By Jiahui Huang
Xiaomi is scheduled to report results for the fourth quarter and full year on Tuesday after the market close. Here is what you need to know:
NET PROFIT FORECAST: Full-year net profit is expected at 16.07 billion yuan ($2.23 billion), according to the median estimate in a poll of 21 analysts by FactSet. That would be a more than sixfold increase from CNY2.47 billion in 2022, which was hurt by lower smartphone sales due to the pandemic. Fourth-quarter net profit was likely CNY3.32 billion, according to FactSet, up from CNY3.15 billion a year earlier.
REVENUE FORECAST: Quarterly revenue is projected to have risen 10% to CNY72.87 billion, according to FactSet.
Xiaomi shares rose 26% in the fourth quarter and were recently 0.5% higher on Tuesday, taking year-to-date losses to 3.7%.
WHAT TO WATCH:
--EV: Investors will want to know the initial consumer feedback on Xiaomi's first electric vehicle, the SU7 sedan, which is set to launch next week. Citi analysts said in a recent research note that the car's delivery schedule will likely be ahead of market expectations.
--SMARTPHONE SALES: Data from market research firm Canalys showed that the Chinese smartphone maker shipped 41 million units globally in the fourth quarter, up 23% from a year earlier and slightly above Citi's projection of 40.2 million units. Investors will be watching the latest shipment volume numbers for the domestic and overseas markets, considering rival Apple recorded a 24% decline in iPhone sales in China in the first six weeks of 2024, Huatai Futures analyst Leping Huang said.
--MARGIN: Investors will examine whether the consumer-electronics maker maintained strong margins in the fourth quarter after its overall gross profit margin reached a record high of 22.7% in the third quarter.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
March 18, 2024 23:22 ET (03:22 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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