0225 GMT - Xiaomi's car and AI business may have faced some sequential pressure in 3Q, according to Deutsche Bank's Bin Wang. DB estimates revenue from its smart EV, AI and other new initiatives segment to have declined 4% on quarter to 23.8 billion yuan, given flat vehicle deliveries in 3Q. On the cost side, Xiaomi has guided for 2026 corporate research and development expenses of 40 billion yuan, which includes a heavy 16 billion yuan allocation to the smart EV and AI segment. Auto research and development expenses may have dragged Xiaomi's 3Q adjusted net profit on a quarterly basis, Wang says in a research note. DB keeps a buy rating on the stock, with a target price of HK$48.00. Shares last traded at HK$28.74.
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