High Court Yet to Rule on Xiaomi’s Plea Under Exchange Management Act

Trending News 🌥️

Xiaomi makes and invests in smartphones, mobile apps, laptops, home appliances, bags, shoes, consumer electronics, and many other products. The company sells its products in mainland China, India, Malaysia, Singapore, and is expanding into other markets such as Indonesia, the Philippines, South Africa, Turkey, and Vietnam. Xiaomi RedMi 1S was very popular in the market. Xiaomi Corporation ($SEHK:01810)’s plea under the Exchange Management Act is still being deliberated by the High Court. The Competent Authority appointed under the Foreign Exchange Management Act had issued an order on September 29th that Xiaomi Technology India Pvt Ltd challenged.

No verdict has been given yet by the High Court. The company sells its products in mainland China, India, Malaysia, Singapore, and is expanding into other markets such as Indonesia, the Philippines, South Africa, Turkey, and Vietnam.

Share Price

On Friday, Xiaomi’s stock opened at HK$10.4 and closed at HK$10.3.

VI Analysis

Investors interested in companies with strong asset growth potential may be interested in XIAOMI CORPORATION. The company’s fundamentals reflect its long term potential and according to VI Star Chart, XIAOMI CORPORATION is strong in asset, growth, and medium in profitability and weak in dividend. Although the company is classified as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth, its high health score of 8/10 with regard to its cashflows and debt indicates that it is capable of safely riding out any crisis without the risk of bankruptcy.

VI Peers

Xiaomi Corp, a Chinese multinational electronics company, designs, develops, and sells smartphones, mobile apps, laptops, home appliances, bags, shoes, consumer electronics, and many other products. The company has a vast product ecosystem that includes products such as the Mi Phone, Mi Air Purifier, and the Mi Robot Vacuum Cleaner. Xiaomi is also the world’s fifth-largest smartphone maker. The company’s revenues have grown rapidly, reaching US$30 billion by 2018.

AAP Inc, Twoway Communications Inc, SK Hynix Inc are all companies that compete with Xiaomi Corp in the smartphone market.

– AAP Inc ($OTCPK:AAPJ)

AAP Inc is a publicly traded company with a market capitalization of 49.89k as of 2022. The company has a Return on Equity of -11.91%. AAP Inc is involved in the business of providing physical and occupational therapy services.

– Twoway Communications Inc ($TPEX:8045)

Two-way Communications Inc is a Canadian company that provides wireless communication solutions. Its products and services include two-way radios, pagers, and other related services. The company has a market capitalization of 876.35 million as of 2022 and a return on equity of 5.47%. Two-way Communications is headquartered in Toronto, Canada.

– SK Hynix Inc ($KOSE:000660)

SK Hynix is a South Korean memory semiconductor supplier of dynamic random access memory chips and flash memory chips. As of 2022, it has a market capitalization of US$63.88 billion. The company’s headquarters are in Seongnam, South Korea. SK Hynix was founded as Hyundai Electronics in 1983 and its name was changed to Hynix in 2001.

Summary

Investing in Xiaomi Corporation may be a risky proposition, as the company is still in the early stages of its development. Nevertheless, the potential rewards could be significant, as Xiaomi has shown impressive growth in recent years. The company is currently the fifth largest smartphone maker in the world, and its products are popular in China and other Asian markets.

Xiaomi has also expanded into other areas such as internet-connected home appliances and drones, and it has plans to enter the US market in the near future. Given its strong growth prospects, investing in Xiaomi could be a worthwhile gamble for risk-tolerant investors.