Phone Giant Xiaomi Jumps to Two-Year High After Profit Beat
- Earnings boosted by premium phone business, overseas markets
- Morgan Stanley, CICC lift price targets after profit doubles
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Xiaomi Corp.’s shares leapt 11.4% after inroads into the Chinese market for high-end smartphones and strong growth overseas helped the company report better-than-expected profit.
The stock climbed its most in two years in Hong Kong, taking its 2020 gains to 98%. The Chinese smartphone maker more than doubled net income to 4.49 billion yuan ($716 million) in the June quarter, beating the highest analyst estimate. Sales increased 3.1% to 53.5 billion yuan. Xiaomi’s overseas business has recovered to pre-Covid-19 levels, acting Chief Financial Officer Wang Xiang said Wednesday.