demonstrates Xiaomi's innovative potential in the field of content creation.
R&D investment and talent strategy:
Lei Jun recently introduced AI big model talents in a high-profile manner to strengthen technical reserves. Xiaomi Auto's autonomous driving technology is also regarded as a key scenario for AI implementation, further consolidating the market's perception of its positioning as a "technology company" rather than a "hardware manufacturer".
Capital market environment and favorable policies
Hong Kong stock technology stocks have rebounded overall:
Since the beginning of 2025, Hong Kong stock technology sectors (such as Tencent and Alibaba) have generally risen, and Xiaomi, as a high-growth target, has benefited from capital inflows. Its price-to-earnings ratio (TTM) is close to 60 times, far exceeding Alibaba (20 times) and Lenovo (12 times), reflecting the market's optimistic expectations for its future profitability.
Consumer electronics subsidy policy stimulus:
The National Development and Reform Commission has expanded the scope of digital product replacement subsidies, which is directly beneficial to Xiaomi's mobile phone business. In Q3 2024, Xiaomi's mobile phone revenue accounted for more than 50%, and the policy dividend further strengthened its core business growth.
Brand value and founder effect
Lei Jun's personal influence:
Lei Jun frequently appeared in important occasions (such as private entrepreneurs' symposiums) to increase Xiaomi's social attention. Although the "richest man's blunder" was debunked, his personal IP is deeply bound to the company's image, which has enhanced investor confidence.
The market is optimistic about the long-term ecological chain:
Xiaomi covers smart home, wearable devices and other fields through ecological chain enterprises, forming a "mobile phone × AIoT" synergy effect. In 2024, smart home revenue will grow significantly, and the scale effect of the ecological chain will become a valuation support point.
Risks and challenges: Can high growth continue?
Despite the impressive stock price performance, Xiaomi still needs to face the following challenges:
Automobile delivery pressure: SU7 Ultra's production capacity ramp-up and supply chain management are key in the short term. If delivery is delayed, it may cause market sentiment fluctuations.
Intensified competition in the high-end market: Apple and Huawei still have strong dominance in the ultra-high-end market, and Xiaomi needs to continue to prove its technical barriers and brand premium capabilities.
Risk of valuation correction: The current high P/E ratio implies higher growth expectations. If the performance growth rate slows down or the industry environment changes, the stock price may be under pressure.
Summary
The continued highs in Xiaomi's stock price are the result of the implementation of its high-end strategy, AI technology innovation, the release of policy dividends and the resonance of capital market sentiment. The key to its success lies in the transformation from a "price-performance label" to a "technology-driven high-end brand" and the opening of a second growth curve through its automotive business. However, whether this momentum can be maintained depends on the balance between future technological breakthroughs, delivery capabilities and market competition.
*Disclaimer: The content of this article is for learning purposes only and does not represent the official position of VSTAR, nor can it be used as investment advice.
