Citigroup: Downgrades Xiaomi Corporation-W target price to HKD 73, rating "Buy"
Citi released a research report stating that based on the latest operational guidance, it has lowered its revenue and adjusted net profit forecasts for Xiaomi Corporation-W in 2025 by 0.8% and 4.1%, respectively, while largely maintaining its forecasts for 2026 and 2027. The current forecast indicates that adjusted net profit will grow by 67%, 34%, and 27% year-on-year from 2025 to 2027. The smartphone shipment forecasts for 2025 to 2027 have been raised to 177 million, 185 million, and 193 million units, with the target price slightly decreased from HKD 73.5 to HKD 73, maintaining a "Buy" rating. Citi noted that Xiaomi recently held an investor day, where management announced that the revenue and adjusted net profit guidance for 2025 is expected to grow by over 30% and over 40%, compared to market forecasts of 33% and 54%, respectively. They also expect smartphone shipments to reach 175 million to 180 million units, with an average product price increase of 3% to 5%, compared to their forecast of a 7% increase. IoT business revenue is expected to grow by over 30%. The company also revealed that Xiaomi's automotive, AI, and new businesses may turn profitable in the second half of the year
According to the Zhitong Finance APP, Citigroup released a research report stating that based on the latest operational guidance, it has lowered the revenue and adjusted net profit forecasts for Xiaomi Corporation-W (01810) for 2025 by 0.8% and 4.1%, respectively, while largely maintaining the forecasts for 2026 and 2027. The current forecast indicates that the adjusted net profit will grow by 67%, 34%, and 27% year-on-year from 2025 to 2027; the smartphone shipment forecasts for 2025 to 2027 have been raised to 177 million, 185 million, and 193 million units, with the target price slightly decreased from HKD 73.5 to HKD 73, maintaining a "Buy" rating.
Citigroup pointed out that Xiaomi recently held an investor day, where the management announced that the revenue and adjusted net profit guidance for 2025 is expected to grow by over 30% and over 40%, compared to market forecasts of 33% and 54%, respectively. They also expect smartphone shipments to reach 175 million to 180 million units, with an average product price increase of 3% to 5%, compared to the bank's forecast of a 7% increase. The IoT business revenue is expected to grow by over 30%. The company also revealed that Xiaomi's automotive, AI, and new businesses may turn profitable in the second half of the year
