Leonid Zadorozhnykh @ProDoser: "I just re-opened my position..."

Leonid Zadorozhnykh Bought $1810.HK @40.18

Finland

I just re-opened my position in $1810.HK (Xiaomi Corp) with 0.55% of my equity. Here is why… Previously I took profits and closed the position because the stock looked overheated on hype. After the recent correction and digging into the latest numbers, I now see a much better risk/reward to get back in. Why I’m back in 1️⃣ Solid execution and growth • Q3 revenue hit RMB 113.1B, up ~22% YoY • Adjusted net profit was around RMB 11.3B, up ~81% YoY, with net margin close to 10% • Xiaomi keeps a net cash balance sheet, which is important when you’re scaling something as capital-intensive as EVs So for me it’s not just a “story stock” – there is real profit and cash behind the narrative. 2️⃣ Strong position in smartphones Xiaomi is competing directly with $AAPL (Apple) and $SMSN.L (Samsung Electronics Co Ltd - GDR) on the smartphone market and holds roughly ~14% global market share, currently sitting around #3 worldwide. What I like here: • Strong presence in Europe and emerging markets • Ongoing premiumization (Pro/Ultra phones) that can slowly improve margins • Huge installed base that feeds into services, ads and the broader ecosystem 3️⃣ EV business: from story to reality On the EV side, Xiaomi is now stepping into the ring with $TSLA (Tesla Motors, Inc.) and $01211.HK (BYD Co Ltd) • EV revenue is growing fast and management says the EV business is close to profitability • Delivery target for 2025 has been raised multiple times (now talking 400k+ cars for the year) • Most early issues with their EVs seem to be resolved, and production ramp + shorter wait times show good execution For me this shows strong leadership, operations and marketing working together, not just “let’s try EVs and see what happens.” What I like from an investment perspective When I look at Xiaomi now, I see: • A profitable tech company with double-digit revenue growth • Exposure to three big themes at once: • Smartphones & consumer tech • Smart home / IoT & internet services • EVs and AI-driven mobility • Valuation still in the low-20s P/E range, which in my view is reasonable for this level of growth and optionality That combination is why I decided to re-enter after the pullback. Main risks I keep in mind Of course, it’s not risk-free: • Smartphone pressure – tough competition from Apple, Samsung, Huawei and others can hurt margins • EV price war – China’s EV market is brutal; fighting for share against Tesla, BYD and others can squeeze profitability • China & regulation risk – sentiment around Chinese stocks can change quickly (geopolitics, tariffs, regulation) I’m still comfortable taking this risk personally because Xiaomi has a strong track record of execution: entering new categories, scaling fast, and using ecosystem effects to their advantage. No guarantees, but their past gives me more confidence about the future. 📌 Summary: After taking profits earlier when things looked overheated, I now see Xiaomi as an attractive re-entry: solid fundamentals, growing EV business close to breakeven, strong smartphone + IoT ecosystem, and a valuation that (in my opinion) doesn’t fully price in the EV and AI upside. ——— ℹ️ Disclaimer: This post reflects my personal opinions and market observations and is not financial advice. 🤝 You can start copying my trades from just 300$ - check pinned post for more details. ⚠️ Past skyrocketing gains are not a guarantee of future results.