Key Takeaways:
Xiaomi Corp. continued its significant share buyback program, repurchasing 3.2 million of its Class B shares for approximately HK$100 million on May 12, according to a filing with the Hong Kong Stock Exchange.
The latest purchase is part of an aggressive buyback strategy that has seen the tech giant spend roughly HK$4.7 billion on its own shares in 2026, building on the HK$6.3 billion repurchased last year, as reported by Boerse-Global.
The consistent buybacks arrive as Xiaomi's stock continues to struggle, trading down 23.6 percent year-to-date despite the company's EV division reporting record deliveries in April. Shares closed Friday at €3.43, well below their 200-day moving average of €4.56.
Management is using the repurchases to signal confidence while the market awaits the company's first-quarter earnings on May 26. The results will be a key test of whether smartphone profitability can support the firm's capital-intensive push into electric vehicles and battery manufacturing.
Xiaomi's operational narrative in its auto division contrasts sharply with its stock performance. The company delivered a record 36,702 electric vehicles in April, bringing the year-to-date total to 117,558. To meet its ambitious full-year target of 550,000 vehicles, the monthly delivery rate must increase substantially from its current peak.
Strategically, the company is moving to control more of its supply chain by establishing a subsidiary to build a battery factory. This move aims to reduce reliance on major suppliers like CATL and BYD and could improve long-term margins on its vehicles, which currently see traction batteries account for up to 45 percent of total cost.
While the ongoing share repurchases may offer psychological support to the stock price, they do not resolve the underlying investor concern about profitability. The upcoming earnings report on May 26 is the next major event, where investors will look for evidence that the high-margin electronics business can fund the EV expansion without a significant drag on group profitability.
This article is for informational purposes only and does not constitute investment advice.
