Analyst Alex NG from CMB International Securities reiterated a Buy rating on Xiaomi (XIACF – Research Report) and keeping the price target at HK$65.91.
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Alex NG has given his Buy rating due to a combination of factors that highlight Xiaomi’s promising growth prospects. The company has set ambitious targets for its smartphone segment, aiming to increase market share and improve average selling prices, supported by a premiumization strategy and enhanced retail integration. This approach is expected to drive significant growth in the smartphone business.
Furthermore, Xiaomi’s smart electric vehicle (EV) segment is projected to become profitable by the second half of 2025, with substantial investments in research and development focusing on advanced technologies like autonomous driving. Additionally, the Internet of Things (IoT) business is anticipated to expand rapidly, particularly in overseas markets, contributing to overall revenue and profit growth. These strategic initiatives, along with the development of self-designed chips for various products, underpin the positive outlook for Xiaomi’s financial performance.