Morgan Stanley: Expects Xiaomi Corporation-W's smartphone revenue to grow only 5% this year, rating "Neutral"

Zhitong
2025.08.13 08:57
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JP Morgan released a research report stating that Xiaomi Corporation-W has underperformed the market in the past month, with a cumulative decline of 10% in its stock price, compared to a cumulative increase of about 1.5% in the Hang Seng Index during the same period. This is believed to be due to market concerns over the slowdown in profitability of core businesses such as smartphones and the Internet of Things in the second half of the year, aligning with Morgan Stanley's view when it downgraded its investment rating to "Neutral" in March this year. Morgan Stanley maintains a "Neutral" rating on Xiaomi with a target price of HKD 60. Morgan Stanley currently predicts that Xiaomi's smartphone revenue will grow only 5% in 2025, while revenue from the Internet of Things is expected to grow by 36%, with a noticeable slowdown in growth rates in the second half of the year. Electric vehicle deliveries have remained at about 30,000 units per month since March 2025, and demand for the new model YU7 remains strong. Considering that the market has begun to lower Xiaomi's core profit forecasts for the second half of 2025 and 2026, Morgan Stanley has placed the company on a positive catalyst watch list, expecting electric vehicle delivery data to rebound in the coming months, with an anticipated increase to 40,000 units per month in the fourth quarter of this year, which could drive the stock price up by 15% to 20% in the next 3 to 4 months

According to the Zhitong Finance APP, JP Morgan released a research report stating that Xiaomi Corporation-W (01810) has underperformed the market in the past month, with a cumulative decline of 10% in its stock price, compared to a cumulative increase of about 1.5% in the Hang Seng Index during the same period. This is believed to be due to market concerns over the slowdown in profits from core businesses such as smartphones and the Internet of Things in the second half of the year, aligning with JP Morgan's view when it downgraded its investment rating to "Neutral" in March this year. JP Morgan maintains a "Neutral" rating on Xiaomi with a target price of HKD 60.

JP Morgan currently predicts that Xiaomi's smartphone revenue will only grow by 5% in 2025, while revenue from the Internet of Things is expected to grow by 36%, with a noticeable slowdown in growth rates in the second half of the year. Electric vehicle deliveries have remained at about 30,000 units per month since March 2025, and demand for the new model YU7 remains strong. Considering that the market has begun to lower Xiaomi's core profit forecasts for the second half of 2025 and 2026, JP Morgan has placed the company on a positive catalyst watch list, expecting electric vehicle delivery data to rebound in the coming months, with an anticipated increase to 40,000 units delivered per month in the fourth quarter of this year, which could drive the stock price up by 15% to 20% in the next 3 to 4 months

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