Even as top-line growth slows, Tuesday's results show resilience in Xiaomi's core. The company's flagship Mi 9 phone and other models eked out 5% year-on-year increase in revenue for the three months to June. India remained a bright spot: Xiaomi has fended off compatriot Huawei and the $240 billion Samsung Electronics to retain a leading 28% market share, according to research firm IDC. Xiaomi's other gadgets, including electric scooters, air conditioners and internet-connected TVs, also helped the company swing to an overall operating profit from a loss a year earlier.
Investors are losing faith. Xiaomi has lost more than half its market value since its shares peaked in July 2018. But the stock still trades at some 15 times forward earnings, Refinitiv data shows, above the roughly 10 times electronics peers like PC-maker Lenovo and appliance specialist Haier Electronics fetch.