As of February 13, 2025, Xiaomi Group's market value has exceeded one trillion Hong Kong dollars, a significant increase from over three hundred billion Hong Kong dollars a year ago. This growth is primarily attributed to Xiaomi's shift towards high-end products and the rapid development of new businesses. The company no longer solely relies on low-priced smartphones but instead achieves product differentiation through self-developed technologies (such as imaging and chip technology). For example, unlike the past reliance on cost-effective low-priced phones, Xiaomi now places greater emphasis on technological innovation and brand added value. It is expected that the price of the Xiaomi 15 Ultra smartphone will increase due to rising research and development and material costs. Lei Jun mentioned in a live broadcast, "The Xiaomi 15 Ultra is one of our highest-end smartphone series." This strategy indicates that Xiaomi is gradually changing its valuation logic, shifting from simple sales-driven metrics to a comprehensive consideration of product technological content, the proportion of high-end models, and brand influence. Additionally, Xiaomi's expansion into the automotive sector is also accelerating, with increasing delivery volumes for models like the SU7 and the introduction of new models in the future. The company's internet services have become a significant source of profit, boasting a gross profit margin of 77.45%. In Xiaomi's diversified product portfolio, sales of IoT products have also seen significant growth.
(Source: Google Finance)
In a recent internal meeting, Xiaomi reiterated its high-end strategy, with CEO Lei Jun stating that this is not just a short-term tactic but a necessary path to becoming a global technology leader. The upcoming flagship products, such as the Xiaomi 15 Ultra and SU7 Ultra, are expected to further strengthen this strategy. With strong performance in the high-end smartphone market and growth in its automotive business, Xiaomi is likely to continue solidifying its market value of one trillion Hong Kong dollars and move towards even higher goals.
What is Dollar-Cost Averaging in Stocks?
Dollar-cost averaging, also known as monthly stock investment, refers to an investment strategy where a fixed amount is used to purchase specific stocks at regular intervals. This approach allows investors to buy shares without needing to purchase a whole unit each time, instead buying a proportionate number of shares based on their set monthly investment amount.
For example, consider Mr. Chen, who wishes to invest in the Xiaomi in stages. Using the dollar-cost averaging feature, Mr. Chen invests HKD 1,000 each month, which uSMART uses to purchase shares at market price and deposits them into Mr. Chen's account. This way, Mr. Chen effectively buys around 6 shares of Xiaomi each week, achieving a low-threshold stock investment.
Advantages of Monthly Investment via uSMART
Choosing the right investment platform is crucial for dollar-cost averaging in stocks. Investing through the uSMART platform offers several significant advantages:
uSMART provides commission-free trading services, meaning investors do not have to pay commission fees for each stock transaction. This is particularly important for investors making regular investments, as accumulated commissions can significantly erode long-term returns. By investing through uSMART, you can allocate more funds to actual investments.
Besides commission-free trades, uSMART does not charge platform usage fees. This allows investors to enjoy a lower cost structure in long-term investments, further enhancing investment returns. This is especially beneficial for frequent small investments, as the absence of platform fees effectively reduces overall investment costs.
uSMART also offers the advantage of no custody fees, meaning you do not need to worry about management fees for account funds. This exemption provides investors with greater flexibility to manage liquidity and investment strategies.
The uSMART platform features a user-friendly interface, allowing investors to easily set up a monthly investment plan and automate their investment process. The platform supports various payment methods, enabling investors to adjust their investment amounts flexibly based on their financial situation and investment goals.
uSMART allows investors to make fractional share investments, meaning you can invest according to your set monthly amount even if you do not have enough funds to buy a whole share, further lowering the investment threshold and enabling flexible allocation.
How to Purchase Monthly Stocks on uSMART
Step 1: Log into the uSMART HK app and click "Trading" at the bottom right of the page.
Step 2: Click on "Dollar-Cost Averaging" in the second column of the page and select "All Dollar-Cost Averaging Stocks."
Step 3: Choose your desired dollar-cost averaging stock, select the investment amount, deduction method, and deduction date, then create your investment plan.
Once confirmed, the investment plan will take effect in real time.
(SOURCE: uSMART HK)