Xiaomi: China’s Technology Powerhouse
Published September 8 2026
Current Price
28.44 HKD
Fair Value
65 HKD
High margin EV business is building incredibly strong momentum with Xiaomi entering the European market in 2027, having signed MoUs with 8 German dealers.
Gross margin in the fast growing EV arm of the company is forecast to reach close to 30% by 2029 due to improving effeciencies and greater economies of scale.
Xiaomi has a strong international distribution network, which can be used to sell more lucrative and high margin products, particularly EVs.
Maintained top 3 global smartphone shipment ranking for the 24th consecutive quarter, with a market share of 14%.
Overview
Xiaomi produces everything from cutting edge smartphones, tablets, wearables, TVs, kitchen appliances, vacuums, tools, (along with a whole host of other products) and most recently electric cars (EVs). It is one of the major players, both in its home market of China and internationally, in the electronics and internet of things (IoT) spaces.
Xiaomi have suceeded in their EV ambitions when compared to deep pocketed competitors in the US, such as Apple. It took the company less than 3 years to make an EV from scratch, which is incredibly impressive, even for a company with high technical prowess. These EVs have a significantly higher margin than their current core business. With a ramp up in production and economies of scale in their EV business, gross margins for EVs are forecast to reach close to 30%.
The company’s strategic vision ‘Human x Car x Home’ is aiming to link personal devices, EVs and IoT devices into one smart ecosystem. This will allow Xiaomi to capture new markets through existing loyal customers and is a strong positive move from the company’s leadership.
Momentum building
Xiaomi has been building a lot of momentum and long term goodwill in their brand outside of China. It is incredibly popular in India and Southeast Asia (which are huge markets with large populations) and South America and Europe, the latter of which is a fast growing region for the company. Below is a summary of videos by popular Youtubers that have been very well received by large audiences., showing the company’s increasing reach.
| Youtube title | Youtube channel | URL | Date | Views | Likes |
|---|---|---|---|---|---|
| I tested the Craziest Xiaomi Gadgets! | Mrwhosetheboss | https://www.youtube.com/watch?v=neIYdLysqlk | 13 Nov 2024 | 16m | 330k |
| I tested even CRAZIER Xiaomi Gadgets! | Mrwhosetheboss | https://www.youtube.com/watch?v=iiOi4rD83kM | 9 Jan 2026 | 5.4m | 144k |
| Xiaomi 17 Pro Max review - Apple are you seeing this!? | Mrwhosetheboss | https://www.youtube.com/watch?v=0jHtyF_rCqU&t=153s | 26 Sept 2025 | 12m | 277k |
| Driving Xiaomi's Electric Car: Are we Cooked? | Marques Brownlee | https://www.youtube.com/watch?v=Mb6H7trzMfI&t=34s | 5 Dec 2025 | 11m | 277k |
| Xiaomi 17 Pro Max: An iPhone... But Better! | Marques Brownlee | https://www.youtube.com/watch?v=eou_g_cYCew | 14 Oct 2025 | 7.3m | 198k |
| The Xiaomi SU7 Ultra will END European cars forever | carwow | https://www.youtube.com/watch?v=IJA8UiZW7lk&t=1383s | 8 Oct 2025 | 2.9m | 53k |
| Living with Xiaomi's Electric Car - It's Insane | Auto Focus | https://www.youtube.com/watch?v=sdSusCDZcDg&t=179s | 8 Dec 2025 | 2.3m | 62k |
| The Xiaomi SU7 Is a Bargain Chinese Luxury Sport Sedan | Doug DeMuro | https://www.youtube.com/watch?v=XX3rRntdyYc | 26 Dec 2024 | 1.2m | 27k |
| МЫ ПРОВЕРИЛИ НЕВЕРОЯТНЫЕ ГАДЖЕТЫ XIAOMI | GopherVid | https://www.youtube.com/watch?v=oubManIhfHM | 31 Dec 2025 | 2.7m | 46k |
| How China’s Xiaomi Beat Apple and Is Taking on Tesla | Bloomberg Originals | https://www.youtube.com/watch?v=i0Xrj1ILCHw | 22 Aug 2025 | 681k | 9k |
EV unit sales history
2024
2025
2026
Xiaomi has been steadily rampimg up their monthly deliveries since they began shipping EVs and have notably increased deliveries since June 2025, with December 2025 marking a key milestone with more than 50,000 deliveries made in the month. All deliveries to date have been in mainland China as of yet - demand is very high in China, however, Xiaomi’s strategy is to fully focus on the Chinese market before catering to international markets. This, in theory at least, should allow the company to scale its production, improve margins and then start exporting. The company has shown great tenacity and discipline in initially building an EV and has now announced expansion into Europe, initially through Germany in 2027.
Xiaomi has also recently announced its new SkyNomad line of large space SUVs. This includes the SkyNomad N90 Max, a 7 seater extended range SUV, and SkyNomad N70 Max, a 5 seater extended range SUV. These two new additions compliment the more sporty Xiaomi SU7 and Xiaomi YU7. These additions will provide further growth opportunities for Xiaomi in both the domestic Chinese market and overseas export market.
Q2 2025 Revenue breakdown (RMB Millions)
Q2 2026 Gross Profit Breakdown (RMB Millions)
Q3 2025 Gross Margin %
Comparable company valuation
| Xiaomi | Samsung | Apple | Tesla | BYD | |
|---|---|---|---|---|---|
| Price / Earnings | 16.73 | 11.93 | 38.12 | 205.72 | 23.6 |
| Price / Book | 2.26 | 3.06 | 44.59 | 17.11 | 2.84 |
| Price / Sales | 1.5 | 3.07 | 10.39 | 12.85 | 0.91 |
Samsung’s valuation metrics are heavily skewed due to the recent boom in its chip business. Xiaomi stock is cheap when compared to its peers and significant potential value can be created should the company hit its targets. It is expanding heavily into the EV sector and has carried out a major push of its consumer electronic brand, Mijia. At IFA 2026, Mijia showcased washing machines, air conditioning systems and fridge-freezers.
Risks
European tariffs on Chinese EV exports - The EU may turn to protectionism and increase tariffs on Chinese EV exports to keep European manufacturers competative. In any case, European automakers are on the decline (VW is looking to cut 50,000 jobs and plant closures are also very likely) providing a very good moment for Xiaomi to be entering the European market.
Domestic EV price war - There is fierce competition in China with aggressive discounting taking place to retain market share.
Execution - Scaling in any business is challenging, however, rapidly scaling in a new business segment needs careful long term contingency planning to ensure operational efficiency.
Xiaomi’s brand is getting stronger across key markets, with new users being added to its ecosystem at pace. The board and management team have executed a good strategy to date, but importantly have a clear strategy on how to take Xiaomi to the next level, increase profitability and create shareholder value.
Disclaimer
This report has been prepared by Nabla Delta for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The opinions, estimates, and projections contained herein are those of the firm as of the date of publication and are subject to change without notice. Nabla Delta may from time to time have positions in or options on the securities mentioned in this report and may trade for their own account.
This research is based on information obtained from sources believed to be reliable, but we do not guarantee its accuracy or completeness. Neither Nabla Delta nor any of its affiliates accept any liability whatsoever for any direct or consequential loss arising from the use of this document or its contents.
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