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Xiaomilong

1810 - Xiaomi HKEX basic setup Xiaomi shows some signs of reverse / end of correction / around listing price. However locally Xiaomi is on the downtrend side. Reasons to be bullish include an expected surge in revenue and earnings, driven by Xiaomi’s focus on Internet services and its increasing share of the hardware market in China, according to notes seen by Bloomberg. In a 63-page note to clients titled “Building a mountain one grain at a time,” Goldman Sachs analysts including Piyush Mubayi estimate Xiaomi has as many as 190 million users worldwide. CICC predicts Xiaomi will grow revenue by 45 percent and earnings by 60 percent at a compound annual growth rate in 2018-2020. Morgan Stanley predicts a 61 percent growth rate for net profit in that period. Xiaomi is expected to release earnings on Aug. 22. Analysts now predict Xiaomi will rise 22 percent from Wednesday’s close, according to the average 12-month target price compiled by Bloomberg. www.bloomberg.com
HKEX:1810
by Pandorra
IPO Xiaomi gives one of the most promising trades this summer Yesterday, one of the leaders in the global smartphone industry Xiaomi held initial public offering of shares on the Hong Kong Stock Exchange. So far, it looks like a complete failure (of the planned capitalization of $ 100 billion it was possible to reach only about $ 50 billion), but we consider this as an excellent investment opportunity and we will outline our argument below. To start with, current quotes are not quite a reflection of objective reality, but rather an emotional impression of the state of investors on the Asian stock markets. The fact is that the moment for the IPO Xiaomi was chosen extremely unsuccessfully (in fact, extremely unsuccessful for Xiaomi, but very successful for those who want to buy cheaper). Stock markets throughout Asia literally crumble and renew annual lows. All this takes place against the background of the active phase of the trade war between the US and China, which officially started last Friday. That is, optimism on the stock markets of Asia and China is not present for now. But again, the key word is "for now" Next, let's talk about the company itself. Xiaomi is one of the world's largest manufacturers of smartphones (the fourth place in the world). And the smartphone market can be said to be the basis of the modern high-tech world. At the same time, Xiaomi is a company that is rapidly developing, entering new markets and capturing them. And if for the time being mostly developing countries (but we are talking about such giants as China and India), then in the future it is a question of global domination (although now the company's products are sold in 74 countries of the world). In total, we consider the current prices as a unique opportunity for cheaper purchases. The closest analogy is the example of Facebook's IPO, which at first was also exceptionally failure. But, how it all ended we all know (just to be on the safe side, stocks rose from $ 18 to $ 200 in five years, that is, they gave an average yield of 200% per year). We consider this parallel to be very appropriate and recommend buying Xiaomi stocks, while they are twice cheaper than IPO underwriter estimates.
HKEX:1810Long
by Trade24Fx