THE WATCHLIST
By Peter Lisbygd
Under the current Tech Crackdown in China recently, it may be difficult for many of you to find the appetite for Chinese tech stock.
In this edition of THE WATCHLIST I will introduce you to the Chinese super brand Xiaomi, that just passed Apple and Samsung on the global mobile phone market, becoming the biggest in the global market for the first time.
Xiaomi
Stock code: 01810
Xiaomi was founded in 2010 by the legendary Lei Jun who established himself as engineer and later CEO and president for the Chinese software company Kingsoft, that the took to the stock market, before resigning in 2007.
Xiaomi is mostly known for its sleek and well-designed smartphone´s but they have many more product on shelves including laptops, electric scooters, Smart TV, wearables, and a whole lot of IOT connected consumer electronics and smart home appliances.
Xiaomi has been growing fast based on an extreme user-centric innovation model pushing our many new products that they have pre-tested in the Mi-community. They are already an established global super brand, a sector leading in many markets. Recently Xiaomi was removed from Pentagon´s Trump-Era Blacklist, giving then new marked access to the important US marked.
Despite the strong performance Xiaomi has not been able to grow the stock price to a new stable level, but if they can continue the current trend on the smartphone marked, they may be a good buy for the long run.
Graph by KrASIA. Data obtained from Counterpoint Research.
A new era
While smartphones are still most of the Xiaomi’s revenue, the company announced in March that it is investing $10 billion over the next 10 years in the hot seat for new energy vehicle. It will be interesting to see this unfold as the marked is already quite hot and other tech giants including Huawei, Baidu and Apple have also announced their entry to the NEV sector.
According to Forbes, Xiaomi is the youngest company on Fortune Global 500 list for 2021.
Photo: www.xiaomiplanets.com
*Disclaimer: We are not bankers or wealth managers, but experts with our ear to the ground, who are conveying knowledge and insights. As always, we are not advising on investment, and any mention of concrete companies should not be taken as investment advice in any capacity.
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