[ET Net News Agency, 14 July 2020] Huatai Research initiated coverage on Xiaomi
Corporation (01810) with a "buy" rating and a target price of HK$18.5.
It said Xiaomi is infiltrating many aspects of consumer lives with value-for-money
products, generating high-profit margin through its value-added services, internet
revenue, and e-commerce ecosystem.
Huatai's positive view on Xiaomi is driven by (1) its mobile connectivity and large
consumer Internet of Things (IoT) platform; (2) its brand proposition and ecosystem to
widen product range and successful launches of associated brands in China and overseas;
and (3) its value-added services and internet revenue with growth potential worldwide.
On a 2020-22 revenue CAGR of 18%, Huatai forecast a 20.3% net profit CAGR over the same
period. (KL)