CICC: Lowers Xiaomi Corporation-W target price to HKD 70, expects next quarter's Xiaomi SU7 delivery volume to reach 81,000

Zhitong
2025.08.08 03:30
portai
I'm PortAI, I can summarize articles.

CICC released a research report stating that considering the downward shift in industry valuation, it has lowered the target price for Xiaomi Corporation-W by 9% to HKD 70, corresponding to adjusted net profit price-to-earnings ratios of 34.4 times and 25.1 times for this year and next year, respectively, still leaving a 29.6% upside potential. The firm maintains an "outperform the industry" rating. It is expected that Xiaomi's revenue in the second quarter of this year will increase by 32.71% year-on-year to RMB 117.967 billion, with adjusted net profit expected to rise by 64.84% year-on-year to RMB 10.179 billion. In terms of mobile phone business, considering the intense competition in the low-price market, Xiaomi's ASP for the quarter is expected to slightly decline year-on-year, with mobile phone revenue decreasing by 1.6% year-on-year to RMB 45.792 billion, and gross margin also decreasing by 0.6 percentage points year-on-year to 11.5%. The Internet of Things (IoT) revenue in the second quarter is expected to grow by 36% year-on-year to RMB 36.394 billion, with gross margin increasing by 3.3 percentage points year-on-year to 23%. The revenue from the internet services segment is expected to increase by 11% year-on-year to RMB 9.175 billion in the second quarter, with gross margin decreasing by 2.3 percentage points year-on-year to 76%, maintaining an overall healthy level. Additionally, the firm also expects Xiaomi's SU7 second-quarter delivery volume to be 81,000 units, corresponding to revenue of RMB 25.92 billion. The gross margin is expected to increase by 1 percentage point quarter-on-quarter to 24.2%

According to the Zhitong Finance APP, China International Capital Corporation (CICC) released a research report stating that considering the downward shift in industry valuation, it has lowered the target price for Xiaomi Corporation-W (01810) by 9% to HKD 70, corresponding to adjusted price-to-earnings ratios of 34.4 times and 25.1 times for the next two years, still indicating an upside potential of 29.6%. The rating is maintained at "Outperform the Industry."

The firm expects Xiaomi's revenue in the second quarter of this year to increase by 32.71% year-on-year to RMB 117.967 billion, with adjusted net profit expected to rise by 64.84% year-on-year to RMB 10.179 billion. In terms of mobile phone business, considering the intense competition in the low-price market, the quarterly average selling price (ASP) of Xiaomi has slightly decreased year-on-year, with mobile phone revenue declining by 1.6% year-on-year to RMB 45.792 billion, and gross margin also dropping by 0.6 percentage points year-on-year to 11.5%.

Revenue from the Internet of Things (IoT) is expected to grow by 36% year-on-year to RMB 36.394 billion in the second quarter, with gross margin increasing by 3.3 percentage points year-on-year to 23%. Revenue from the internet services segment is expected to increase by 11% year-on-year to RMB 9.175 billion in the second quarter, with gross margin decreasing by 2.3 percentage points year-on-year to 76%, maintaining an overall healthy level. Additionally, the firm also expects the delivery volume of Xiaomi SU7 in the second quarter to be 81,000 units, corresponding to revenue of RMB 25.92 billion. The gross margin is expected to increase by 1 percentage point quarter-on-quarter to 24.2%

Source: Zhitong The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.