Xiaomi (HKG: 1810) stock price soared nearly 6% to trade at a 2-year high near the 20.00 handle. The producer of smartphones topped market expectations for the second quarter.

Xiaomi posted revenue of $7.77 billion in the second quarter, which is 3.1% higher than a year ago. This is also 7.7% higher compared to the previous quarter, as the company started recuperating in most international markets amid the pandemic.

The Beijing-based giant reported a profit of $650 million, which is nearly 130% higher than in the year-ago period and up 108% compared to the previous quarter. It also announced the appointment of a new Chief Financial Officer this week, Alain Lam. 

The company’s smartphone sales were increased in most of the overseas markets, except India. Xiaomi said the average daily number of smart activations abroad recorded 120% of the pre-coronavirus level registered in January this year.

In India, Xiaomi’s second-largest market, the situation is different because the government imposed a nationwide lockdown in March that led to the closing of Xiaomi’s shops. The online delivery of non-essential products was also halted during that period.  

After India eased lockdown measures, the number of Xiaomi smartphone activations on a daily basis managed to reach only 72% of the January 2020 figure, the company said. Xiaomi has been the top smartphone seller in India over the past 12 quarters. 

Weaker results in India are a result of local production yields, said Xiaomi. 

“As the production capacity had not yet returned to the normal level, our sales were still limited by the production constraints,” it said.

On the other hand, Xiaomi performed really well in Europe. The smartphone shipments jumped nearly 65% compared to the year-ago period, attaining 16.8% of the total market share, according to the data provided by the research company Canalys. 

Xiaomi stock price soared almost 6% to hit a fresh two-year high of 19.18. The buyers have now come close to a major target in the short-term, which is the 161.8% Fibonacci extension line that sits at 19.40. 

Moreover, Xiaomi share price is trading around 30% higher in August, its best month since the tech giant went public. The ultimate target for the buyers are levels above 22.00, where the all-time high is located. 

Xiaomi’s revenue reports are 3.1% in the green for the second quarter, in spite of limited production in India. As a result, shares of Xiaomi hit the 2-year high today. 

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