On January 3, the Star Daily reported (Reporter Tang Zhixiao) that Xiaomi Group's stock price has reached a new high.

On Friday, Xiaomi Group's stock price reached a new high, peaking at 36.3 Hong Kong dollars per share during the trading session. By the end of trading, it rose by 6.62%, closing at 36.25 Hong Kong dollars per share, with a total market value of 909.713 billion Hong Kong dollars.

It is worth noting that the last peak in Xiaomi Group's stock price was in January 2021, nearly four years ago, during which its stock price fell to 8.31 HKD/share in 2022.

Morgan Stanley Analysts released a research report and expected that Xiaomi will increase its electric vehicle production capacity this year. 'Xiaomi's 2024 delivery volume exceeding expectations, along with an increase in the 2025 delivery target, indicates that the company’s new business in electric vehicles is performing excellently.'

Recently, Xiaomi Group announced that the annual delivery volume of the Xiaomi Autos SU7 for 2024 will exceed 0.135 million units, achieving a completion rate of 103.9%. It is reported that Xiaomi's Chairman and CEO Lei Jun revealed during a New Year live broadcast event that the delivery target for 2025 is 0.3 million units.

Capital Markets personnel Qu Fang told the reporters of the Star Daily, 'The recent strength of Xiaomi’s stock price reflects the market's positive expectations for its future industry (mainly new energy vehicles).'

Previously, Xiaomi Autos announced that the new SUV model Xiaomi YU7 is expected to officially launch in June or July next year (2025). Lei Jun stated on Weibo that Xiaomi is currently conducting large-scale road tests, and the early announcement is hoped to facilitate the early removal of heavy camouflage from the YU7 test vehicle, aiding Xiaomi Autos in conducting more comprehensive and detailed long-term large-scale tests to ensure product quality and create better products.

In an interview with the Star Daily, industry observer and founder of Ding Technology, Major General Ding, stated: "In order for Xiaomi Autos to achieve the delivery target of 300,000 units, it needs to face three challenges: first, it must overcome the ability to scale production and significantly increase capacity to meet delivery demands; second, regarding the market environment, it relies on the overall market conditions and whether national subsidy policies can be effectively implemented in various regions to stimulate market demand; third, in terms of product innovation, it must create a new blockbuster model based on the Xiaomi SU7 with significant improvements in all aspects, including smart driving and other key areas."

In addition to the bullish prospects for the auto business, the goals for Xiaomi's smartphone business have also become clearer.

At the 2024 Xiaomi human-car-home full ecosystem partner conference at the end of last year, Xiaomi Group partner and president Lu Weibing mentioned that, compared to 2023, Xiaomi's high-end smartphone sales increased by 43%, stabilizing at a scale of 10 million units, and this year it is expected that high-end smartphone sales will exceed 12 million units. Xiaomi has also set a new goal to achieve a net increase of over 10 million units of high-end smartphones every 3 to 5 years. "Currently, Xiaomi has established a foothold in the 4,000 to 6,000 yuan price range, and the next focus is to break through 6,000 yuan."

Recently, CMB Electronics released a research report on Xiaomi Group stating, "In terms of AI, the Xiaomi large model will be upgraded to the second generation in November 2024, greatly improving internal group efficiency and fully empowering the 'human-car-home full ecosystem.' In the IoT aspect, the major appliance business has become a strategic category with high sales growth year-on-year in 2024; innovative hot-selling products continue to emerge, and self-research and production capabilities continue to strengthen."

Industry insiders believe that once personal devices like smartphones fall under the subsidy scope, it is expected to further boost sales of Xiaomi smartphones, tablets, and AIoT devices.

Qu Fang stated to the Star Daily reporter: "The new national subsidy policy and the competitive pressure from the industry to strengthen product research and development are pushing Xiaomi to move towards high-quality and high-cost performance in the future. Based on the effects of the subsidies in 2024, consumers still tend to favor high-end brands; therefore, the only way for Xiaomi to truly establish itself in the market is to strengthen internal product upgrades."

Gao Chengyuan, chairman and CEO of Tiao Yuan Consulting, expressed a similar view when interviewed by the Star Daily, stating, "This is a double-edged sword for Xiaomi phones to impact the high-end market. On one hand, the subsidy policy may lower the threshold for consumers to purchase high-end phones, stimulating demand and helping Xiaomi phones quickly gain traction in the mid to high-end market. On the other hand, excessive reliance on subsidies may increase consumers' price sensitivity, neglecting the construction of brand high-end connotation and affecting Xiaomi's long-term competitiveness in the high-end market. Therefore, Xiaomi needs to focus more on brand value and technological innovation while utilizing policy advantages to achieve sustainable development in the high-end market."

Editor/Jeffy