passion7272 @passion7272: "Why $1810.HK is a..."

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Why $1810.HK (Xiaomi Corp) is a HODL? 1. Market Position and Growth - Global Smartphone Market Share: As of Q4 2024, Xiaomi maintained approximately 13% of the global smartphone market, remaining one of the top three manufacturers alongside $AAPL (Apple) and $SMSN.L (Samsung Electronics Co Ltd - GDR) - Sales Growth: In 2024, Xiaomi reported a 29.4% year-over-year increase in smartphone shipments, indicating robust demand in both domestic and international markets. 2. Diverse Product Portfolio - Revenue Breakdown: For the fiscal year 2024, Xiaomi's revenue from smart devices (including smartphones) reached around $45 billion, while revenue from IoT and lifestyle products was approximately $14 billion. - Product Categories: The company boasts over 400 products across various categories, including wearables, home appliances, smart TVs, and electric scooters. 3. Expanding Ecosystem - Connected Devices: By early 2025, Xiaomi's ecosystem includes over 450 million connected devices, excluding smartphones. This extensive network enhances customer engagement and loyalty. - Mi Home App: The Mi Home app now has over 130 million downloads, allowing users to manage their smart home devices seamlessly. 4. Electric Vehicle Initiative Xiaomi’s SU7 electric sedan (launched March 2024) targets $TSLA (Tesla Motors, Inc.) 's Model 3 and Porsche’s Taycan at half the price. - Investment Plans: Xiaomi is making significant investments in the electric vehicle sector, planning to allocate around $10 billion over the next decade. This investment aims to develop innovative electric vehicles and enhance their technology. - SU7 Ultra Launch: The highly anticipated SU7 Ultra electric vehicle is set to launch in China on February 27, 2025. Xiaomi's CEO has expressed confidence in achieving sales of 10,000 units in its first year. - Future Models: In addition to the SU7 Ultra, Xiaomi has plans for more electric vehicle models, demonstrating its commitment to becoming a key player in the EV market. 5. Financial Performance - Revenue Growth: In 2024, Xiaomi reported total revenue of approximately $45 billion, showcasing continued growth compared to previous years. - Net Income: The company achieved a net income of around $3.5 billion in 2024, reflecting ongoing profitability. 6. R&D Investment - R&D Spending: Xiaomi allocates about 5% of its annual revenue to research and development. In 2024, this amounted to approximately $2.25 billion, focusing on advancements in AI, IoT, mobile technology, and electric vehicles. 7. Brand Loyalty and Recognition - Customer Satisfaction: Surveys from early 2025 indicate that Xiaomi continues to rank highly in customer satisfaction and loyalty among smartphone brands. - Social Media Presence: The brand enjoys a strong social media following, with over 25 million followers on Weibo, reflecting solid engagement with its customer base. 8. Margin of Safety Xiaomi’s cash ($15B) covers its EV investments, limiting downside. At 1x P/S, bad news is priced in. Catalysts Ahead: EV deliveries beating estimates (SU7 production ramping). Services margin expansion (HyperOS integrates AI, cars, phones). Global smartphone share gains as Huawei struggles with U.S. sanctions. Long-Term Vision: CEO Lei Jun (China’s Steve Jobs) is replicating his smartphone playbook in EVs: disrupt incumbents with affordability + tech. $1810.HK (Xiaomi Corp) is the second largest holding in my portfolio. Although I allocated a very small portion of my portfolio to it some years ago, it has grown over 14.5% at the time of writing this article. If you enjoy this type of content, please press like and share it with others. Also, follow me for more content like this. $0992.HK (Lenovo Group) $NIO (Nio Inc.-ADR) $SKWD (Skyward Specialty Insurance Group Inc) $BABA (Alibaba-ADR) $03690.HK (Meituan Class B)