XIACY - Xiaomi Corporation: Geographic Diversification Is A Double-Edged Sword
Elevator Pitch
I maintain a Neutral rating on Hong Kong-listed internet company and smartphone manufacturer Xiaomi Corporation (OTCPK:XIACY) (OTCPK:XIACF) [1810:HK].
This is an update of my prior article on Xiaomi Corporation on December 18, 2019. Xiaomi's share price has increased by +22% from HK$10.52 as of December 16, 2019 to HK$12.86 as of June 8, 2020. Xiaomi currently trades at 31.7 times trailing twelve months' P/E and 23.3 times consensus forward next twelve months' P/E.
Xiaomi's 1Q2020 financial results were above expectations with its geographical diversification being a key positive factor,