Lowered $XIAOMI-W(01810.HK)$ Group rating to "Hold" from "Buy"
HSBC Research issued a report lowering $小米集团-W(01810)$ Xiaomi Group's net profit forecast for 2022 to 2023 by 4% to 8% to reflect slower growth in Internet services and higher operating costs in its auto business. The report underestimated the increased competition in the smartphone market and stricter regulation of the Internet amid a weakening macro economy. Xiaomi shares have adjusted 13% year-to-date as investment sentiment has turned sour faster than previously expected. The bank cut its forecast for Xiaomi's smartphone shipments to 212 million units from 222 million in 2022 and expects flat YoY growth in shipments in China, with the main incremental volume coming from overseas. The bank believes that operating costs could rise si