Xiaomi’s Share Buyback Signals Management’s Conviction as EV Rivals Close In
Published on 04/24/2026 at 00:00 | Redaktion boerse-global.de
Xiaomi’s stock is hovering just above its 52-week low, but management is betting its own money that the market has got it wrong. The Chinese tech group spent roughly 146 million HKD on 23 April to repurchase 4.7 million of its own B-shares on the Hong Kong exchange — a clear vote of confidence from a boardroom that sees the current valuation as too cheap to ignore.
The timing could hardly be more fraught. At 3.39 euros on German exchanges, the stock sits barely a whisker above the trough hit on 15 April and has shed roughly a quarter of its value since the start of the year. That puts it almost 50 percent below the 2025 high and deep in bear-market territory. The 200-day moving average, a key technical gauge, now stands at 4.69 euros — far above the current price.
A Rival’s Model Blitz Puts the SU7 in the Crosshairs
The share buyback comes as Xiaomi’s automotive ambitions face their sternest test yet. Harmony Intelligent Mobility, the electric-vehicle alliance backed by Huawei, has unveiled six new models that take direct aim at Xiaomi’s fledgling car lineup. The Shangjie Z7 starts at just under 220,000 RMB, with the T-variant priced exactly 10,000 RMB higher — both slotting in perilously close to the Xiaomi SU7. Standard equipment includes Huawei’s LiDAR technology and the Qiankun ADS 4.1 intelligent driving system.
The pressure is not limited to sedans. Harmony’s newly revealed Aito M6 is designed to poach market share from Xiaomi’s upcoming YU7 family SUV. More than a product-by-product assault, the offensive targets the very ecosystem Xiaomi is trying to build: a seamless web linking car, smartphone and smart-home devices. Harmony’s first-quarter delivery numbers underscore the threat — its platform shipped roughly 113,000 vehicles, a near-42 percent jump year-on-year.
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Xiaomi’s own sales figures have taken a worrying turn. Wholesale deliveries of the SU7 slumped to just under 7,900 units in March, a drop of about 73 percent from the previous month. The company has so far resisted cutting prices, instead pushing out an over-the-air software update that lowers the activation threshold for certain driver-assistance features from 1,000 to 300 kilometres, letting new owners access the AI-powered functions sooner.
AI Push and a Valuation Gap
Away from the showroom floor, Xiaomi is trying to build a parallel growth engine. The company has launched the public beta of its new MiMo V2.5 family of AI models, covering a range of speech and text-processing capabilities. The Pro variant stands out with a context window of up to one million tokens for complex tasks, and Xiaomi is releasing select versions as open-source models to encourage a wider developer ecosystem.
On the fundamentals, analysts see a disconnect between the stock price and the underlying business. A discounted cash-flow model puts Xiaomi’s fair value at 43.53 Hong Kong dollars — roughly 27 percent above the current level of around 32 HKD on its home exchange. The buyback, which demonstrates that the company has ample cash reserves despite heavy spending on software and vehicle technology, is one way to narrow that gap.
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The technical picture, however, remains fragile. The relative strength index has climbed to nearly 80, signalling that the stock is technically overbought even as the price keeps falling — an unusual combination that often precedes a sharp move. The next major test for investor confidence will be April’s delivery numbers, which will show whether March’s plunge was a one-off blip or the start of a deeper trend. If demand falters under the weight of Huawei’s upgraded systems, the stock risks slipping below its year-low of 3.38 euros.
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