Daiwa Lifts Xiaomi-W Price Target to HK$35 on Expectations of Smartphone Segment Improvement

Stock News11-03 10:38

Daiwa has released a research report stating that XIAOMI-W (01810) is expected to see margin improvement driven by smartphone premiumization, and has slightly raised its earnings per share forecasts for 2027 to 2028 by 1%. The brokerage reaffirmed its "Buy" rating and lifted its price target from HK$30 to HK$35.

The report noted that XIAOMI-W has successfully passed on costs through average selling price increases, and with new handset models supporting demand, smartphone revenue performance is expected to be stronger. Daiwa now forecasts third-quarter revenue of RMB 106 billion and adjusted net profit of RMB 5.1 billion.

On the electric vehicle front, XIAOMI-W delivered 101,000 units in the third quarter, exceeding the brokerage's earlier forecast of 95,000 units. Daiwa now projects third-quarter EV sales of RMB 23 billion.

In the AIoT segment, the brokerage has lowered its third-quarter revenue forecast to RMB 27 billion.

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