Xiaomi (SEHK:1810) Is Down 11.2% After Doubling Net Income on Strong Q3 Results Has the Bull Case Changed?

• Xiaomi Corporation recently reported its third quarter and nine-month earnings for 2025, with quarterly sales reaching CNY 113.12 billion and net income at CNY 12.27 billion, both increasing compared to the previous year.
• Net income more than doubled year-on-year, reflecting significant gains in both sales and earnings per share, highlighting strong operational execution.
• We'll explore how Xiaomi's substantial sales and net income growth add new context to its investment narrative and future growth prospects.

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Xiaomi Investment Narrative Recap

Owning Xiaomi stock means believing in the company's ability to expand its AIoT ecosystem, move upmarket in smartphones and appliances, and profitably break into new product segments such as electric vehicles. The latest quarterly results, with net income more than doubling year-on-year, are impressive, but do not erase the short-term risk of margin pressure as competition intensifies and premiumization remains a work in progress in key markets.

One recent announcement closely tied to these results is Xiaomi's new strategic alliance with BASF Coatings, which aims to co-develop innovative automotive paint colors over three years. This development is directly relevant to Xiaomi's ambitions in smart mobility and electric vehicles, aligning with one of the company's major growth catalysts as it seeks to diversify beyond core consumer electronics.

By contrast, investors should be aware that even with strong earnings growth, there is still lingering uncertainty around...

Read the full narrative on Xiaomi (it's free!)

Xiaomi's narrative projects CN¥765.2 billion revenue and CN¥69.6 billion earnings by 2028. This requires 21.3% yearly revenue growth and a CN¥32.4 billion increase in earnings from CN¥37.2 billion today.

Uncover how Xiaomi's forecasts yield a HK$62.94 fair value, a 62% upside to its current price.

Exploring Other Perspectives

Seventeen Simply Wall St Community members estimate Xiaomi’s fair value from HK$31.49 to HK$80.25, offering a wide set of expectations. This diversity highlights how ongoing price competition remains a top concern among many market participants.

Explore 17 other fair value estimates on Xiaomi - why the stock might be worth over 2x more than the current price!

Build Your Own Xiaomi Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Xiaomi research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Xiaomi research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Xiaomi's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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