Investor Interest in Xiaomi Likely to Remain Muted -- Market Talk

Dow Jones05-06

0741 GMT - Investor interest in Xiaomi is likely to remain muted until clearer evidence emerges of memory pricing peaking or stabilizing, say Bernstein analysts in a note. The company faces weaker Internet-of-Things revenue growth due to tapering subsidies, they say. Xiaomi's 1Q deliveries also fell short of guidance on the back of production switchover to the new SU7 model and softer YU7 sales momentum, they say. That said, gross margins are proving more resilient than expected. Its 1Q smartphone gross margin is estimated between 9.5% and 10%, up from 8.3% in 4Q, despite higher memory costs, supported by product mix optimization, they add. Bernstein cuts the target price to HK$43.00 from HK$46.00 but keeps an outperform rating. Shares last at HK$30.72(jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

May 06, 2026 03:41 ET (07:41 GMT)

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