Robert Way
We are bullish on Xiaomi’s (OTCPK:XIACF) outlook and believe the stock still has room to run after shares appreciated 30% YTD on the back of strength in EV and amid the broader Chinese equities rally.
Our thesis on Xiaomi is
Xiaomi: Charging Ahead In The Ecosystem Race With A Spinning Flywheel
Summary
- Xiaomi's robust ecosystem, rivaling Apple and Amazon, drives growth across smartphones, IoT, and EV segments, with a 40% upside potential at a 3x forward multiple.
- Premium smartphones like Xiaomi 15 Ultra and expanding IoT products are key growth drivers, enhancing brand equity and consumer stickiness.
- The successful launch of the SU7 EV and upcoming Yu7 model highlight Xiaomi's competitive edge in the EV market, reinforcing its ecosystem.
- Valuation is conservative; Xiaomi should be valued on ecosystem strength, with potential for significant upside if key product launches succeed.
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