XIAOMI CORP to shut down financial services business in India

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Xiaomi ($SEHK:01810) makes and invests in smartphones, mobile apps, laptops, home appliances, bags, shoes, consumer electronics, and many other products. Xiaomi has announced that it will be shutting down its financial services business in India. The company has been offering financial services in India through its Mi Credit and Mi Pay platforms.

However, Xiaomi has now decided to exit the financial services space in India due to regulatory hurdles and the challenging operating environment. However, the company will continue to focus on its core smartphone business in India. Xiaomi is one of the leading smartphone brands in India and is looking to maintain its momentum in the market.

Price History

On Monday, XIAOMI CORP stock opened at HK$8.8 and closed at HK$8.8, up by 1.0% from previous closing price of 8.7. This move comes after the Reserve Bank of India put restrictions on the company’s lending operations in the country. However, the RBI’s restrictions will make it difficult for the company to continue its lending operations in India. However, it is likely that the decision will impact XIAOMI CORP’s growth in the country.

VI Analysis

Based on the analysis made by the VI app, it is clear that the company’s fundamentals reflect its long term potential. However, it is also rated as a high risk investment in terms of financial and business aspects. The app has detected 3 risk warnings in income sheet, balance sheet, cashflow statement.

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

It is the world’s 4th largest smartphone maker. Xiaomi makes and invests in smartphones, mobile apps, laptops, home appliances, bags, shoes, consumer electronics, and many other products.