Key Takeaways:
- Xiaomi approved a HKD 20 billion share buyback plan valid for 12 months.
- The new program starts after the June 2026 AGM and runs until 2027.
- The company previously repurchased ~400 million shares for HKD 14.6 billion.
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Xiaomi authorizes HKD 20 billion buyback as existing plan nears expiry
Xiaomi Group authorized a HKD 20 billion share buyback, as management bets the stock is undervalued after spending HKD 14.6 billion on prior repurchases.
"The new buyback plan reflects the board's confidence in the company's long-term business prospects and its commitment to enhancing shareholder value," the company said in a filing.
The new program authorizes repurchases of up to HKD 20 billion in Class B ordinary shares over 12 months, effective after the company's annual general meeting on June 2, 2026, until the 2027 AGM. Under the existing plan, Xiaomi bought back approximately 400 million shares for about HKD 14.6 billion as of the announcement date.
The buyback could provide price support for Xiaomi shares, which have faced pressure amid a competitive smartphone market in China. The HKD 20 billion program represents a significant capital allocation commitment from the Beijing-based company, which also competes with Huawei Technologies Co. and Apple Inc. in the premium smartphone segment. Investors will watch for the stock's reaction when trading resumes, with the buyback's execution pace over the next 12 months serving as a key indicator of management's conviction on valuation.
This article is for informational purposes only and does not constitute investment advice.
