Macquarie: Raises target price for Xiaomi Corporation-W to HKD 69.32, reiterates "Outperform" rating
Macquarie released a research report stating that it has raised its non-International Financial Reporting Standards net profit forecasts for Xiaomi Corporation-W for 2025, 2026, and 2027 by 6%, 1%, and 3% respectively, with a target price increase of 1.4% to HKD 69.32, reiterating an "Outperform" rating. Xiaomi's gross margin in the first quarter of this year exceeded expectations, mainly driven by the Internet of Things products, electric vehicles, and internet services. Among them, IoT revenue grew by 59% year-on-year, with gross margin continuing to expand; the gross margin for electric vehicles increased by 2.8 percentage points quarter-on-quarter to 23.2%, and operating losses narrowed by 50% quarter-on-quarter to approximately RMB 500 million. However, the firm believes that Xiaomi's smartphone business performance in the Indian market is poor, with sales declining by about 38% year-on-year and market share dropping by 4.4 percentage points year-on-year. Macquarie expects the growth momentum of Xiaomi's IoT business to continue, and losses in electric vehicles to further narrow due to economies of scale
According to Zhitong Finance APP, Macquarie has released a research report stating that it has raised the forecast for Xiaomi Corporation-W (01810) non-International Financial Reporting Standards net profit for 2025 to 2027 by 6%, 1%, and 3% respectively, and increased the target price by 1.4% to HKD 69.32, reiterating the "Outperform" rating.
Xiaomi's gross margin in the first quarter of this year exceeded expectations, mainly driven by the Internet of Things products, electric vehicles, and internet services. Among them, IoT revenue grew by 59% year-on-year, with gross margin continuing to expand; the gross margin for electric vehicles increased by 2.8 percentage points quarter-on-quarter to 23.2%, and operating losses narrowed by 50% quarter-on-quarter to approximately RMB 500 million. However, the firm believes that Xiaomi's smartphone business performed poorly in the Indian market, with sales declining by about 38% year-on-year and market share dropping by 4.4 percentage points year-on-year. Macquarie expects that the growth momentum of Xiaomi's IoT business will continue, and losses in electric vehicles will further narrow due to economies of scale
