Morgan Stanley's research report suggests that if memory prices start to correct in the next few quarters, the bank believes that Xiaomi Group is likely to be a major beneficiary, as its smart phone profit margin is less likely to face downward pressure and is more likely to enjoy potential recovery. Memory is a key component of smart phones. The increase in memory costs is a major reason for the decline in Xiaomi's smart phone gross margin from 16.6% in the third quarter of 2023 to 12.1% in the second quarter of this year. Morgan Stanley believes that a turning point may come and predicts that the price of DRAM will rise and stabilize in the fourth quarter of 2024. The bank maintains its target price of HKD 26 and a "buy" rating.