On March 25, Xiaomi Group completed the placement of 800 million shares at a price of HK$53.25 per share, a 6.58% discount to the closing price of the previous day. It is expected to raise a net of HK$42.5 billion-the transaction is the largest equity financing in the Hong Kong stock market during the year.

Affected by the news, Xiaomi's share price fell 5.53% on the opening day, with a cumulative increase of 56% during the year.

Although the placement is at a discount, the pricing range is rumored to be higher

Judging from the details of capital operation, this placement adopts the "old first and new first" model, with the controlling shareholder Smart Mobile Holdings Limited as the seller, avoiding the operation method of directly diluting the rights of existing shareholders, which not only ensures financing efficiency but also takes into account short-term market sentiment.

The placed shares account for 3.2% of the existing share capital, and the dilution ratio is controlled at 3.1% after the subscription is completed, showing the management's consideration of the stability of the equity structure.

It is worth noting that this pricing range is finally fixed near the upper edge compared with the rumored HK$52.8 - 54.6 on March 24, reflecting institutional investors 'recognition of Xiaomi's fundamentals-after all, its 2024 financial report shows that total revenue The year-on-year increase was 35% to 365.9 billion yuan, and the adjusted net profit reached 27.23 billion yuan, a record high, which provided solid performance support for capital operations.

The allocation logic of capital investment reveals the shift of Xiaomi's strategic focus.The vague expression of "business expansion" in the announcement is embodied in the smart electric vehicle business in the financial report data. Although the sector achieved revenue of 32.1 billion yuan in 2024, the adjusted net loss still reached 6.2 billion yuan. Although the loss in the fourth quarter narrowed to 700 million yuan, the 2025 delivery target of 350,000 vehicles means that production capacity expansion, channel construction and R & D investment still need to continue blood transfusion.

Compared with BYD's placement size of HK$43.5 billion at the beginning of the year, Xiaomi's catch-up in the electric vehicle field obviously requires more aggressive capital expenditures.The increase in R & D investment directly points to the construction of core technical barriers, especially in key areas such as autonomous driving and vehicle systems. Xiaomi needs to break through the patent blockade of pioneers such as Tesla and Huawei.

Xiaomi's share price has generally risen strongly this year

After the beginning of 2025, Xiaomi's share price continued its upward trend at the end of 2024, opening at HK$37.65 on January 2, and continued to rise due to multiple positive factors.On February 4, the stock price exceeded the HK$40 mark for the first time, and the total market value exceeded HK$1 trillion, setting a record high.The increase at this stage is mainly due to the high-end breakthrough in the smartphone business and the explosive growth of the automotive business.

Xiaomi 15 series mobile phones have established a firm foothold in the 6000 yuan price range. In 2024, shipments in the Q4 China market will increase by 29% year-on-year, driving a significant increase in gross profit margin; at the same time, the first mass-production model, the SU7, will deliver more than 136,000 units in 2024, far exceeding market expectations and becoming the core catalyst for the stock price.In addition, the commissioning expectations of smart home appliance factories and the layout of AI technology (such as the self-developed large model MiLM2) have further strengthened the market's confidence in Xiaomi's "full ecosystem of people, vehicles and homes" strategy.As of February 27, the stock price hit an intraday peak of HK$58.7, with a cumulative increase of 70% during the year.InvalidParameterValue

After entering March, Xiaomi's share price has undergone phased adjustments.It fell for three consecutive days on March 3, with an intraday low of HK$49.6, and the total market value fell back to approximately HK$1.3 trillion, mainly due to market profit-taking, overall fluctuations in technology stocks and investors 'concerns about delivery cycles.

However, this correction did not last long.In mid-March, with the release of the 2024 financial report (revenue of 365.9 billion yuan, a year-on-year increase of 35%; net profit of 27.2 billion yuan, a year-on-year increase of 41.3%), the stock price stabilized and rebounded. On March 19, the closing price reached HK$58.2, and the market value returned to HK$1.46 trillion.The recovery in market sentiment has also benefited from new product expectations, such as the upcoming release of AI smart glasses and MIX series mobile phones, as well as further clarity in the delivery target of the automotive business (350,000 units are planned to be delivered in 2025, a nearly threefold increase from 2024).InvalidParameterValue

There are significant differences among institutions on Xiaomi's valuation.Optimistic parties such as China International Capital Corporation raised their target price to HK$70, believing that the automotive business and AI technology will push the market value towards HK$2 trillion; while cautious views (such as JPMorgan Chase) point out that the current dynamic P/E ratio of 56 times lacks a margin of safety and need to be vigilant against market sentiment fluctuations.It is worth noting that on March 25, JPMorgan Chase took the lead in completing Xiaomi's rights issue financing of approximately US$5.3 billion. The funds will be used for R & D and production capacity expansion. Although this move dilutes equity in the short term, it is expected to consolidate its technological advantages in the long term.