BYD, MiMedia Holdings, Xiaomi – Interesting entry opportunities

BYD – Correction as expected

As we mentioned last week, there was a risk of a correction in BYD's share price after forming a double top. Since then, the Chinese market leader in electric vehicles has lost around 6% of its share price to USD 51.82. The next short-term target would be to close the upside gap from March 13 at USD 47.35. If the stock slips further, the upward trend established since January 2025 at the current level of USD 40.36 serves as a support level.

Despite the price correction due to the general market weakness, BYD continues to be on an upward trajectory and is underpinning its expansion plans into Europe with a new distribution partnership in Italy. As reported by Reuters at the end of last week, the Build Your Dream company has entered into a joint venture with the Italian company Intergea. As part of the sales partnership, original BYD spare parts will be available across Italy through Intergea subsidiary CRF within 48 hours starting in May.

BYD is already moving forward with the construction of two plants on the old continent and is exploring the possibility of building a third production facility, with Germany being considered a potential location.

An important aspect of this new partnership is the improvement in the availability of spare parts. BYD hopes that easier accessibility will encourage more European consumers to consider buying a BYD model. The partnership with Intergea is seen as a crucial step in overcoming the widespread prejudice that sourcing spare parts for Asian vehicles is difficult. This problem is often seen as a significant barrier to purchasing such vehicles.

MiMedia Holdings with a Mega Partnership

Artificial intelligence reached the mainstream at the latest with the launch of the Chat GPT chatbot in November 2022, sparking an unprecedented level of stock market hype surrounding shares in the industry. Many AI stocks multiplied within months. Currently, a consolidation phase is taking place, but undiscovered AI companies, such as MiMedia Holdings, valued at CAD 28.22 million, are entering the market. With the potential to become a multiplier in the next upward wave, MiMedia is one to watch.

MiMedia Holdings offers consumers an independent, AI-based cloud platform that allows them to back up all types of personal media to the cloud and access it seamlessly across all devices and operating systems at any time. The Company has already entered into strategic partnerships with some of the world's largest telecommunications companies and device manufacturers. Last week, CEO Chris Giordano and his team reached a major milestone by signing a cooperation agreement with Fortune 500 company Walmart and its largest subsidiary in Latin America.

What few people know is that Walmart Latin America, through its subsidiary Bait, has become the third largest provider of telecommunications services in Mexico with 18.3 million subscribers. As part of this partnership, MiMedia will be integrated into millions of new smartphones distributed by Bait and sold to consumers in Mexico. In addition, the mobile app will also be distributed to the already 18.3 million Android smartphones. The partnership also integrates the fact that MiMedia is working with and integrating with Walmart's digital ecosystem, which provides apps for all of Latin America.

While the joint venture represents a milestone for MiMedia, the share price has benefited little. Nevertheless, since the beginning of the year, the share price has risen by around 90% to EUR 0.31.

Xiaomi – Highly competitive market

The Chinese market for electric vehicles, by far the largest in the world, is highly competitive. In addition to big names such as BYD and Tesla, more and more smaller suppliers are trying to take market share from the top dogs. The technology company Xiaomi, once known as a smartphone manufacturer, plans to expand its electric vehicle business with a massive cash injection. Xiaomi aims to collect around USD 5.5 billion to accelerate the development of new models, software, and fast-charging technologies.

Another announcement could unsettle privately owned electric vehicle manufacturers. According to the news service Bloomberg, the merger of state-owned EV producers Dongfeng Motor and Guangzhou Auto could create a mega-company with a combined capitalization of USD 17 billion.

While both companies were able to gain ground on the Hong Kong stock exchange, Xiaomi lost more than 4%, dropping to the equivalent of EUR 5.77. Similar to BYD, there is no clear end to the consolidation in sight. The 100-day EMA provides slight support at around EUR 5.00.

After rising to new highs, the stock markets corrected in the first quarter. Both BYD and Xiaomi still have downside potential. MiMedia Holdings reached a milestone by announcing a partnership with Walmart.