Understanding the Market | Xiaomi Corporation-W rose over 3% in the morning, with Credit Suisse expecting its first-quarter performance to exceed expectations, and AIoT bringing more profit upside potential
Xiaomi Corporation-W's stock price rose more than 3% in the morning, reaching HKD 51.7, with a transaction volume of HKD 4.648 billion. Jefferies expects Xiaomi's first-quarter performance to exceed expectations, mainly benefiting from the AIoT business. It is anticipated that the sales of the electric vehicle SU7 will increase by 9% quarter-on-quarter to approximately 74,000 units. CMB International pointed out Xiaomi's core position in the technology industry, believing that the AIoT and electric vehicle businesses will drive profit growth, and set a target price of HKD 60
According to Zhitong Finance APP, Xiaomi Corporation-W (01810) rose over 3% in the morning, and as of the time of writing, it increased by 3.19% to HKD 51.7, with a transaction volume of HKD 4.648 billion.
In terms of news, Xiaomi Corporation will release its first-quarter results on May 27. Jefferies expects Xiaomi's first-quarter performance to exceed expectations, mainly benefiting from its Artificial Intelligence of Things (AIoT) business. The report indicates that it is expected that in the first quarter of this year, the sales of Xiaomi's electric vehicle SU7 will increase by 9% quarter-on-quarter to approximately 74,000 units, with the average selling price remaining stable. The firm also noted that while the market mainly focuses on Xiaomi's electric vehicle business, it believes that the group's IoT (AIoT) is another undervalued business that has the potential to bring positive surprises to short-term profits; Xiaomi's advantages in design, cost, and performance, as well as its online and offline marketing knowledge, are expected to drive rapid market share growth.
China Merchants Bank International released a research report stating that Xiaomi, as a core target in China's technology industry and a pioneer in independent innovation and domestic substitution, has a relatively small direct exposure to trade uncertainties; the high-endization of smartphones and the continued expansion of emerging markets, along with the positive impact of declining memory costs on gross margins, may be concentrated in the first half of 2025; the production capacity of smart vehicles continues to be released, which may turn profitable by 2025; and AIoT is expanding into major appliances, increasing offline and overseas channels. The firm pointed out that investors may have differing views on Xiaomi's valuation methods. Using the SOTP method, based on a 26 times price-to-earnings ratio for the mobile x AIoT business in 2026 and a 2.0 times price-to-sales ratio for the automotive business, it arrived at a target price of HKD 60
