Xiaomi Corp

A wave of postponed Hong Kong initial public offerings by Chinese companies is signaling that an overheated market is beginning to normalize. In Hong Kong trading on the afternoon of the 30th, Citi raised its target price for Guangzhou Automobile Group while maintaining a neutral rating, and JPMorgan initiated coverage of Chery Automobile with an overweight rating. Nomura pointed to accelerating licensing of Chinese new drugs by U.S. companies as a reason for its bullish view on drug discovery-related shares, while Citi issued a buy rating on Xiaomi, expecting a recovery in smartphone margins and an expansion of its EV business through new model launches. Share buybacks in the Hong Kong market totaled 28.6 billion yen across 97 stocks, and Shenzhen Hichain Technology closed at 215.2 Hong Kong dollars on its debut, up 265.7 percent from its offer price. In China, Standard Chartered flagged the possibility of additional monetary easing including cuts to the reserve requirement ratio, and DeepSeek released foundational software for Huawei's Ascend chips, taking a step toward reducing reliance on Nvidia.

Somchai Sitthichaisrichart, Managing Director of SIS Distribution (Thailand) Public Company Limited, or SIS, disclosed that the earnings outlook for the third quarter of 2026 remains strong, with sales of IT products continuing to expand, particularly for the Samsung and Xiaomi brands. Meanwhile, the solar cell business has grown as much as fivefold compared with last year, and it is expected to keep growing several times over next year from a larger base. At present, the company has approximately 100 to 200 customers or agents who buy products for resale. The company is being supported by government measures that provide 50,000 baht per household for solar installation, with a target of covering 1.5 million households, as well as a people's solar project of another 10,000 megawatts. However, in the third quarter of 2026, solar cell sales slowed because of heavy rain and because people delayed installations to wait for subsidies, so clear positive results are expected in the fourth quarter of 2026 through the first quarter of 2027. In the first half of the year, the company had total net profit of 525 million baht and total revenue of 15.785 billion baht, and it has set a target of return on equity, or ROE, of no less than 20%.

UBS forecasts that Chinese automakers will raise their global market share to 37% by 2030, up from 22% in the first half of 2026, as consumers increasingly accept Chinese car brands, supporting expansion beyond China. For the European market, UBS raised its forecast for Chinese brands' share to 20% by 2030 from 18%, compared with roughly 8% today, and growth is outpacing earlier expectations. A survey of 12,000 consumers by UBS Evidence Lab found that 36% of European respondents would consider buying an electric vehicle from a Chinese brand, with interest in Chinese brands in Europe rising by more than interest in Japanese and South Korean brands combined. Value for money was the most important factor, cited by 66% of those likely to buy a Chinese electric vehicle globally, while advanced technology was the second, at 61%. In its base case, UBS expects BYD, Geely, Chery, SAIC, Leapmotor and Xiaomi to be the Chinese manufacturers most likely to become major players in overseas markets. In a bull case, Chinese automakers' global market share could reach 45%, and 30% in Europe, by 2030, while a bear case could put it at 33% globally and 15% in Europe.

Huawei and Xiaomi have unveiled new flagship foldable smartphones ahead of Apple's latest product launch, with Huawei's Mate XT2 folding out twice into a tablet-sized display and Xiaomi's passport-sized 18 Fold supporting three apps side by side. Huawei enters from a position of strength, holding 22.6% of China's overall smartphone market in the second quarter versus Apple's 18.1%, according to IDC data cited by Reuters, and accounting for 68% of Chinese foldable shipments. Xiaomi's 18 Fold is priced from 10,999 yuan, or approximately $1,540, to 14,999 yuan, or $2,100, while Huawei's Mate XT2 starts at 19,999 yuan, or approximately $2,980, and reaches 24,999 yuan, or $3,725. Both Huawei executive Richard Yu and Xiaomi CEO Lei Jun flagged sharply rising memory costs at their launch events, and Apple's latest iPhone series is scheduled to be unveiled on September 9 amid unconfirmed expectations of a foldable entry. Xiaomi held 12.4% of China's overall smartphone market in the second quarter, leaving it far behind Huawei in foldable shipments.

Apple's first folding phone, the iPhone Duo, is drawing a tepid response from Chinese consumers focused on its price against established domestic rivals. Priced at 15,999 yuan, or $2,230, in China, the device was announced Wednesday and drew immediate pushback on social media platform WeChat, where one user said they would wait for the second-generation foldable next year. Apple shares climbed more than 3% after the launch event, but the company faces a key test in Greater China, its third-biggest market, which generates around 17% of total revenue and is one of the world's most competitive foldable-phone markets. Huawei, Xiaomi, Honor, Oppo and Vivo already sell devices across book-style, flip-phone and, in Huawei's case, trifold designs, and ahead of Apple's event Xiaomi and Huawei on Monday launched new flagship foldables, the Xiaomi 18 Fold and the trifold Mate XT2, priced at 10,999 yuan and 19,999 yuan. Huawei led China's smartphone market in both the first and second quarters according to Counterpoint, with Apple second, followed by Vivo and Oppo, while worldwide Samsung narrowly reclaimed the lead over Apple in second-quarter smartphone shipments and is expected to surpass Apple in foldable market share with a 32% share versus Apple at 25% and Huawei at 24%. Beyond price, Chinese social media users also raised concerns about the Duo's lack of a physical SIM-card slot, which may require mainland users to visit a carrier store for ID verification to activate an eSIM. Xiaomi's 18 Fold goes on sale Thursday, Huawei's Mate XT2 follows days later, and Apple's iPhone Duo pre-orders begin Oct. 16 with sales starting Oct. 23.

Apple entered its September 9 product event under pressure from Huawei and Xiaomi, with Huawei pricing its Mate XT2 at $2,980 and Xiaomi unveiling the $1,540 18 Fold. Apple shares closed at $319.97 after a 2.5% drop. In China, Huawei captured 22.6% of the smartphone market in the second quarter, beating Apple's 18.1%, and dominated foldables with a 68% shipment share. Apple's fiscal third-quarter revenue surged 16% to a record $109.4 billion, with iPhone sales of $54.25 billion, which accounted for roughly 49.6% of quarterly revenue. At $319.97, the stock trades 12.35% above its GF Value estimate of $284.79, and Apple must maintain its 50.1% gross margin to support its premium valuation.

On September 4, Sunwoda announced that its power battery subsidiary Sunwoda EV Battery completed a strategic financing round, with Li Auto investing 2.65 billion yuan for an 8.79% stake. Combined with its existing holdings, Li Auto's total shareholding reached 11.17%, making it the second-largest shareholder. After the financing, Sunwoda EV Battery's post-money valuation reached 30.145 billion yuan, while the parent company's stake was diluted from 26.38% to 24.06%, remaining the largest shareholder. On the same day, Xiaomi Auto announced a deep strategic partnership with Sunwoda, with its Pengcheng series models to be equipped with Sunwoda batteries on a large scale. Despite the backing of two major automakers, Sunwoda EV Battery still faces risks including profitability losses, quality control disputes, cooperation uncertainties, and equity dilution. Market reaction was muted, with the share price edging lower.

Xiaomi is set to unveil a new foldable smartphone on September 7, intensifying competition with Huawei and Apple. The launch is seen as part of the company's strategy to strengthen its presence in the high-end market. Meanwhile, Alibaba has made a minor upgrade to its flagship AI model, and Tencent has officially launched its "WorkBuddy" open platform, with over 100 companies participating. In addition, among China's emerging EV makers' August sales, Leapmotor performed well, while Seres Group fell below 30,000 units for the second consecutive month.

Today, the MSCI China Index adjustment takes effect after market close, with 33 new constituents added, including 31 A-shares such as Tongguan Copper Foil, Fenghua Advanced Technology, Huafeng Test & Control, Dingtai High-Tech, and KINGSEMI. Meanwhile, Inno Laser released its half-year report, with first-half operating revenue of 259 million yuan, up 19.02% year on year, and net profit attributable to the parent of 35.1507 million yuan, up 314.55% year on year. In addition, ChangXin Memory Technologies announced that its self-developed LPDDR6 memory has entered mass production and is first featured in the Xiaomi 18 Fold flagship foldable phone, marking the world's first commercial deployment of LPDDR6 products and breaking the monopoly of overseas manufacturers. China State Shipbuilding Corporation's wholly owned subsidiary Shanghai Waigaoqiao Shipbuilding, together with China Shipbuilding Trading, signed a contract with COSCO Shipping Assets for the construction of 12 21,700-TEU LNG dual-fuel container ships, with a total value of 2.688 billion US dollars, with delivery expected between 2028 and 2030. Shengyi Electronics' wholly owned subsidiary Ji'an Shengyi Electronics plans to invest 2.257 billion yuan to build a high-speed interconnect circuit board project, with a designed capacity of 445,900 square meters per year.

Taiwan Semiconductor Manufacturing (TSM) is set to produce advanced chips for Xiaomi, including the new Xring O3 processor, using its 3-nanometer technology, extending its reach into AI-focused consumer devices and autonomous driving products. The partnership involves three new Xiaomi-designed chips, highlighting how TSMC is securing additional high-value work beyond its traditional large chip designer customers. This demand for advanced AI hardware points to a broader trend across chipmakers, designers, and equipment suppliers, with TSMC positioned as a key supplier for consumer electronics companies seeking AI-capable processors. The clearest test of this shift will be how much of TSMC's future 3nm capacity is allocated to non-traditional customers like Xiaomi in upcoming quarterly disclosures and capital expenditure updates.

Kingsoft Cloud Holdings reported record total revenue of RMB3.07 billion for the second quarter of fiscal 2026, up 31% year-over-year, driven by an 82% surge in AI cloud gross billings to RMB1.33 billion, which now account for 56% of public cloud revenue. Adjusted gross margin improved to 15.4%, up 2.4 percentage points quarter-over-quarter, and adjusted operating profit turned positive for the first time with a record 4.0% margin. Adjusted net loss narrowed to RMB6 million from RMB300 million a year earlier, while capital expenditures including right-of-use assets rose to RMB3.3 billion from RMB2.9 billion last quarter. Xiaomi-Kingsoft ecosystem revenue grew 28% year-over-year to RMB810 million, representing 26% of total revenue, and management confirmed full-year capex guidance remains unchanged at RMB6.2 billion.

Xiaomi Corp reported record-high smartphone average selling price in Q2 2026, driven by product mix optimization and price increases that offset rising memory costs, while its AI large model MiMo V2.5 topped the global open-source model core volume ranking in August 2026. The company's smartphone business maintained its top-three global market share for the 24th consecutive quarter, ranking among the top three in 53 countries and regions, though shipments declined year-on-year as it prioritized profitability over volume. IoT overseas revenue grew significantly with over 640 new retail stores opened abroad, but overall IoT revenue fell due to a high base effect from national subsidies in China the prior year. The EV business delivered 104,199 vehicles in Q2 2026, marking the sixth consecutive quarter of year-on-year growth, and the new SkyNomad extended-range SUV series has received enthusiastic pre-orders ahead of its September launch. Internet Services global monthly active users reached a record 770 million with gross margin improving to 76.8%, while the Smart EV, AI, and other new initiatives segment posted an operating loss of RMB2.6 billion, reflecting heavy investment in AI and new businesses.

Counterpoint Research reported Thursday that rising component costs are pushing smartphone prices higher and weakening demand in the U.S. and China, with smaller manufacturers absorbing the sharpest blow. U.S. smartphone sales fell 5% year over year in the second quarter, while sales across the four largest manufacturers — Apple, Samsung, Motorola and Alphabet's Google — declined 4% and the rest of the market plunged 45%. Sales of phones priced below $100 tumbled 64%, and Counterpoint expects average selling prices to rise again in the third quarter as Apple increases iPhone 18 prices and Google launches Pixel 11 devices above Pixel 10 launch prices. In China, smartphone sales fell 8.6% year over year during the first 30 weeks of 2026, with Huawei remaining the market leader and Xiaomi climbing to second place after launching the REDMI Note 17 series despite price increases of 300 to 500 Chinese yuan across several product lines. Counterpoint warned that rising memory and system-on-chip costs will force additional price hikes in the second half, while spending on agentic artificial intelligence becomes a competitive necessity rather than a differentiator.

Mercedes-Benz Group AG sold only 1,153 units in China in the first half of 2026, a fraction of the more than 80,000 similarly priced SU7 sedans that Xiaomi Corp. delivered in the same period. The performance echoes the challenges faced by BMW AG, Volkswagen AG, and Porsche AG in China, where all reported second-quarter sales declines of at least 30%, worse than the overall market's drop.

The latest weekly large model call rankings from global multi-model aggregation platform OpenRouter show that the top five products are all developed by Chinese companies. Xiaomi's MiMo-V2.5 topped the list with 10.5 trillion tokens called in a single week, up 12 percent week-on-week. Two DeepSeek models ranked second and fifth, forming a high-low mix. Tencent's Hunyuan 3, online for just one month, saw a weekly surge of over 999 percent, making it the fastest-growing model. At the industry level, Guolian Minsheng Securities believes that accelerating AI application development is key to generating positive industrial capital returns from current AI capital expenditure. The leap in open-source model capabilities is greatly boosting application development. ByteDance's Doubao, Tencent's WorkBuddy, and Alibaba's Qwen are rapidly accumulating traffic, and the commercialisation of AI applications is about to begin. In the secondary market, the AI application index has fallen more than 30 percent from its high on 13 January, but rebounded violently by nearly 10 percent in the past week, with a single-day gain of over 5 percent on 31 July. The trio of Yidian Tianxia, Chinese Online, and Tianlong Group, dubbed the Yi Zhong Tian combination, has drawn attention. On the funding side, 28 AI application concept stocks saw net inflows of over 100 million yuan from major funds. BlueFocus topped the list with 2.419 billion yuan and hit the daily limit up, while Kunlun Tech saw net inflows exceeding 1 billion yuan and also hit the daily limit up. As of 2 August, among brokerages' August golden stock picks, Kunlun Tech received two recommendations, while Fengzhushou, Century Huatong, and Zhipu each received one. Century Huatong expects first-half net profit of 4.3 billion to 4.77 billion yuan, a year-on-year increase of 61.87 percent to 79.57 percent.

Xiaomi held an automotive technology presentation on the 30th, unveiling its new SUV series, Pengcheng. The event showcased the company's latest technologies and product lineup in the automotive business. Detailed specifications and launch timing were not disclosed.

The Hang Seng Index in Hong Kong closed up 103.67 points, or 0.41%, at 25,310.85 today, bucking the trend of most Asian markets which fell on a tech sell-off. Xiaomi rose 2.0%, Tencent added 1.0%, Meituan edged up 0.9%, and Horizon Robotics surged 8.9%. Investors are closely watching the US Federal Reserve's monetary policy meeting this week, with CME Group's FedWatch Tool indicating a 62% probability that the Fed will hold rates at 3.50% to 3.75% at the July 28-29 meeting, and a 38% chance of a 0.25% rate hike. In addition, the US June personal consumption expenditures price index, due on Thursday, will be a key data point shaping rate expectations for the rest of the year. Meanwhile, Shein, the online fast-fashion giant, disclosed financial information ahead of its initial public offering, reporting a net loss of 99 million US dollars in the first quarter of 2026, compared with a net profit of 395 million US dollars in the same period a year earlier, as sales slowed sharply after the US ended a duty-free exemption for small parcels. This comes as the company prepares for its investor roadshow and official IPO subscription on the Hong Kong stock exchange.

China's smart small home appliance market expanded by 62.3 percent between 2020 and 2025, reaching 228.5 billion yuan, and is expected to hit 339.3 billion yuan by 2030. Growth is driven by IoT and AI technologies, along with modern consumer behavior that prioritizes convenience. Buyers place importance on brands with interconnected device systems, such as the Mi Home ecosystem, at 38.39 percent, followed by value for money and specialized brands. This has allowed local brands like Xiaomi, Midea, and Haier to gain market share over foreign brands. In terms of exports, the United States is the top market with a value of 42.406 billion yuan, accounting for 50.9 percent of total export value to the five main markets. Guangdong province remains the country's largest production base, with over 540,000 related companies, or 19.2 percent of the national total.

The 2026 Fortune China 500 list has been unveiled. The 36 companies in the vehicles and parts sector reported combined revenue of 940.21 billion US dollars for 2025, up 2.95 percent year on year, with total net profit of 29.15 billion US dollars, a jump of nearly 40 percent. BYD led the auto industry with revenue of 111.85 billion US dollars, ranking 26th overall, up one spot from 2025, and was the only automaker in the sector to surpass 100 billion US dollars in revenue. SAIC Motor ranked second in the industry with revenue of 91.3 billion US dollars, placing 36th overall, while net profit surged 507.1 percent to 1.41 billion US dollars. Geely Group came third with revenue of 87.87 billion US dollars, ranking 39th overall, but net profit fell 207.4 percent year on year to a loss of 897 million US dollars. Xiaomi ranked fifth among auto companies with revenue of 63.62 billion US dollars, placing 58th overall, and its smart electric vehicle business revenue exceeded 100 billion yuan for the first time. Leapmotor jumped 151 spots to 272nd place, making it one of the biggest risers among auto companies.

Xiaomi has raised its 2026 smartphone delivery target from 90 million units to 110 million units, after first-half 2026 sales came in better than the company expected, reflecting strong demand in both the Chinese and overseas markets, especially in the premium smartphone segment. However, memory costs for both DRAM and NAND Flash continue to rise and are likely to pressure smartphone business margins. The company plans to manage costs by increasing the share of premium products and improving procurement efficiency to mitigate the impact. Asia Plus Securities' research team views the target increase as positive for Xiaomi's medium-term fundamental value, and recommends that trading investors capture the short-term positive catalyst while gradually accumulating on share price weakness for medium- to long-term investment.

Srisawad Capital 1969 Public Company Limited, or SCAP, is expanding its locked phone hire-purchase financing market by partnering with major player Xiaomi and investing in an unlimited, paperless automatic credit approval system, enabling dealers and stores nationwide to use it without credit officers. Acting Chief Executive Officer Ms. Duangjai Kaewbutta stated that locked phone financing is a long-term strategic plan or New S-Curve for SCAP, with the mobile phone market selling over 17 million units per year expected to increasingly rely on financing due to continuously rising chip prices. The company aims to become the leader in mobile phone hire-purchase financing in Thailand within two years, after already succeeding as the market leader in motorcycle hire-purchase financing. The automatic approval system will launch this July to enhance speed, reduce costs, and manage risk through an intelligent system under good governance and ESG principles.

Deputy Prime Minister and Interior Minister Anutin Charnvirakul presided over the opening of Thailand², a national effort to boost human capital, declaring human capital development a key government mission to enhance the potential of Thais at every stage of life, adapt to global changes, and build long-term national competitiveness. Five ministries—Higher Education, Science, Research and Innovation; Education; Labour; Agriculture and Cooperatives; and Social Development and Human Security—have integrated human resource development and reported on progress over the past 90 days. The Prime Minister said that developing people is an urgent global priority in an era of ageing societies, technological change, geopolitical volatility, and environmental challenges. Countries that keep pace with the world must have human capital that can learn and adapt quickly, which is why the government is prioritising the enhancement of Thai people's potential as a national agenda. During a visit to the People's Republic of China last week, he observed the research and development investment approaches of leading technology companies such as Huawei, Xiaomi, and Alibaba, which continuously prioritise investment in personnel and innovation. Notably, Huawei reinvests about 20% of its revenue into research and development, reflecting that countries aspiring to leadership must invest in people and knowledge alongside technology. The government will push human capital development as a core mission for all agencies, supporting lifelong learning, workforce upskilling, access to education for all ages, and mental well-being to prepare citizens to effectively navigate the changes of the modern world. Minister of Higher Education, Science, Research and Innovation Yotschanan Wongswasdi outlined the Lifelong Support action plan, reflecting a vision of comprehensive care for Thais throughout their lives. He stressed that caring for citizens must go beyond welfare—it is an investment in human infrastructure, starting from early childhood, ages 0 to 6, the most critical period. The government aims to reduce the burden on working families by overhauling early childhood centre systems, adjusting operating hours to truly align with parents' lifestyles and work schedules, and redesigning back-end systems to expedite the delivery of the 600-baht child allowance to families within 30 to 45 days. This goes hand in hand with pushing for stricter child protection laws to ensure every Thai child grows up in a safe environment. For school-age children aged 7 to 18, the government has declared war on redundancy in the education system through a policy of giving time back to teachers, boldly cancelling unnecessary projects and slashing performance indicators by 71.52%, creating a positive ripple effect across more than 30,000 schools nationwide. This allows teachers to return to their core duties of classroom teaching and student development. Alongside this, the Zero Dropout PLUS project sets an ambitious goal of bringing over 500,000 out-of-school children back into classrooms or vocational training, while building future leaders by awarding ODOS international scholarships to over 3,282 individuals to bring world-class knowledge back to develop the country. For those starting their careers and building their lives, aged 19 to 35—a phase of expanding capabilities—the government has made a historic decision to break down educational inequality by subsidising over 147.2 million baht through the TCAS system, enabling over 900,000 young people to take the TGAT/TPAT exams for free, unlocking financial burdens for hundreds of thousands of families. In terms of workforce development, proactive targets have been set to produce personnel that meet the country's structural needs, including training an additional 22,200 doctors and over 12,000 high-skilled semiconductor professionals. Furthermore, jobs have been secured for over 40,051 people, and social security benefits have been enhanced with 12 new dental treatments requiring no upfront payment. A key highlight is the collaboration with tech giant Google to provide Career Certificate scholarships to upskill over 10 million Thai workers, preparing them for the disruption of the AI era. For expanding potential among older adults and vulnerable groups aged 36 and above, Yotschanan said the focus is on elevating farmers to become full-fledged technology entrepreneurs through support for precision fertiliser use based on soil analysis, promoting safe and organic farming areas totalling over 2.62 million rai, and encouraging the use of satellite-based farm management applications. Meanwhile, the government has built a safety net for later life with the CARE old-age pension formula, adjusted kidney replacement therapy criteria to extend patients' lives and reduce waiting times, and used big data such as the Social Map system to scan areas and identify over 230,000 overlooked vulnerable individuals for access to state welfare cards. Additionally, the Digital Healthcare Platform, now with over 3.67 million users, is being expanded, a Senior Complex model city is set to launch in Bang Lamung district, and a budget is being finalised to support universal disability allowances at a rate of 1,000 baht. Beyond laying long-term foundations, Yotschanan also highlighted concrete achievements over the past 90 days under the key message that what we do, we do for real, with science and technology. The work is divided into two main parts: new initiatives with immediate visible results, such as the equitable TCAS69 policy, using AI to scan for redundancy in national research projects—saving the government over 72 million baht immediately—pushing for salary adjustments for over 67,000 university staff, and the greatest pride of delivering the Thai-made CE-7 MATCH space equipment for a lunar orbit mission. Meanwhile, ongoing work has been scaled up to create national impact, including the Traffy Fondue platform, which has transformed urban problem-solving and complaint handling, successfully resolving over 1.9 million cases; the PPAP precision poverty alleviation platform, which uses data to target assistance for over 300,000 households; the upgrading of local enterprises, generating nearly 10 billion baht annually for communities; water management projects secured by big data; and the Thai-made train project. All of this is clear proof that innovation can genuinely solve livelihood problems and improve the quality of life for Thais. Furthermore, Yotschanan unveiled a roadmap for generating new national income, announcing the launch of four new economic strategies: the Semiconductor Thailand strategy, poised for a decisive move with the ASEAN Chips Diplomacy policy to position Thailand as a regional production base; the Wellness Economy strategy, ready to inject over 12 billion baht into the medical innovation ecosystem; the Space Economy strategy through cooperation on lunar exploration missions with major powers like China and the United States; and the national AI strategy, which sets a major goal of building digital literacy for 20 million Thais, along with the launch of the TARI readiness index to assess and upgrade organisations nationwide.

Xiaomi has disclosed progress in developing humanoid robots at its automotive factory, where the success rate for self-tapping nut installation tasks rose from 90.2% to 98% within four months, approaching the work standard of human employees. In addition, the robot can now perform two new tasks: sorting center console parts and folding and recycling parts packaging boxes, both with a success rate of around 90%, reflecting advancement from laboratory testing to real-world application on the vehicle production line. The research team holds a strategically positive view on the stock's medium- to long-term value, as this could help improve production efficiency, reduce labor costs, and extend the company's automation capabilities in the future. However, the near-term impact on profits is expected to be limited, as the project remains in the testing phase and has yet to generate direct commercial revenue from the robotics business.

Asia Plus Securities research reports that four major Chinese technology and automotive companies are preparing to expand investments in Thailand worth a combined 70 billion baht this year, focusing on two future industries: AI and data center technology, where Innolight Technology and Eoptolink Technology will expand production bases for optical transceivers to support AI and cloud data center growth, and the electric vehicle industry, where Xiaomi Corporation is considering setting up an EV production base and research and development center in Thailand, while Changan Automobile is moving ahead with expanding production capacity from 100,000 to 200,000 units per year by 2030, along with establishing a regional headquarters and an EV R&D center. Stocks expected to benefit include industrial estate groups such as AMATA, WHA, ROJNA, and PIN; automotive groups such as AH, SAT, and STANLY; parts groups such as HANA, DELTA, KCE, and SMT; and energy groups such as GULF.

The Thai government has been conducting a roadshow in China, holding talks with four major companies: Changan Automobile, an electric vehicle manufacturer; Innolight Technology and Eoptolink Technology, producers of optical transceiver equipment for data centers and AI; and Xiaomi Corporation, a maker of smartphones and smart home appliances. The expected investment inflow into Thailand could reach as high as 70 billion baht. The BOI has also opened an office in Chengdu, which links the China-Laos-Thailand route, supporting the AMATA industrial estate and CP Group, which participated in the discussions. Meanwhile, WHA benefits from the data center business and the EV supply chain as production bases expand. However, it remains necessary to monitor the US Section 301 tariffs, which will impose a 12.5% levy on July 24, affecting seafood and processed food, though the impact on electronics is still unclear.

Asia Plus Securities, or ASPS, recommends investment strategies for volatile markets, focusing on Energy Hedge plays that benefit from oil prices and geopolitical risks, including PTTEP, BCP, TOP, and IVL, alongside safe-haven stocks. It highlights PTTEP, BCP, and MAGURO as top picks for Thai stocks, while for international exposure it favors BABA80 and SPENGY80. Additionally, it suggests SIRI, GULF, and GFPT as other interesting stocks. ASPS sees an opportunity to rotate investments from AI infrastructure plays to downstream users such as Apple, Meta, Alphabet, Xiaomi, and Alibaba. It also flags the AMD Advancing AI 2026 event on July 23 and the IPO of CXMT on July 27, which could drain liquidity and pressure memory chip prices. On the domestic positive side, the government has attracted over 70 billion baht in foreign direct investment from four major Chinese companies. In the EV sector, Xiaomi is setting up an R&D center and Changan is expanding production capacity to 200,000 units per year by 2030. In AI and data centers, Innolight and Eoptolink are preparing to expand factories in Thailand.

Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, disclosed that the roadshow in Chengdu led by the Prime Minister and the Minister of Interior exceeded expectations, with anticipated Chinese investment into Thailand reaching 70 billion baht. This comprises 50 billion baht for expanding existing investment bases and over 20 billion baht in new investment. A key factor is geopolitical tensions accelerating capital groups' relocation of production bases to ASEAN, with Thailand as a top target. One-on-one negotiations with four major Chinese companies in electric vehicles and advanced technology were led by Changan Automobile, which has chosen Thailand as its first right-hand-drive vehicle production base outside China and plans to expand capacity to 200,000 units per year, already bringing 40 Thai SMEs into its supply chain. Innolight Technology, a global leader in optical data transmission equipment, is set to expand its production base in Thailand, creating over 20,000 jobs and engaging in joint research with Thai universities involving more than 1,500 Thai engineers. Meanwhile, Eoptolink Technology, the world's second-largest in the same industry, has opened its first factory in Rayong and is expanding a second plant. Xiaomi Corporation, which holds the third-largest smartphone market share in Thailand, is in talks to use Thailand as a production base for smart home appliances, with the government highlighting Thailand's strengths in the smart electronics supply chain to serve regional markets and exports.

A number of home appliance disruptor brands are bringing core component production back in-house from external contract manufacturing, aiming to strengthen supply chain security and boost profit margins. Laifen, known for its hair dryers, has built injection molding, motor, and battery production lines at its Zhuhai super factory, achieving a component self-sufficiency rate of over 90 percent. Xiaomi put its Wuhan smart appliance factory into operation in October 2025, with a total investment exceeding 2.5 billion yuan, a peak annual capacity of 7 million units, and an air conditioner rolling off the line as fast as every 6.5 seconds. Ecovacs has formed three major supply chain segments: Tiding Battery, Tongfan Mold, and Kaihang Motor. Among them, Tiding New Energy has a total investment of about 1.2 billion yuan, plans an annual production capacity of 2 gigawatt-hours of lithium batteries, and has already achieved procurement cost optimization of over 20 percent. Midea Group's business-to-business revenue reached 122.8 billion yuan in 2025, up 17.5 percent year on year, and its Meizhi household air conditioner compressors rank first globally in sales volume and are also sold externally. Gree Electric's silicon carbide chip cumulative sales have surpassed 300 million units, with installations and shipments exceeding 2 million air conditioners, and it also provides external foundry tape-out services. An analyst from LeadLeo Research Institute pointed out that building an in-house supply chain requires balancing product differentiation, cost, and capital returns, and blindly pursuing self-sufficiency may drive up unit costs.