Xiaomi share presentation my deep dive (20th points) 🚗📱💻📷⚡️💡🇨🇳
@EpsEra
@Multibagger
@Tenbagger2024
Foreword
Demand and interest in Xiaomi has increased significantly in recent months. The company is no longer just a smartphone manufacturer, but is building a broad technology and product ecosystem that covers many areas of our everyday lives.
It is precisely for this reason that I have set myself the task of analyzing Xiaomi in detail and introducing the company to you in a deep dive. I am not only interested in the financial side, but also in the quality of the products, the business model and the long-term strategy.
At the end of this analysis, I am particularly looking forward to your opinion on Xiaomi.
👀 Personal observation in advance
(Important to mention)
What I've noticed in particular recently is the increasing attention surrounding Xiaomi's entry into the automotive sector.
One example of this is a video by JP, one of the best-known German car experts in the tuning and performance sector. In his video, he is very positive about Xiaomi's vehicles and emphasizes the high quality, the technical innovations and the strong overall package of the cars.
This is interesting, as praise from this corner is not a matter of course and shows that Xiaomi is also taken seriously outside the traditional tech and smartphone world.
It is precisely this combination of technology, innovation and growing perception outside the tech bubble that makes Xiaomi an exciting object of analysis for me.
📊 1. key data, business model & key figures
1.1 Key data - Xiaomi Corporation
Company name:
Xiaomi Corporation
Founding year:
April 06, 2010
CEO / Chairman:
Lei Jun (Founder, Chairman & CEO)
Initial public offering:
July 09, 2018
Hong Kong Stock Exchange
Ticker: 1810.HK
Head office:
Beijing (Haidian District), China
ISIN:
KYG9830T1067
Employees:
approx. 43,000 - 46,000 (as of 2025)
1.2 Business model - Xiaomi Corporation
What does Xiaomi do?
Xiaomi is a global technology company with a focus on smartphones, connected devices (AIoT), software services and, more recently, electric vehicles. The company combines hardware with software and services in its own ecosystem.
How does Xiaomi earn money?
Xiaomi generates its revenue through several business areas:
Smartphones
The biggest revenue driver. Sales of smartphones in various price categories - from entry-level devices to the premium segment.
AIoT and lifestyle products
These include smart TVs, wearables, smart home devices, household appliances, routers, scooters and other networked products.
Internet services
Revenue from advertising, apps, games, subscriptions and software services. This area has the highest margins.
Smart EV and new initiatives
Electric vehicles (e.g. Xiaomi SU7), software platforms, chips and new technologies. Currently still investment-intensive.
Sales distribution (approximate):
Smartphones: around 50-55%
AIoT & Lifestyle: around 25-30%
Internet services: around 10-15%
EV & new initiatives: currently under 10 %, growing strongly
Where does Xiaomi sell its products?
China (domestic market)
India (one of the largest foreign markets)
Europe (strong in Germany, Spain, Italy)
Southeast Asia, Latin America, Africa
Recurring revenue?
Yes, mainly through internet services, advertising, software, cloud and platform services within the Xiaomi ecosystem.
Why could Xiaomi benefit?
Growing demand for connected devices
Expansion of the service business with high margins
Premiumization of smartphones
EV market as a long-term option
Strong ecosystem and brand loyalty
1.3 Key data - Xiaomi Corporation (as at 2024 / 2025)
Country: China
Industry: Technology (consumer electronics, AIoT, software, electromobility)
Market capitalization: approx. USD 80-90 billion
Turnover 2024: approx. CNY 365 billion (around USD 50 billion)
Earnings (net profit 2024): approx. CNY 23-24 billion
Free cash flow: positive (several billion USD, fluctuating due to EV investments)
Cash and cash equivalents: high double-digit billion amount in CNY
Debt: moderate, well covered by cash
Balance sheet quality: solid equity ratio, no over-indebtedness
📈 2. assessment through apps / scores
Note: I cannot call up specific current Traderfox scores etc. in real time, but a qualitative assessment can be made based on growth, profitability and valuation:
🔹 Quality: strong market position, diversified business, regular profits
🔹 Growth: Strong sales & profit growth 2024-2025
🔹 Valuation: Based on industry indicators, often moderate to high P/E ratio (depending on market environment)
→ Overall, a score in the upper-medium quality and growth range is likely.
3rd valuation - Xiaomi Corporation (detailed, without table)
P/E RATIO (TTM):
approx. 30-35
→ Reflects strong growth, but no extreme hype
P/E ratio (forward P/E ratio):
approx. 20-23
→ significant profit increases expected
P/E ratio (price-to-sales):
approx. 2.0-2.3
→ Cheaper than many US tech companies
KCV (price-to-free cash flow):
approx. 18-22
→ solid, EV investments are a burden in the short term
PEG ratio:
approx. 0.9-1.1
→ Valuation fair in relation to growth
FCF yield:
approx. 4-5%
→ Decent for a growth company
Owner earnings:
positive and rising
P/E ratio history:
2021 very high (hype phase)
2022 significant decline
2023-2024 normalization
2025e Forward P/E ratio significantly lower
Valuation compared to the industry:
Cheaper than Apple
More expensive than traditional hardware manufacturers
Valuation reflects mix of hardware + services
Safety margin:
Available if service business continues to grow and EV losses remain controlled
📉 4. chart analysis (basics)
Since I cannot display charts live, here are the critical points:
✔ Support levels - Observe 50/100/200-day averages ✔
✔ Trend structure - Whether higher highs / higher lows are recognizable ✔
✔ Momentum indicators - consider RSI, MACD for timing ✔
✔ Volume - analyze confirmation of demand during breakouts
Charts are tools, not a buying decision.
🛡️ 5. moat
Strengths
✅ Strong global brand & large user base
✅ Integrated ecosystem (HyperOS + AIoT)
✅ Good profitability in core areas
✅ Strong growth in IoT & services
Weaknesses / risks
❌ Relatively low margins compared to pure software/fortune techs
EV business still investment- and capital-intensive
❌ Intense competition (Apple, Samsung, Huawei, Oppo)
❌ Geopolitical risks in foreign markets
Cash & debt
Balance sheet data show solid equity ratio (~47%), no high debt, but investments in EV increase capital requirements.
🏁 6. market & competition
Market size & growth
📌 Smartphone & AIoT market continues to grow globally
EV market growing rapidly (strong new competitive area)
Main competitors
- Apple, Samsung (smartphones)
- Huawei, Oppo, Vivo (China / APAC)
- Tesla, BYD (EV)
- Amazon / Google (IoT / services)
Competitive advantages
✔ Strong price/performance ratio ✔ Fast-growing AIoT ecosystem
✔ Strong position in China & India
👥 7th customers & users
✔ Billion-strong installed base ✔
✔ Increasing proportion of multiple networked devices per user ✔
✔ High customer satisfaction with price-performance ratio ✔
Regional data varies, but global user growth visible
📉 8. capital structure & share policy
✔ Number of shares: Stable (~25 billion shares)
✔ Buybacks: occasional, not core policy
✔ No dividend: Focus on growth & reinvestment
🎯 9. goals & management track record
Mission & goals
👉 Expansion in EV market, expansion of international presence, AI integration
👉 Focus on premium segment & networked ecosystem
Track record
✔ Sales & profit growth
✔ Global market shares → Top position for smartphones
🧠 Management quality: Lei Jun is considered an experienced tech founder; clear focus on technology and growth
📈 10. TURNOVER & GROWTH (SEPARATE & DETAILED)
10.1 Turnover development
- 2023 → 2024: strong comeback
- 2025: double-digit growth expected
- Growth driver:
- Smartphones (premium segment)
- AIoT
- Internet services
- EV segment (still small, but growing)
10.2 Service growth
- Highest margins
- Recurring revenues
- Important lever for long-term valuation
10.3 Organic vs. acquisition
- Growth predominantly organic
- Focus on platform effects
10.4 Pricing power
- Premium devices → yes
- Low-end → limited
- ➡ Mix improves
💰 11. PROFIT (VERY DETAILED)
11.1 Sources of profit
- Services = highly profitable
- Smartphones = volume-driven
- EV = currently loss-making
11.2 Cost structure
- High R&D expenditure
- Efficient marketing
- Economies of scale visible
11.3 Appropriation of profits
- Reinvestment
- AI, chips, EV
- Long-term focus
11.4 Quarterly patterns
- Q4 traditionally strong
- Margins fluctuate → hardware cycles
12 Margins - Xiaomi Corporation
Gross margin:
approx. 21-23 %
Net margin:
approx. 5-7 %
Profit margin:
moderate, but stable
Free cash flow margin:
approx. 6-8 %
Margin development:
Stable to slightly increasing
Internet services improve the overall margin
EV segment depressed in the short term
ROIC (Return on Invested Capital):
over 10 %
ROE (Return on Equity):
approx. 15 %
ROIC > WACC:
Yes
→ Xiaomi creates long-term value
💸 13TH CASHFLOW
- Free cash flow: positive
- Operating cash flow strong
- EV investments depress short-term
📌 Cash flow = reality
- No aggressive balance sheet
- No cash burn scenario
🧠 14. MANAGEMENT / CEO (IN DETAIL)
Lei Jun - Founder & CEO
Background
- founder
- Tech visionary
- Long-term oriented
- Comparable to Steve Jobs (China version)
Strengths
✔ Clear vision
✔ Focus on product & users
✔ Long-term decisions
✔ No short-term actionism
Communication
- Transparent
- Goal-oriented
- No buzzwords
Capital allocation
- Reinvested instead of dividends
- EV bet conscious & communicated
- No excessive debt build-up
🟢 Management quality: High
📅 15. forecasts
📈 Analysts expect further sales & EPS growth.
More precise figures dependent on quarterly guidance (next figures expected on 19.08.2025).
📰 16th News (2025 Highlights)
🗞️ Q1 2025 Record turnover & record profit 📈
🗞️ Expansion EV target 350 k vehicles & plans abroad 🚗
🗞️ Strong growth in services & IoT 📊
17. quarterly reports, quarterly figures, conference calls & letters to shareholders
17.1 What should you pay particular attention to with Xiaomi?
Quarterly reports are particularly important for Xiaomi as the company has several very different business segments. It is not only the total turnover that is decisive, but also where the growth comes from and which segments are profitable.
Important focus points:
- Sales growth by segment (smartphones, AIoT, services, EV)
- Development of margins
- Cash flow and investments
- Statements on the EV business
- Tone and clarity of management
17.2 Key statements from the last quarterly reports
Turnover & growth
Xiaomi has recorded significant sales growth in recent quarters. Growth was particularly strong:
- the smartphone business (especially premium models)
- the AIoT segment
- the internet services
Growth is not only driven by volume, but also increasingly by higher-quality, higher-priced products.
Margins
Xiaomi regularly emphasizes this in its reports:
- stable gross margins despite competitive pressure
- increasing contribution of Internet services to the overall margin
- short-term margin pressure due to EV investments, which is consciously accepted
Important:
Management openly communicates that the EV segment is currently not optimized for profitability, but for market share and technology development.
Cash flow & investments
- Operating cash flow remains positive
- High investments in research and development
- EV investments are the largest cash consumer
- No indications of liquidity problems
Management emphasizes that Xiaomi:
- has sufficient cash reserves
- can finance the EV business in the long term
- does not plan aggressive debt
17.3 Conference calls - tone & communication
Tone of management
The tone in the conference calls is:
- objective
- transparent
- long-term oriented
- few marketing buzzwords
Lei Jun and the management:
- avoid unrealistic promises
- speak openly about risks
- explain weaknesses clearly
Important statements from the calls
- Focus on premium smartphones instead of pure volume
- Expansion of the ecosystem (more devices per user)
- Internet services as a central margin lever
- EV segment as a strategic pillar for the future, not as a short-term profit driver
17.4 Guidance & outlook
Xiaomi traditionally does not provide extremely detailed guidance, but clear qualitative statements:
- Further sales growth expected
- Services to grow faster than hardware
- Margins to remain stable or increase slightly
- EV production will be gradually ramped up
- International growth remains focus
The guidance is working:
- realistic
- not exaggerated
- consistent with previous statements
17.5 Letters to shareholders - what is emphasized?
In shareholder letters, Xiaomi places particular emphasis on:
- long-term strategy
- technological development
- user loyalty
- ecosystem thinking
Frequent key messages:
- Quality before short-term profit
- User experience as a key competitive advantage
- Patience required in the EV business
17.6 Goals vs. implementation (very important)
Xiaomi can look back on a good track record:
- Announced product strategies were implemented
- Expansion of the ecosystem proceeded as planned
- Market shares were gained in important regions
Mini-rating:
🎯 Target achievement (track record)
Previous targets achieved: ☑ Yes
Deviations explained: ☑ Yes
Management credible: ☑ High
Evaluation of objectives:
☑ Clear & measurable
☑ Realistic
☑ Consistent
☑ Well implemented so far
17.7 Overall assessment point 17
✔ Quarterly reports transparent
✔ Conference calls informative
✔ Management communicates honestly
✔ Focus on long-term value creation
✔ No "whitewashing"
🚨 18th risks
⚠ Geopolitics & regulations (China)
⚠ Fierce competition
⚠ High investments in the EV segment
🧾 19. CONCLUSION / RESULT
Investment assessment:
☑ Buy (long-term)
☐ Watch
☐ Too expensive
☐ Too risky
Why?
✔ Strong ecosystem
✔ Growing services
EV as an option, not an obligation
✔ Fair valuation
⚠ Risks remain (China, competition, EV)
⚖️ 20. WEIGHTING IN THE PORTFOLIO
Risk/reward ratio:
Good
Recommended weighting:
Depending on the investor's wishes and convictions
❌ No all-in
❌ No short term trade
Final question for the community:
How do you view Chinese equities in general, especially with regard to geopolitical risks, regulatory intervention and the political environment?
Are these risks a no-go for you or do you rather see opportunities through lower valuations?
I look forward to hearing your views.
