Why is it still difficult for Xiaomi's stock price to repurchase 127 times since listing?

Radar finance produced | Meng Shuai editor | Shenhai

Xiaomi Group repurchased again!

On September 5, Xiaomi Group cost about 48.9 million Hong Kong dollars to repurchase the company's 4.5 million shares; the next day, Xiaomi Group spent about 49.32 million Hong Kong dollars to repurchase the company's 4.5 million shares.

Flush iFind statistics show that Xiaomi Group has launched a total of 127 shares for repurchase since its listing. However, Xiaomi Group's over 100 shares since its listing have not long effectively boosted the company's stock price.

As of the closing of September 6, Xiaomi Group's latest market value was HK $ 273.593 billion, and the market value evaporated during the year was about 199 billion Hong Kong dollars.

According to industry analysts, the recent downturn of Xiaomi Group's stock price is related to the softness of the first half of the year. On the one hand, Xiaomi Group failed to show dazzling results in the smartphone branch of its own strengths, and the road of high -end is far away; on the other hand, Xiaomi Group's car construction business is like a "swallowing beast", Continuously devouring the company's cash flow, and it is difficult to build a car business. Whether the huge investment can be exchanged for corresponding returns has uncertainty.

Over 100 share repurchase since listing

On September 6, Xiaomi Group issued an announcement on the Hong Kong Stock Exchange that the company repurchased 4.5 million shares on September 6, with the repurchase price of HK $ 10.92 to HK $ 10.98, costing about 49.32 million Hong Kong dollars.

In fact, repurchase is nothing new for Xiaomi Group. Flush iFind showed that in the past month, Xiaomi Group's shares repurchase of 9 times, costing 494 million Hong Kong dollars.

If the timeline is stretched, this is the 30th share repurchase of Xiaomi Group in the year, and it is also the 127th share repurchase of Xiaomi Group since its listing. Radar Financial statistics learned that hundreds of shares have been repurchased since the listing of Xiaomi Group, and the repurchase range is between HK $ 8.73 and HK $ 27.2, and the average repurchase price is HK $ 16.53. It cost up to 13.782 billion Hong Kong dollars.

On the night of Xiaomi's ringing of the Hong Kong Stock Exchange's listing, Lei Jun said at the celebration banquet. Falling below the issue price. The company's stock price was not as good as expected. Lei Jun was particularly uncomfortable. It bluntly stated that "this is a very embarrassing thing for the IPO." Since then, Xiaomi's stock price performance has not been very ideal. Lei Jun was very emotional and even reluctant to see investors.

In the face of the company's stock price sluggish, Lei Jun was also puzzled, "We work so hard, Xiaomi's income and market share are growing. Why does the capital market recognize Xiaomi?" Lei Jun also asked, "If I am investment, Will I buy Xiaomi stock myself? "

"I always believe in our Xiaomi's career. At the same time, I am also a confident person. I firmly believe that the best investment is to invest in myself and give up the courage to persuade everyone to repurchase." Xiaomi did have a large number of shares repurchase as Lei Jun said.

In January last year, Xiaomi Group's stock price hit a new high since its listing. For a while, Lei Jun, who was very excited due to the performance of the stock price, said seriously to his colleagues, "Futu, Tiger, Flush, Snowball, Big Wisdom, and Self -selected stocks. These stock software can be unloaded. Once! From tomorrow, be a happy person, feed horses, split firewood, and travel around the world. "

However, since then, Xiaomi Group's stock price performance has fallen all the way. In the long run, although Xiaomi Group has carried out many share repurchase after listing, the company's stock price has not been effectively boosted for a long time. As of the closing of September 6, Xiaomi Group has closed at HK $ 10.94/share, only 64.35%of its issue price of HK $ 17.

Industry analysts believe that the recent sluggish stock price of Xiaomi Group is related to the softness of its first half of the performance. According to the financial report, Xiaomi Group's revenue in the first half of the year reached 143.522 billion yuan, which was 164.671 billion yuan in the same period last year, a year -on -year decrease of 12.84%. In terms of profit, the adjustment of the adjustment of Xiaomi Group in the first half of the year was 4.940 billion yuan. The adjustment of net profit was 12.391 billion yuan, a decrease of more than 60 % year -on -year.

Mobile phone impact on the world's first task is arduous, and the road of high -end is long -term

According to the information of Tianyan, Xiaomi was established on March 3, 2010. It is a global mobile Internet company focusing on the development of smart hardware and electronic products. Xiaomi is listed on the main board of the Hong Kong Exchange.

Xiaomi, which started with mobile phones, has always been its most important core business. In the second quarter of last year, the shipments of Xiaomi global smartphones increased by 83%year -on -year, helping its market share to 17%, surpassing Apple's 14%market share, and winning the second world's second good results in one fell swoop.

At the launch of Xiaomi on August 10 of the same year, Lei Jun also set the goal of "winning the world's first in three years" for Xiaomi mobile phones. Now about a year or so, how much has Lei Jun's goal for Xiaomi?

According to Canalys data, Xiaomi ranked third in the global smartphone shipment ranking in the second quarter of this year, compared with the lack of "listing" compared with the same period last year. In the second quarter, Xiaomi's market share in the world was 13.8%, which was less than 17%of the market share of the same period last year. On the contrary, Apple and Samsung achieved the market share of 3 percentage points in the same period. In addition, Xiaomi's performance in the Chinese mainland market in the second quarter was not even comparable to its ranking in the global market. According to Canalys data, Xiaomi in the second quarter ranked fourth in shipments in mainland China, with a market share of 15.7%.

Specifically, the shipments of Xiaomi smartphones in the second quarter decreased, from 52.9 million in the second quarter of the previous year to 39.1 million units in the same period this year, a year -on -year decrease of 26.2%. The decline in shipments further caused Xiaomi's income from the mobile phone business sector to shrink. The financial report shows that in the second quarter, Xiaomi Group's revenue from smartphones dropped by about 16.8 billion yuan year -on -year, from 59.089 billion yuan in the second quarter of last year to 42.268 billion yuan.

At the same time, the gross profit margin of Xiaomi in the second quarter in the smartphone branch also declined, from 11.8%in the second quarter of last year to 8.7%, a year -on -year decrease of 3.1 percentage points.

The high -end strategy that Xiaomi wants to be firmly implemented is not smooth sailing. According to the third -party data quoted by Xiaomi, in the second quarter, the market share of Xiaomi smartphones in the price range of 3,000 yuan to 4,000 yuan in mainland China reached 18.2%, an increase of 3.5 percentage points year -on -year; The accounting rate was 15.5%, a year -on -year increase of 2 percentage points.

However, if the average price (ASP) of smartphones is used as the reference dimension, the ASP of Xiaomi smartphones in the second quarter was 1081.7 yuan. The ASP of Xiaomi smartphones was 1116.7 yuan in the same period last year, a year -on -year decrease of 3.1%. Compared with Apple and Samsung last year (about RMB 5623) and 265 US dollars (about RMB 1806) ASP indicators, Xiaomi still has a large gap with the previous two.

Insiders pointed out that in terms of the current market performance of Xiaomi mobile phones, Xiaomi still has some difficulty to achieve the world's first goal; and Xiaomi, who won the market in the early years, wants to reverse the outside world's previous impression of its previous impression. There is still a long way to achieve a high -end strategy.

The mobile phone business slows down, because Lei Jun's center of gravity shifts the car?

In March last year, Lei Jun announced to the outside world officially announced the heavy news of Xiaomi Group's entry into the car manufacturing field at the new spring product launch conference held by Xiaomi Group. At that time, Lei Jun solemnly stated that this was the last major entrepreneurial project in his life. "I am willing to suppress all the accumulated records and reputation in my life, and fight for Xiaomi Automobile."

However, after all, the car building is a business of burning money. At present, Evergrande and Baoneng's car construction projects are still difficult to see the dawn. In order to show Xiaomi's determination, Lei Jun said at the press conference that Xiaomi Group's smart electric vehicle business will be led by himself. He also revealed that Xiaomi Group's cash flow reserves as of the end of 2020 reached 108 billion yuan. On the same day, the announcement issued by Xiaomi Group disclosed that Xiaomi's smart electric vehicle business invested 10 billion yuan in the first phase, and it is expected to invest 10 billion US dollars in the next 10 years.

Lei Jun also said that he had experienced complex psychological tug -of -war on Xiaomi's entry into the car industry. Earlier, when the executives were studying and exploring the prospects of electric vehicles, they were very resistant to their hearts at first, and once had "we spent 5 years before it was easy to make the mobile phone business today, becoming the third in the world. Will you be distracted if you do n’t finish the car? "

There is a voice that the deceleration of Xiaomi Group in the mobile phone field may be related to Lei Jun's focus on the car -making project. According to Xiaomi insiders, as long as Lei Jun works in Xiaomi Science and Technology Park, almost 2/3 of the time is in Xiaomi Motors.

Time passed by, in a blink of an eye on August 11 this year, at the new product conference of Xiaomi, Lei Jun made a greater magnificent for Xiaomi Motor on the basis of the goal of "mass production in the first half of 2024". Objective -rushed to the first echelon of autonomous driving in 20124.

After 500 days and nights, Xiaomi ’s autonomous driving team has grown to more than 500 people. The first phase of R & D investment has reached 3.3 billion yuan. At present, Xiaomi’ s autonomous driving has entered the test stage. The test car will be tested across the country.

"The current progress is fast, I believe we can do it." At the press conference, Lei Jun announced to the outside world the latest progress of Xiaomi Motors after 500 days of declared cars, and demonstrated the automatic identification obstacles owned by the autonomous driving project. There are many functions such as automatic turnover and active tract overtaking without protective scenes.

It is understood that through investment and acquisitions in the past year, Xiaomi has deepened his layout in the automotive field to the three electrical systems, visual sensors, lidar, chips, autonomous driving solutions, vehicle smart products, smart cockpit and other links, and settled it. The technical layout strategy of full -stack self -acting algorithm.

However, Xiaomi is currently delayed by obtaining an independent production car. Therefore, there are rumors in the market that Xiaomi Group is talking to BAIC Group on cooperating to manufacture the production of electric vehicles. Xiaomi may acquire Beijing Hyundai Second Factory. In addition, some people familiar with the matter said that Xiaomi Motor may take over the production base of BAIC New Energy in Laixi, Qingdao. As soon as rumors came out, the stock price fluctuations of both sides of the scandal sparked. On that day, the stock price of Xiaomi Group rose by more than 2%, and the stock price of many listed companies under BAIC Group also moved. Among them, Hong Kong stocks Beijing Automobile once rose nearly 30%. Rose more than 9%. However, BAIC responded to the gossip between the two parties, "I have never heard of it."

Since then, there have been rumors in the market that Xiaomi will insist on self -built factories, without foundry, no acquisition, Xiaomi's first car will be a car, and it is expected that the price will exceed 300,000 yuan. However, these rumors have not been officially confirmed. Lei Jun also said before that in the next two years, it will no longer rumor the news about Xiaomi cars, nor will it introduce any latest progress about Xiaomi cars.

It is worth mentioning that while Xiaomi ’s smartphone business revenue declined in the second quarter, the research and development costs were rising. In the second quarter, Xiaomi's research and development costs reached 3.763 billion yuan, an increase of 22.8%year -on -year. R & D expenses reached 611 million yuan, accounting for 16%of total R & D expenses.

Industry insiders pointed out that as the smartphone industry has a huge breakthrough in the short term and market competition has entered the era of stock competition, cars may become a new hope for Xiaomi in the future. However, compared with the smartphone business, it is more difficult to produce projects for vehicle manufacturing and higher requirements for safety. What Xiaomi has to build new energy vehicles with autonomous driving functions. Xiaomi needs long -term investment in huge funds, and this will sacrifice the profit brought by its mobile phone business to a certain extent, affecting the company's cash flow.

Right now, only more than a year before Xiaomi is expected to deliver the car in 2024. Will Xiaomi submit the answer sheet of the car construction on time, and can the answer sheet get the high score of the market? Radar Finance will continue to pay attention.

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