AMTD Research | Xiaomi (1810 HK): company updates: Fundamental unchanged, LT growth story intact, buying opportunity emerging, reiterate Buy with PT of HK$35.0

We just published a research note on Xiaomi (1810 HK) to reiterate our Buy rating with PT of HK$35.0.

Xiaomi’s stock price retreated on the news of being subject to changes in the regulatory environment today. As a global leading consumer electronic devices maker, Xiaomi provides products and services, such as smartphones, IoT devices, and internet services for civilian and commercial use, in our view. Despite the near-term uncertainties, we believe Xiaomi’s LT growth story intact:

• fundamental unchanged as smartphone and 5G+AIoT are on the fast track with full support from key suppliers;

• sitting on a strong balance sheet with healthy cash flow and low refinancing risk;

• Also, since there might be force selling among certain investors due to the changes in the regulatory environment, we see this correction a good buying opportunity.