‘Xiaomi to top revenue target by 18pc’
HONG KONG: Chinese smartphone maker Xiaomi Inc has told bankers it would top its annual revenue target by as much as 18 per cent, said sources, marking a comeback from a sales slump in recent years that triggered a business overhaul.
Xiaomi, which has been hearing bank pitches for what could be the world’s biggest tech float next year, will rake in a net profit of at least US$1 billion (RM4 billion) this year, banker projections based on the company’s revenue estimate of US$17 to US$18 billion show.
Profits are estimated to reach US$2 billion next year.
The calculations also took into account data on operating costs provided by the company, said the sources.
Bankers and analysts expect Xiaomi’s profits to continue growing sharply into 2019, which one source said would make a US$100 billion listing valuation look “reasonable”.
Xiaomi was valued at US$46 billion in a 2014 funding round, the world’s most valuable startup for a brief period. Its sales stagnated over the next two years as the firm overextended itself launching in new markets while being hammered at home by rivals including Huawei Technologies, Vivo and Oppo.
The maker of budget smartphones has since branched out into selling accessories and home appliances.
In the third quarter of this year, Xiaomi overtook Apple to become China’s No. 4 smartphone vendor, according to International Data Corp. Reuters