Investment bank Goldman Sachs has released a research report maintaining a "Buy" rating on Xiaomi-W (01810) with a target price of HK$40. The firm's positive outlook is driven by the recent unveiling of Xiaomi's new technology platform and its first range-extender electric vehicle series.
Xiaomi launched its new "Xiaomi Kunlun Technology Architecture" alongside its inaugural extended-range EV series, "Pengcheng," which includes two new models: the five-seat N70 Max and the seven-seat N90 Max. A key highlight of the Kunlun architecture is its flat, rectangular cabin floor design, which spans 4.4 square meters. This spacious layout is exceptionally rare among SUVs in its class, enabling highly flexible and diverse usage scenarios.
Pricing for the new vehicles has come in below market expectations. The N70 Max has a pre-sale price of 259,900 yuan, notably lower than the anticipated 300,000 yuan. The N90 Max is priced at 299,900 yuan, also undercutting the consensus estimate of between 350,000 and 400,000 yuan.
Goldman Sachs anticipates that Xiaomi's EV deliveries will regain growth momentum in the second half of the year following the launch of these new models. This is expected to support the group's gross margin and valuation. Key upcoming factors to monitor include the pre-order status and the company's impending second-quarter earnings report, scheduled for release on August 18th.
Comments