Position size reduced by ⅓ and first partial profits taken 👍

$1810 (-1,13 %) has evolved from a pure smartphone manufacturer into a versatile technology group whose ecosystem competes with industry leaders such as Apple and Amazon. The company is strengthening its market position and customer loyalty through strategic expansion into premium smartphones, connected IoT devices and electromobility.

Successful expansion in the premium smartphone market

Xiaomi has consolidated its position in the premium segment with models such as the Xiaomi 15 Ultra. These devices are characterized by high-quality workmanship, powerful hardware and innovative functions that appeal to both tech-savvy users and professional users. The integration of AI and advanced camera systems, often in collaboration with renowned brands such as Leica, underlines Xiaomi's commitment to quality and user experience.

Growth in the IoT and lifestyle segment

Xiaomi's IoT and lifestyle segment recorded revenue of RMB 26.1 billion in the third quarter of 2024, an increase of 26.3% year-on-year. The company offers a wide range of connected devices, including smart TVs, home appliances and wearables that are seamlessly integrated into the Xiaomi ecosystem. This strategy promotes customer loyalty and increases the brand's appeal to tech-savvy consumers.

Breakthrough in the electromobility sector

Xiaomi has taken a significant step by entering the electric mobility market. The SU7 electric vehicle exceeded the original sales targets with over 135,000 units delivered in 2024. This model successfully competes with established brands and offers an attractive price-performance ratio. The launch of the upcoming Yu7 model, which is expected to compete directly with Tesla's Model Y, could further strengthen Xiaomi's position in the EV market.

Financial performance and future prospects

In the second quarter of 2024, Xiaomi achieved record revenue of $12.2 billion, marking the third consecutive quarter of double-digit growth Analysts forecast earnings per share of $0.1197 CNY for the fiscal year 2024. Despite this positive development, the share is currently trading at a comparatively low valuation multiple of 2.3x, while competitors such as Apple and Tesla are trading at 8x. A conservative revaluation to a 3x multiple could mean a price potential of 40% to $8.48 per share. If the strategic initiatives continue to be successful, a valuation of 5x would even be possible, which would correspond to a price target of over $10 and a potential upside of 143%.

Risks and challenges

Despite the positive outlook, there are risks, particularly with regard to the acceptance of new products. The upcoming launches of the Xiaomi 15 Ultra and Yu7 will be crucial for future growth. A failure of these products could affect the growth momentum and negatively impact the share valuation. In addition, Xiaomi's EV division is currently operating at a loss; a deficit of USD 0.3 billion was recorded in the third quarter of 2024. Intense competition in the EV market and pressure to bring low-cost models to market quickly pose further challenges.

Conclusion

Xiaomi's transformation into a versatile technology company with a robust ecosystem positions the company as a serious competitor to established brands such as Apple and Tesla. The successful expansion into new business areas, especially electromobility, and the continuous innovation in the premium smartphone and IoT segment underpin the growth potential. However, investors should be aware of the existing risks and monitor market developments closely.

Today I decided to sell parts of my Xiaomi position to take first profits. I think the best scenario would be if I can buy again in the event of a major correction.

Hi Community,

I myself own shares in$1211 (-2,43 %) BYD $700 (-1,77 %) Tencent $1810 (-1,13 %) Xiaomi $9868 (+5,12 %) xpeng and $JD (-4,29 %)

All with very good EKP (before the rise)

I would like to get opinions from people with more experience on the current run in the Chinese market.

How do you assess the risk in relation to the political situation?

Therefore, I would be happy to have a lively exchange of views and / or opinions on the above mentioned stocks

Thanks in advance :)

The new SONY ($6758) (-2,78 %) CEO Totoki expressed his gratitude for his appointment and spoke about his commitment to realization of the creative entertainment to create new value and drive Sony's evolution and further growth.

The financial results for the third quarter of fiscal year 2024 were then presented, as well as an outlook for the full year:

Group sales excluding financial services increased by 7% year-on-year to JPY 3,695.7 billion. Operating profit increased by 10% to JPY 423 billion. Group sales including financial services rose by 18% to JPY 4,409.6 billion and operating profit increased by 1% to JPY 469.3 billion, a record high for the third quarter. The net profit increased by 3% to JPY 373.7 billion

For the full year 2024, the figures were as follows:

Group revenue excluding financial services was revised upwards slightly to JPY 11,900 billion. Operating profit was revised upwards by 2% to JPY 1,190 billion. Group sales including financial services were revised upwards by 4% to JPY 13,200 billion. The Operating profit was revised upwards by 2% to JPY 1,335 billion. The Net profit was revised upwards by 10% to JPY 1,080 billion.

Games and Network Services: There was a significant upswing here, with sales up 16% to JPY 1,682.3 billion, primarily due to higher hardware (especially PlayStation 5) and third-party software sales. Operating profit climbed an impressive 37% to JPY 118.1 billion, a record high for the third quarter in this segment. This increase was mainly driven by higher revenues from network services and third-party software as well as improved hardware profitability. Particularly pleasing was the 5% increase in monthly active users (MAUs) in December to 129 million, which is the highest number in PlayStation's history. A large proportion of PS5 purchasers in the quarter were new customers (over 40%) which, along with the moderate decline in the PS4 user base, contributed to MAU growth. PlayStation Plus revenue increased by 20% year-on-year, driven by higher average revenue per user thanks to the move to more expensive subscription models and price adjustments.

Music: Revenue increased 14% to JPY 481.7 billion, mainly due to higher streaming revenue and the consolidation of ePlus Inc. into Visual, Media and Platform. Operating profit increased by 28% to JPY 97.4 billion, mainly due to higher revenues. Streaming revenues also recorded growth of 9% compared to the previous year. Successes from artists such as Tyler, The Creator, Bad Bunny and Beyoncé were particularly noted. Sony Music is stepping up its efforts to promote local artists in emerging markets and strengthen relationships with independent labels, particularly in Latin America and India.

Pictures: Sales increased 9% to JPY 398.2 billion, primarily due to higher revenues from theatrical films such as "Venom: The Last Dance" and exchange rate effects. However, operating profit fell by 18% to JPY 34 billion, mainly due to higher marketing costs for theatrical films. Despite the strikes in the USA, the production of films and TV shows is recovering. The success of the anime series "Solo Leveling" on Crunchyroll was highlighted, and Sony plans to strengthen its commitment to anime fans by launching "Crunchyroll Manga".

Electronics, Technology & Services: Sales fell 4% to JPY 704.5 billion, mainly due to lower TV sales. Operating profit remained almost unchanged at JPY 77.1 billion. The mirrorless camera market experienced a stable recovery after the COVID-19 pandemic and almost reached the 2012 level in 2024. Sony is planning further cost reduction measures to increase resilience.

Imaging & Sensing Solutions: Sales remained almost unchanged at JPY 500.9 billion as lower sensor sales for mobile devices offset the positive impact of foreign exchange effects. Operating profit fell slightly by 2% to JPY 97.5 billion. Despite a decline in the current quarter due to past production problems, cumulative sales for the first nine months of the fiscal year increased by an impressive 15% year-on-year. Sony expects stable growth in the mobile sensor segment, mainly due to rising sales prices resulting from larger sensor areas and higher-end models. The slowdown in the growth of the electric vehicle market, particularly in the US and Europe, is having an impact on the automotive sensor segment. Despite this, Sony has been able to expand its customer base and improve its product performance, which has led to strong demand for EV manufacturing in China as well as a shift towards higher pixel count sensors.

Hayakawa also mentioned strategic initiatives such as the collaboration with Kadokawawhich has made Sony the largest shareholder in Kadokawa. The aim is to combine the strengths of both companies to create new value in various entertainment fields.

In the subsequent question and answer session various topics were discussed:

Totoki's role as CEO: Totoki expressed his vision for Sony in the next 10 years and how he wants to utilize the diversity of human resources and business fields to create something new. He wants to be guided by the vision and create something completely new by bringing together different areas.

Challenges and investments: The challenges Sony still faces to be globally competitive were discussed. Totoki explained that Sony has not yet reached the highest level in terms of size and profitability compared to top global players. The company's investment policy under the medium-term plan was also discussed.

Investment plans: The company highlighted the acquisition of EMI Music Publishing in 2018 as the most impressive investment. Totoki commented on the criteria for restructuring and divestments and emphasized that such decisions are made without hesitation if a business unit is not performing well and needs a change.

Duties: Strategies to minimize the impact of US tariffs were discussed, including diversification of supply chains and warehousing. Totoki assured that Sony is making preparations but has not yet made any drastic changes.

Medium-term outlook: Profit sustainability and expectations for the new management team and the capital market were discussed. In the gaming sector, the continuous increase in MAUs and the importance of network services play an important role.

Sony is and remains an exciting company. Unfortunately, nothing was reported on the development of its own e-car. I had hoped that Sony would have similar success to Xiaomi ($1810) (-1,13 %) could celebrate. After all, PS5 sales are strong and a growth driver for the company as a whole.

I hope this summary has helped you.

Stay tuned!

Hello to the community!

Before the holidays last year, I dared to take the step of liquidating my building society savings and reducing my call money account. The basic idea was a 70/30 savings plan in $IWDA (-0,26 %) and $XMME (-0,2 %) to make everything a bit more diversified!

I also bought a few individual stocks. My favorites are $1810 (-1,13 %) (has gone very well for me personally so far) and $TTWO (-2,54 %) (because of the good prospects for GTA - intended as a gamble, so don't get hung up on it)

How would you mainly rate the 70/30 strategy? Stupid move? Go ahead with it? What about the $VWRL (-0,2 %) ?

I'm already looking forward to your reviews!

$1810 (-1,13 %)

The electric car business plays a central role in the forecasts for Xiaomi:

Strong growth: in the third quarter of 2024, Xiaomi delivered 39,790 SU7 series vehicles, with a total of 67,157 deliveries since its launch in March 2024.

Revenue growth: EV segment revenue increased to RMB 9.5 billion in the third quarter of 2024, an increase of 52.1% compared to the previous quarter

Ambitious targets: Xiaomi aims to become one of the top five car manufacturers in the world in the next 15 to 20 years.

Production expansion: Goldman Sachs forecasts that Xiaomi will sell 350,000 electric cars in 2025 and 655,000 in 2026.

Market position: In October 2024, the SU7 took first place in several rankings as the best-selling sedan in mainland China.

Financial contribution: In Q3 2024, the Smart EV segment generated revenue of RMB 9.7 billion with a gross profit margin of 17.1%.

These developments in the electric car business contribute significantly to the positive outlook for Xiaomi and are seen as a key growth driver for the company.

Greetings.

I'm currently somewhat liquid again and looking around for opportunities.

The FOMO has really hit me hard and is making me very unhappy. But I'm sure a few more opportunities will come up.

Why?

I've been on the stock market since 04/2024 (very short-term) and have had a few companies on my radar since then. On the one hand $HIMS (+4,16 %) which I was advised against by some analyses (price at around €13)

Then it was $1810 (-1,13 %) Xiaomi at €2.80

I bought a cell phone from Xiaomi 3 years ago and was more than impressed. But I didn't buy it because I read that it was stupid to invest in Chinese companies.

At $PLTR (+3,47 %) I waited for a correction at €17 and then unfortunately missed the train completely and lost sight of it.

The last one was $RKT RocketLab, which I took a look at at €10. I assumed that they had no future here, as Space X would take over the market as a more than major competitor.

$MC (-2,24 %) I actually missed out on this too, as the share price rose faster than I would have liked.

I was on the verge of investing in all 5 and blocked myself from doing so. That's why it really hurts to see other people's returns and not have done it. (I wish everyone here all the best) That's what the community is for.

The pain will remain, but I am currently looking to the future.

My current watchlist consists of:

$AMD (+0,74 %) I am still waiting for a bottom to form here. But I don't think it will fall significantly. With the new Playstation and the huge demand that Nvidia cannot meet on its own and the decreasing competition from Intel, I think it is very interesting.

Target price to buy/tranche at €105 or €115, depending on how it develops.

$GRAB (-0,34 %) I wanted to get in here a few days ago and suddenly the +15% came.

In my opinion, it has a lot of potential and is very well known in certain regions. Competition is also limited and Uber is not interested in the market.

Target price to buy/tranche at 5€

$RKLB (-0,29 %) will hopefully come back to €20. That's where I would get in. I see a lot of opportunities for Space in the long term, as it could be a future trend.

$MELI (-2,34 %) If it corrects again and at $NU (+1,01 %) I am currently waiting again.

Also exciting is $SUNN (+3,36 %) or $BABA (-0,46 %)

What is your opinion? And what is on your watchlist and when would you buy? I find what you have on your radar pretty exciting at the moment.

Held for 3-4 years, nothing happened and only went downhill.

Congratulations to all Diamond Hands!

(Sale from January 31, 2024)