Alex NG, an analyst from CMB International Securities, maintained the Buy rating on Xiaomi. The associated price target was lowered to HK$55.31.
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Alex NG has given his Buy rating due to a combination of factors that highlight Xiaomi’s strong performance and strategic positioning. The company’s third-quarter revenue and adjusted net profit growth exceeded expectations, driven by robust smart electric vehicle (EV) sales and a resilient internet segment, which helped offset weaker smartphone sales. Despite challenges such as rising memory costs and EV purchase tax subsidies, Xiaomi’s management remains optimistic about navigating these headwinds, with strategic priorities focused on gaining market share in smartphones and EVs.
Furthermore, Xiaomi’s expansion into international markets and its strong ecosystem provide a solid foundation for future growth. The company is actively pursuing new retail strategies in Asia and Europe, with plans to target Latin America and Africa in the coming years. While near-term margin pressures are anticipated, Xiaomi’s efforts in premiumization and reducing smartphone revenue exposure are expected to mitigate the impact. The new target price reflects a positive outlook, supported by upcoming product launches and capacity expansions in the EV segment.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a HK$51.00 price target.