XIAOMI(HK:01810) Sou Hu Cai Jing·2025-11-20 15:00Core Viewpoint - Xiaomi Group's stock price has been declining, leading to a market capitalization drop below 1 trillion HKD, prompting the company to initiate a significant share buyback to signal confidence in its future prospects [2][4]. Group 1: Stock Performance and Buyback - Xiaomi's stock price fell to 37.7 HKD, with a market cap of 981.8 billion HKD as of the latest close [2]. - On November 20, Xiaomi announced a buyback of 13.5 million shares at an average price of 37.61 HKD, totaling over 507 million HKD, marking the largest single-day buyback since its listing [2]. - The buyback had a positive effect, with the stock price recovering by 2.89% at the close of trading [2]. Group 2: Automotive Milestone - Xiaomi celebrated the production of its 500,000th vehicle, achieved in just over 1 year and 7 months, which signifies a major milestone for the company [4]. - CEO Lei Jun emphasized that this achievement validates Xiaomi's capabilities across the entire automotive value chain and marks a new phase of scaling for Xiaomi's automotive business [4][6]. Group 3: Financial Performance - In Q3 2025, Xiaomi reported revenue of 113.12 billion CNY, a 22.3% increase from 92.5 billion CNY year-over-year, with operating profit rising by 150.1% to 15.11 billion CNY [7][9]. - The operating profit margin reached 13.4%, the highest in recent years [7]. - Xiaomi's electric vehicle segment generated 28.3 billion CNY in revenue, with a notable achievement of turning a profit in this segment for the first time, reporting 700 million CNY in operating income [9]. Group 4: Challenges and Market Perception - Despite strong financial results, Xiaomi's stock has faced significant declines due to various factors, including underperformance in smartphone sales and external market pressures [9]. - Criticism has been directed at Xiaomi's management regarding dividend policies and product quality, particularly in comparison to established competitors [10]. - The company is urged to improve product quality and investor relations to mitigate negative market sentiment and restore confidence [11].