By Jiahui Huang
Xiaomi's shares hit a new intraday high in Hong Kong, supported by news that its new car model is eligible for a purchase tax waiver and analysts' positive views.
The Chinese company's shares rose 5.9% to 47.80 Hong Kong dollars, equivalent to around US$6.14, as of midday Tuesday, taking year-to-date gains to 39%. The shares touched HK$48.15, a new intraday high, early Tuesday.
The gains came after Xiaomi's YU7 sport utility vehicle, scheduled to be launched in June or July, was put on a list of vehicles eligible for exemption or reduction in purchase tax by China's Ministry of Industry and Information Technology late Monday.
Meanwhile, Xiaomi Chief Executive Lei Jun attended Chinese President Xi Jinping's Monday meeting with private business leaders, including Alibaba co-founder Jack Ma and DeepSeek's Liang Wenfeng.
Analysts are also optimistic on Xiaomi's outlook and its fourth-quarter results.
Xiaomi stock should gain from recent Chinese AI developments, government subsidies and its upcoming car releases, Daiwa analyst John Choi said in a note. The company's smartphone shipments and Internet-of-Things sales will likely benefit from the government subsidies, he added.
Citi analysts forecast the company's fourth-quarter earnings to be strong and beat market expectations, on a potential surprise in core business revenue growth, boosted by government subsidies and a favorable smartphone product mix.
Citi maintained a buy rating on the stock and Daiwa kept a outperform rating, while both raised their target prices.
The company will report fourth-quarter earnings March 18.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
February 17, 2025 23:49 ET (04:49 GMT)
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