Huami (HMI:NYSE), a Chinese smart wearables vendor that has a strong partnership with the world’s fourth-largest smartphone brand Xiaomi (01810:HK), will release its second-quarter financials on August 18, 2020.
The short-term downturn caused by political factors introduces a bottom-fishing opportunity, as the company’s fundamentals could support a much higher stock price at USD 20.15 per share according to the intrinsic valuation approach and the peer comparison below.
Key assumptions
For the past three years, the company realized highly fluctuated y-o-y revenue growth at 32%, 78% and 59% respectively, yet to reach a stable and scalable