New EV and smartphone launches drive Xiaomi stock to new heights

BEIJING: Xiaomi Corp’s shares reached a new record high in Hong Kong on Friday, driven by new product launches and the positive impact of China’s nationwide subsidy program on the company’s sales prospects.

The stock increased by 12% this week after Xiaomi announced the upcoming release of two new products—a high-end SU7 Ultra vehicle and the 15 Ultra smartphone—by the end of the month. Additionally, the company’s current smartphone line-up benefited from enhanced consumer subsidies in China.

HSBC analyst Frank raised his forecast for Xiaomi’s smartphone shipments, projecting a 2% increase for 2025 and a 3% increase for 2026. He noted that the inclusion of wearable devices in the subsidy program could serve as a short-term growth driver for the company.

Also read: Xiaomi’s EV factory expansion to be completed by mid-2025

Furthermore, a significant drop in AI costs, following the launch of the AI model DeepSeek R-1, could also be advantageous for Xiaomi. “With Xiaomi boasting one of the most robust AIoT device platforms globally, we have a more optimistic view on its growth potential,” he stated.

Chinese technology stocks are on the verge of entering a bull market, fuelled by the excitement surrounding DeepSeek’s impact on China’s internet sector.

In 2024, Xiaomi’s stock soared over 120% due to a better-than-expected performance following its entry into China’s electric vehicle market, outpacing competitors like BYD Co. and XPeng Inc. HSBC anticipates that this growth trajectory will persist, expecting an increase in delivery volumes as factory production capacity expands.