Xiaomi Group to join HK Stock Connect, founder says 5G phones launch next year
Oct 22, 2019 (China Knowledge) - Yesterday Xiaomi Group (1810) shares price rose by 5.26% to HKD 9.0 with a market capitalization reaching HKD 216.2 bln.
Last week, the Shanghai and Shenzhen exchanges came out with amended rules. CITIC Securities reported in a research that Xiaomi, as a company with the same shares and different rights, has met the requirements of the amended rules to place in the Hong Kong Stock Connect. The entry may take place as early as Nov.
The current market value of Xiaomi Group is HKD 216.2 bln, which corresponds to 22 times of static PE and 17 times of dynamic PE, and its valuation is at a historical low. Xiaomi may have some room for valuation improvement after joining HK Stock Connect.
CITIC Securities for the first time gave Xiaomi Group a buy rating, at a price of USD 11. It believes Xiaomi's smartphone business is relatively robust and that IoT is contributing to its rapid growth. If Xiaomi joined the stock connect program allowing more mainland China’s investors, it could expect incremental capital inflows.
Xiaomi CEO Lei Jun said at the 6th World Internet Conference that Xiaomi will launch more than 10 5G phones next year, covering medium, high and low levels.
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