Xiaomi is an electronics and software company that focuses on mobile devices and technology.
On March 4 2015, Yu Chengdong, CEO of Huawei's consumer business, said at 'Mobile World Congress 2015' that the smartphone industry will reshuffle, with only three big players remaining in the next three to five years.
In the Internet industry, Xiaomi's product capabilities may still be controversial, but its marketing capabilities basically need not be questioned. Since its establishment in 2010, behind a large number of marketing rules xiaomi's operating figure and classic cases of its products can be seen. Xiaomi does have some advantages in making explosive models: Xiaomi's wristband has the second largest market share in the global wearable device market, Xiaomi's cumulative activation volume has exceeded 32 million,
From the author's point of view, the essence behind the continuous twists and turns after the release of Xiaomi's new phone and the questioning from users is that Xiaomi's comprehensive strength have not reached the high-end level. Xiaomi's high-end road difficulties lie on these three points: first, basic 5G communication capacity of the short board is difficult to make up; Secondly, it is difficult to control the high-end quality control and performance of the supply chain. Caused by the lack of mature self-developed chip, integration technology and system design ability.Third: the marketing-driven model is difficult to enhance the brand power.
Earnings forecast and rating: it is estimated that the company's 2019-2021 EPS will be CNY 0.50, 0.67, 0.86, respectively, corresponding to the current stock price dynamic PE is 24 times, 18 times, 14 times, maintaining a 'buy' rating.
- Smartphone shipments and gross margins are under pressure in China by 2020, and Xiaomi is in better shape than its competitors; - COVID-19 outbreak has impacted negatively on all stock of major smartphone brands; - Xiomi has maintained a 'buy' rating with a target price of HKD13.02.