Daiwa Capital Markets: Raises the target price for Xiaomi Corporation-W to HKD 66, with adjusted earnings expected to reach a new high in the first quarter
Daiwa Capital Markets released a research report stating that it expects Xiaomi Corporation-W to achieve strong revenue growth and significant gross margin expansion across all segments in the first quarter of this year, primarily supported by robust delivery growth and an improved product mix. With effective control of operating expenses, the quarterly adjusted net profit is expected to increase by 43% year-on-year to RMB 9.3 billion (the same below), setting a historical high. The firm maintains a "Buy" rating and raises the target price from HKD 63.9 to HKD 66. The firm anticipates that the company's revenue in the first quarter will increase by 44.1% year-on-year to RMB 108.8 billion, with gross margin expanding by 0.7 percentage points to 21.3%. The firm has raised its earnings forecasts for the company for 2025 to 2027 by 5.8%, 3.8%, and 3.5%, to RMB 36.4 billion, RMB 44.3 billion, and RMB 51.2 billion, respectively
According to Zhitong Finance APP, Daiwa Capital Markets has released a research report stating that it expects Xiaomi Corporation-W (01810) to achieve strong revenue growth and significant gross margin expansion across all segments in the first quarter of this year, primarily supported by robust delivery growth and an improved product mix. With effective control of operating expenses, it is estimated that the company's adjusted net profit for the quarter will increase by 43% year-on-year to RMB 9.3 billion (the same below), setting a historical high. The firm maintains a "Buy" rating and raises the target price from HKD 63.9 to HKD 66.
The firm expects the company's revenue in the first quarter to increase by 44.1% year-on-year to RMB 108.8 billion, with gross margin expanding by 0.7 percentage points to 21.3%. The firm has raised its earnings forecasts for the company for 2025 to 2027 by 5.8%, 3.8%, and 3.5%, to RMB 36.4 billion, RMB 44.3 billion, and RMB 51.2 billion, respectively
