BUZZ-China's Xiaomi slips after quarterly results; Citi says gross margin misses estimate

Reuters11-19 12:33
BUZZ-China's Xiaomi slips after quarterly results; Citi says gross margin misses estimate

** Shares of China's Xiaomi 1810.HK slip 4% to HK$27.65, their biggest one-day pct decline since Oct 8

** Stock on track to snap two consecutive session of gains, and is top pct loser in Hang Seng Index .HSI, Hang Seng Tech Index .HSTECH and Hang Seng China Enterprises Index .HSCE, which are up 0.3%, 0.8% and 0.2%, respectively

** Xiaomi said on Monday it aimed to deliver 130,000 electric vehicles this year, raising its forecast for the third time as the automaker upstart posted a 30.5% jump in third-quarter revenue

** Xiaomi's auto business is still operating at a loss for the quarter while it maintained its position as the world's third-largest smartphone maker with shipments of 42.8 million units

** Citi says Xiaomi's revenue came in slightly ahead, but gross margin was below Citi's estimate

** Citi maintains "buy" and lifts target price to HK$34.9 from HK$30.6 with near-term catalysts include EV 130,000 delivery and uptick in SU7 Ultra order growth

** UOB Kay Hian keeps "buy" rating and raises Xiaomi's target price to HK$33.50 from HK$31.70 on higher sales and margins assumptions for the EV business

** Stock up 79.2%, YTD

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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