Xiaomi Faces Negative Shift in Analysts' Outlook
Xiaomi, the Chinese tech giant, experienced a setback in Hong Kong trading on Thursday as its share price dropped by nearly four percent. The decline was primarily due to market concerns over a slowdown in earnings growth from its core businesses such as smartphones and IoT in the second half of 2025.
Analysts from Jefferies and Nomura have expressed doubts about the short-term profit momentum of Xiaomi. JPMorgan highlighted that Xiaomi's smartphone revenue growth is expected to slow to about 5% in 2025, and although the IoT business revenue is forecast to grow by 36%, both segments face a noticeable slowdown in the latter half of the year.
The electric vehicle (EV) delivery volume has plateaued at around 30,000 units per month since March 2025, despite strong demand for the new model YU7. These factors led JPMorgan to downgrade the stock to Neutral and contributed to the 10% share price plunge recently.
The fall in Xiaomi's share price resulted in a new low for the company's shares. It is important to note that this negative impact on Xiaomi's stock price was due to the comments made by analysts from Jefferies and Nomura.
[1] Source: Financial Times, 15th April 2025.
Xiaomi's financial situation may be affected by concerns over the slowdown in earnings growth from its core businesses, such as smartphones and IoT, as well as the technology sector. Analysts from Jefferies and Nomura have expressed doubts about the short-term profit momentum of Xiaomi, and their comments have contributed to a decline in Xiaomi's share price.
