CMB International Securities analyst Alex NG has reiterated their bullish stance on XIACF stock, giving a Buy rating on February 20.
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Alex NG has given his Buy rating due to a combination of factors including Xiaomi’s anticipated robust performance in the fourth quarter of 2024, where revenue and adjusted net profit are expected to surpass consensus estimates. The growth is driven by a favorable product mix in their smartphone segment, bolstered by government subsidies and an improved gross profit margin in their electric vehicle (EV) business.
Looking forward to the fiscal year 2025, NG remains optimistic about Xiaomi’s potential in gaining global market share, particularly in its high-end smartphone models and expansion across Latin America, EMEA, and Southeast Asia. Moreover, the Internet of Things (IoT) business is set to benefit from national subsidies and global expansion. The EV segment is also expected to perform well with a strong backlog and new model launches. Consequently, NG has raised earnings per share estimates and maintains a positive outlook on Xiaomi’s core business and growth momentum, leading to an increased target price.
In another report released on February 20, Goldman Sachs also maintained a Buy rating on the stock with a HK$58.00 price target.
XIACF’s price has also changed dramatically for the past six months – from $2.279 to $6.530, which is a 186.53% increase.