Key Takeaways:
Key Takeaways:
Xiaomi-W (01810.HK) rose 5.64 percent to HKD 22.86 on Wednesday, its highest level since mid-May, after the company said June electric vehicle deliveries exceeded 30,000 units for the third straight month. Trading volume reached HKD 1.89 billion, with 83.8 million shares changing hands.
"The sustained delivery momentum above 30,000 units signals Xiaomi's transition from brand launch into scaled production," said Kevin Ip, equity analyst covering HK-listed technology names. "The upcoming product cycle, including the YU7 SUV variants and potential extended-range models, provides multiple catalysts for the second half."
The June result extends a recovery from a slow first quarter. Deliveries spiked above 39,000 units in January as backlogged orders were fulfilled, then slipped to a 20,000-to-25,000 range in February and March amid the Lunar New Year holiday and production line adjustments. Since April, volumes have held above 30,000, supported by gradual capacity releases for the refreshed SU7 sedan.
Xiaomi's EV business remains in an investment phase. The company posted an operating loss of 3.1 billion yuan in the first quarter, underscoring the pressure to scale production toward profitability. Cumulative deliveries for the first half of 2026 are estimated at nearly 180,000 units, according to data compiled by CnEVPost, leaving the company on track toward its full-year target of 550,000 units.
The stock's rally also lifted sentiment across Hong Kong-listed Chinese EV names. The Hang Seng Index added 0.8 percent in afternoon trading, while the Hang Seng Tech Index rose 1.2 percent, with Xiaomi as the top gainer among its components. The broader sector has been supported by improving delivery data from multiple Chinese EV makers in recent weeks.
Goldman Sachs reiterated its Buy rating on Xiaomi-W in a note Wednesday, flagging the third quarter as a catalyst-rich period with potential inflection points from new model launches and capacity expansion at the company's second plant. The brokerage pointed to the YU7 GT, a high-performance SUV variant launched in May with a starting price of 389,900 yuan, as a key driver for premium segment share gains.
Xiaomi is also preparing to enter the extended-range electric vehicle market, having received regulatory approval last month to produce such vehicles at its Beijing plant. The move would put the company in direct competition with Li Auto and Huawei-backed Aito, which dominate China's extended-range SUV segment.
This article is for informational purposes only and does not constitute investment advice.
