Source: Broker China
Lei Jun announced the latest personnel appointments at Xiaomi!
5/8,$XIAOMI-W (01810.HK)$Founder Lei Jun announced on his personal Weibo that two employees have been promoted to become group executives. Among them, Xu Fei is Group Vice President and Group CMO, and Zhang Jianhui is Group Vice President and Group Procurement Committee Chairman. According to reports, this is the first time that Xiaomi has appointed two female executives at the same time.
On the same day, Xiaomi Group's stock price surged against the market. By the close, it had risen 6.47% to HK$19.1 per share, with a market capitalization of HK$476.6 billion. A number of well-known investment institutions have expressed positive expectations for the company's first quarter results.
Xiaomi promotes two executives
On May 8, Lei Jun announced in a Weibo post that Xu Fei is Group Vice President and Group CMO (Chief Marketing Officer); Zhang Jianhui is Group Vice President and Group Procurement Committee Chairman.
Lei Jun said that Xu Fei and Zhang Jianhui both joined Xiaomi at the beginning of their business. They have grown together with Xiaomi for more than ten years and have made important contributions in various positions. Previously, Xu Fei was the vice president of Xiaomi China and general manager of the marketing department, while Zhang Jianhui served as the general manager of the administrative department of the Xiaomi Group.
In addition, Xiaomi also issued internal organizational adjustments and cadre appointments today. The notice shows that Xu Fei and Zhang Jianhui both reported directly to Lei Jun.
The notice also indicates that the Group's Strategic Marketing Department will be established to coordinate all of the Group's brand, PR and market-related work. It has three divisions: the Group Brand Department, the Group PR Department, and the Group Strategic Market Operations Office.
Among them, Xu Fei was appointed as the general manager of the Group's Strategic Marketing Department; Xu Jieyun was appointed as the Deputy General Manager of the Group's Strategic Marketing Department to coordinate the overall communication work, oversee the Group's PR department, and report to Xu Fei, general manager of the Group's Strategic Marketing Department. Xu Jieyun continued to serve as a special assistant to the Group Chairman and CEO, reporting to Lei Jun; appointed Wang Shiwei as Deputy General Manager of the Group's Strategic Marketing Department, General Manager of the Group Brand Department, and General Manager of the Group's Strategic Market Operations Office; and reports to Xu Fei, general manager of the Group's Strategic Marketing Department.
The stock price hit a new high during the year
On May 8, Xiaomi Group's stock price surged against the market. By the close, it had risen 6.47% to HK$19.1 per share, with a market capitalization of HK$476.6 billion.
According to the news, several Xiaomi car reservation customers said on social media that the SU7 MAX version was delivered nearly 7 weeks ahead of schedule. In addition, other analysts believe that the rise in the Xiaomi Group's stock price was mainly due to positive market expectations for the company's first quarter results.
On March 28, the Xiaomi Group held a launch conference for the XIAOMI SU7. On the first trading day that followed, on April 2, the opening stock price of the Xiaomi Group surged 16%, and the increase fell back to 9% by the end of the day. Since then, Xiaomi's stock price has continued to fluctuate and rise. Since March 28, the stock price has risen by nearly 30%, reaching a new high during the year.
Citibank analyst Kyna Wong pointed out in the report that after 30 days of positive catalytic observation of Xiaomi, it is expected that the company's stock price will be supported by strong first-quarter results, and the release of the Mix Fold 4 phone will also show Xiaomi's strength in high-end models.
UBS released a research report saying that maintaining the Xiaomi Group-W “buy” rating, Xiaomi's revenue for the first quarter of this year is expected to increase 25% year-on-year to 74.4 billion yuan; non-international accounting standards net profit will increase 51% to 4.9 billion yuan, with a target price of HK$20 per share. The report predicts that smartphone, Internet of Things (IoT), and network revenue increased 31%, 21%, and 7%, respectively, in the first quarter of this year. It is believed that profit margin support for the IoT business may be more significant than expected and offset the cost pressure on smartphone parts, leading to a 2.3 percentage point increase in comprehensive gross margin and 0.5 percentage points quarterly to 21.8%.
The bank expects that Xiaomi's mobile phone shipments in the first quarter increased 31% year on year to 39.9 million units, and the average product price remained the same year on year. According to Counterpoint data, Xiaomi's sales volume in the first quarter increased 21% year over year to 39.3 million units, reflecting limited inventory accumulation. It is also estimated that due to rising memory costs, the gross margin of mobile phones will drop 1.9 percentage points from quarter to quarter, but due to improvements in product portfolio and high-end scale, gross margin will still increase 3.3 percentage points year on year. The bank estimates that revenue from the IoT and home lifestyle consumer business increased 21% year-on-year to more than RMB 20 billion in the first quarter, and gross margin increased 3.3 percentage points year over year and 5.1 percentage points to 19% quarterly.
Allocating Hong Kong stocks requires balancing defense and offense
On May 8, the Hang Seng Technology Index closed down 1.29%, while the Hang Seng Index and China Index fell 0.9% and 1.07% respectively. The three major indices pulled back for 2 consecutive days. The performance of most large technology stocks was sluggish. Kuaishou fell more than 3%, Alibaba fell 2.43%, and Meituan, Tencent, Baidu Group, and NetEase all fell more than 1%. Recently, the Hong Kong stock market has experienced a wave of sharp recovery. After experiencing a pullback, what do you think of the future market?
Regarding the recent trend in Hong Kong stocks, Huatai Berry Fund believes that increased policy impetus and trending recovery in risk appetite have greatly boosted the liquidity of Hong Kong stocks, and that improvements in capital are an important driving force for the strong performance of Hong Kong stocks in this round. From a policy perspective, the China Securities Regulatory Commission announced 5 capital market cooperation measures with Hong Kong on April 19 to optimize the Shanghai-Shenzhen-Hong Kong Stock Connect mechanism and broaden capital flow channels for Hong Kong stocks. The active introduction of the policy is expected to attract more mainland capital and institutional investors. Marginal changes in capital combined with short compensation have greatly leveraged the relatively sluggish trading of Hong Kong stocks in the early stages, improving market liquidity and stability while bringing more growth to the asset side of Hong Kong stocks, thus breaking out of an accelerated market.
Zhang Junxiao, head of the Total Cycle Group of the Penghua Fund Research Department, believes that overall, the rise in Hong Kong stocks in this round is the result of fundamental and capital resonance: First, because Hong Kong stocks themselves are an offshore liquidity market, which also means that capital flows have a huge impact on Hong Kong stocks. Reversing the recent movement of southbound capital, foreign investors participated more in the Hong Kong stock market in this round, and the “May 1st” holiday saw a sharp rise in volume without southbound trading.
The reason for the influx of capital into Hong Kong stocks is, on the one hand, that stagflation expectations heated up after the US economy and inflation data for the first quarter were released, and adjustments in yen and Japanese stocks also drove the outflow of funds allocated globally; on the other hand, the May FOMC meeting did not send a signal that was more hawkish, and the undervalued and high dividend advantages of Hong Kong stock assets began to show, thus becoming a safe haven for foreign investors. Second, judging from the transaction structure, the current round of capital is concentrated in Hong Kong stock internet giants, followed by financial real estate. In short logic, these sectors are all highly related to domestic economic prosperity, so to a certain extent, they also contain improvements in macro and policy expectations; in the long term, after going through a period of rapid growth, some typical Internet platforms have signs of increasing the scale of dividends and repurchases, and their value attributes are gradually becoming prominent.
At the same time, Huatai Berry Fund suggested that the continued inflow of capital and more room for valuation repair has caused many investors to re-examine the investment value of the Hong Kong stock market, but at a time when various “uncertainties” at home and abroad are intensifying, simply betting on a highly elastic circuit is still a risky choice, taking into account the “dumbbell strategy” (allocation strategy of diversification of investment) between defense and offense, or one of the ideal ways to allocate Hong Kong stocks.
editor/tolk