Xiaomi Corporation Intrinsic Value – XIAOMI CORPORATION Reports Strong Q1 Earnings for FY2023 Ending March 31 2023
May 27, 2023
Earnings Overview
On May 24 2023, XIAOMI CORPORATION ($SEHK:01810) released their financial results for the first quarter of FY2023, ending March 31 2023. Despite a decrease of 18.9% in total revenue to CNY 59477.1 million compared to the same quarter in the previous year, net income showed a remarkable increase from a net loss of -587.6 million to CNY 4203.8 million.
Share Price
On Wednesday, XIAOMI CORPORATION reported strong Q1 earnings for the fiscal year ending March 31 2023. Despite the strong results, the company’s stock opened at HK$10.7 and closed at HK$10.4, down by 3.3% from last closing price of 10.8. This was attributed to the continued strong performance of its smartphone and smart-home product divisions. In addition to the financial results, XIAOMI CORPORATION also announced plans to further invest in research and development, particularly in the areas of artificial intelligence, robotics, and the Internet of Things (IoT).
This move is expected to boost XIAOMI CORPORATION’s global market share and help it to remain competitive in the long-term. The company’s stock may have dropped slightly upon release of these results, but this should not be interpreted as a lack of confidence in the company’s future performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Xiaomi Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 266.17k | 7.27k | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Xiaomi Corporation. More…
| Operations | Investing | Financing |
| 5.51k | -3.64k | -11.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Xiaomi Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 264.2k | 115.82k | 5.93 |
Key Ratios Snapshot
Some of the financial key ratios for Xiaomi Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.9% | -14.7% | 4.6% |
| FCF Margin | ROE | ROA |
| -0.1% | 5.3% | 2.9% |
Analysis – Xiaomi Corporation Intrinsic Value
GoodWhale has completed an examination of the fundamentals of XIAOMI CORPORATION. Our proprietary Valuation Line shows that the fair value of their share is around HK$19.9. Currently, XIAOMI CORPORATION stock is trading at HK$10.4, which means it is undervalued by 47.6%. In other words, this presents a great opportunity for savvy investors who are looking to capitalize on this discrepancy. More…
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
Xiaomi Corporation reported lower than expected earnings results for the first quarter of Fiscal Year 2023, ending March 31 2023. Total revenue decreased 18.9% year-over-year to CNY 59477.1 million, while net income improved significantly from a net loss of -587.6 million the previous year to a net income of CNY 4203.8 million. As a result, the stock price dropped on the same day.
For investors considering investing in Xiaomi Corporation, it is important to note that the company is currently facing weaker than expected earnings and may not be a sound long-term investment. Furthermore, investors should conduct further research into the company’s financials, management strategy, and competitive landscape to ensure that they are making an informed decision.
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