Daiwa: Raises Xiaomi Corporation-W target price to HKD 70, reiterates "Buy" rating
Daiwa released a research report stating that it has raised the target price for Xiaomi Corporation-W from HKD 65 to HKD 70, an increase of 7.7%, still based on a comprehensive price-to-earnings ratio of 38 times for 2025-26 and a price-to-sales ratio of 4.4 times for the electric vehicle business. The firm reiterated its "Buy" rating. The report indicated that Xiaomi's performance in the first quarter of 2025 was strong, with adjusted net profit exceeding market expectations by 13%. The gross profit margins (GPM) for the Internet of Things and electric vehicles were surprisingly higher than market expectations by 4 percentage points and 2 percentage points, respectively. The firm believes that the positive news from the investor day scheduled for June 3 and the listing of YU7 in July will serve as short-term catalysts. Based on the currently raised gross profit margin forecasts for electric vehicles and the Internet of Things, the firm has increased its earnings per share estimates for 2025-27 by 8-19%
According to Zhitong Finance APP, Daiwa released a research report stating that it has raised the target price for Xiaomi Corporation-W (01810) by 7.7% from HKD 65 to HKD 70, still based on a comprehensive price-to-earnings ratio of 38 times for 2025-26 and a price-to-sales ratio of 4.4 times for the electric vehicle business. The firm reiterated its "Buy" rating.
The report indicated that Xiaomi's performance in the first quarter of 2025 was strong, with adjusted net profit exceeding market expectations by 13%. The gross profit margins (GPM) for the Internet of Things and electric vehicles were surprisingly higher than market expectations by 4 percentage points and 2 percentage points, respectively. The firm believes that the positive news from the investor day scheduled for June 3 and the listing of YU7 in July will serve as short-term catalysts. Based on the currently revised gross profit margin forecasts for electric vehicles and the Internet of Things, the firm has raised its earnings per share estimates for 2025-27 by 8-19%
