CMB International: Raises target price for Xiaomi Corporation-W to HKD 62, maintains "Buy" rating

Zhitong
2025.05.30 06:16
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CMB International raised the target price for Xiaomi Corporation-W to HKD 62, maintaining a "Buy" rating. Xiaomi's revenue and adjusted net profit for the first quarter were RMB 111.3 billion and RMB 10.7 billion, respectively, exceeding expectations. Revenue is expected to reach RMB 503 billion and RMB 615.9 billion in 2025/2026, with adjusted earnings per share revised to RMB 1.87 and RMB 2.14. The AIoT business continues to grow rapidly, and the automotive gross margin has increased to 23.2%

According to Zhitong Finance APP, Jiangyin International released a research report stating that Xiaomi Corporation-W (01810) exceeded expectations in its first-quarter performance, with continuous high growth in AIoT business and an increase in automotive gross margin. Based on a 26 times price-to-earnings ratio for the mobile × AIoT business in 2026 and a 2 times price-to-sales ratio for the automotive business, and considering exchange rate factors, the target price for Xiaomi has been raised to HKD 62, maintaining a "Buy" rating.

The report indicated that Xiaomi's first-quarter revenue and adjusted net profit were RMB 111.3 billion and RMB 10.7 billion, respectively, surpassing market and the bank's expectations. The bank raised its revenue forecasts for 2025/2026 to RMB 503 billion and RMB 615.9 billion, and adjusted its earnings per share forecasts for 2025/2026 to RMB 1.87 and RMB 2.14 (previously forecasted at RMB 1.51 and RMB 1.98). At the same time, the bank lowered its average selling price forecast for Xiaomi's automotive business in 2026 to RMB 254,000 (previously forecasted at RMB 270,000).

Jiangyin International pointed out that Xiaomi benefited from strong growth in categories such as large home appliances, wearable devices, and tablets, with AIoT revenue increasing by 59% year-on-year to RMB 32.3 billion, and gross margin rising from 20.5% in the fourth quarter of last year to 25.2%. The automotive gross margin further increased to 23.2%, mainly due to the scale effects brought by the SU7, higher management efficiency and channel efficiency, product mix optimization, and growth in equity income

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