Understanding the Market | Xiaomi Corporation-W is currently down over 4%. Nomura states that the market has high expectations for the automotive business, while Credit Suisse indicates that the mobile phone business may drag down second-quarter performance

According to Zhitong Finance APP, Xiaomi Corporation-W (01810) is currently down over 4%, with a decline of 4.44% as of the time of publication, trading at HKD 51.6, with a transaction volume of HKD 7.465 billion.

In terms of news, in July, Xiaomi's vehicle deliveries exceeded 30,000 units, with the increase in deliveries benefiting from enhanced production capacity. Guosen Securities stated that the second phase of Xiaomi's automobile factory in Beijing is about to be put into production, and new production capacity is being planned. It is expected that Xiaomi's vehicle sales will reach 400,000 to 500,000 units in 2025, and sales are expected to exceed 800,000 units in 2026. Notably, according to Sina Technology, Xiaomi's automobiles have been reported to require users to pay the remaining balance in advance, or production will be suspended, with no official comment provided.

Nomura released a research report stating that based on SOTP valuation, it raised the target price for Xiaomi Corporation by 79% to HKD 61, but due to the limited implied upside, it downgraded its rating from "Buy" to "Neutral." Nomura expects the group to face some resistance in the coming quarters, including: smartphone shipments falling below market expectations, the IoT sales base remaining high since the second half of 2024, and although the electric vehicle business remains strong, market expectations are high. Jefferies also stated that its average selling price tracking data in China shows that the average selling price growth of Xiaomi's flagship smartphone models in the second quarter has significantly slowed compared to the first quarter; weak smartphone demand and high inventory may put pressure on the company's performance in the second quarter