0834 GMT - Investors may be too optimistic on Xiaomi's electric-vehicle business, to which Morningstar analysts don't assign a moat, they write in a note. Xiaomi's shares are overvalued, with the current P/E ratio of around 40 times well above the low-double-digit historical range, they say. The company aims to expand its EV sales from the domestic market to overseas markets by 2027, they say. The second phase of Xiaomi's EV plant is under construction and may be completed by mid-June this year, they add. Xiaomi would need to increase its production rate from around 25,000 units per month in 1Q to at least 30,000 units per month to hit its unchanged annual target of 350,000 units for 2025, they say. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

May 29, 2025 04:34 ET (08:34 GMT)

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