Daily Investment Strategy

Daily focus：Xiaomi（1810）

Data released by the National Development and Reform Commission shows that during this year's Spring Festival (January 28 to February 4), the national consumer goods trade-in program was vigorously carried out. Sales of relevant consumer goods such as automobiles, home appliances, furniture, and mobile phones and other digital products reached 8.6 million sets, with sales exceeding RMB 31 billion. Among them, home appliance sales revenue increased by approximately 166% yoy, and mobile phone sales revenue increased by approximately 182% yoy. In recent years, Xiaomi has transformed from "mobile phone x AIoT" to "People-Car-Home Full Ecosystem", seamlessly integrating personal devices, smart home products, and automobiles, which can fully benefit from national policies. Xiaomi mobile phones have a market share of 18.1% in the RMB 3,000–4,000 price range and 22.6% in the RMB 4,000–5,000 price range. Xiaomi's customer base is highly sensitive to the introduction of policies and can directly benefit from them. In terms of home appliances, Xiaomi is making great effort to create innovative products with self-developed technologies. In 3Q24, shipments of air-conditioning products exceeded 1.7 million units, a yoy increase of more than 55%; refrigerator product shipments exceeded 810k units, a yoy increase of more than 20%; washing machine product shipments exceeded 480k units, a yoy increase of more than 50%. Among them, the shipment volume of refrigerators and washing machines hit record highs. The country's consumer goods trade-in policy will not only stimulate Xiaomi's customer base to purchase new mobile phones, but also help the sales of home appliance products. Automobile development of Xiaomi is also a highlight. In January 2025, Xiaomi SU7 deliveries once again exceeded 20,000 units. Currently, deliveries have exceeded 20,000 units for 4 consecutive months, and the full-year delivery target for 2025 is 300,000 units. Xiaomi previously announced that it has officially launched charging network cooperation with NIO, Xiaopeng, and Li Auto. According to the announcement, more than 14,000 NIO charging piles, more than 9,000 Xiaopeng charging piles, and more than 6,000 Li Auto charging piles will be fully connected to Xiaomi's charging map, further strengthening the coverage and ease of use of charging facilities. With the continuous increase in automobile deliveries, Xiaomi's move can meet customers' increasing needs for charging. The market is currently paying attention to news such as Xiaomi's release of Mi 15 Ultra, SU7 Ultra, and YU7. Overall, Xiaomi has a positive prospect, and its investment value remains.

S&P 500 index calmly responded to tariff concerns, as Nvidia led tech stocks higher

The S&P 500 index closed higher on Monday, as Nvidia (NVDA) led tech stocks to rise, offsetting concerns about tariffs. The January CPI report will be released on Wednesday, followed by the initial jobless claims and Producer Price Index on Thursday. Federal Reserve Chairman Powell will also testify to Congress on Tuesday. It is expected that when he delivers his semi-annual monetary policy testimony, he will have to respond to comments and questions mainly focused on the potential impact of tariffs on the U.S. economy. Meanwhile, Trump told reporters on Sunday that he plans to announce new 25% tariffs on Monday, targeting imported steel and aluminum. After Trump announced more trade tariffs on commodity imports, demand for safe-haven assets increased, and gold prices hit a record high on Monday.

Hong Kong Stock Connect had a net inflow of HK$16.4bn Monday of which Tracker Fund (2800) had the largest net inflow, reaching HK$4.35bn; followed by HSCEI ETF (2828). SMIC (981) recorded the largest net outflow at $0.10bn, followed by Tencent (700).