中金:维持小米集团-W(01810)“跑赢行业”评级 目标价升至23港元

CICC: Maintaining the Xiaomi Group-W (01810) “outperforming the industry” rating, and raising the target price to HK$23

Zhitong Finance ·  May 8 15:21

CICC raised the adjusted net profit forecast for the Xiaomi Group-W (01810) 2024 and 2025 fiscal years to 16.512 billion yuan and 17.498 billion yuan.

The Zhitong Finance App learned that CICC released a research report stating that it maintained the Xiaomi Group-W (01810) “outperforming the industry” rating and raised the Group's adjusted net profit forecast by 9% and 33.7% for the 2024 and 2025 fiscal years to RMB 16.512 billion and RMB 17.498 billion, respectively. Based on confidence in the long-term growth of the company's automotive business, the target price increased by 27.8% to HK$23.

The bank expects the adjusted net profit of the Xiaomi Group to increase 70.7% year-on-year to RMB 5,521 billion in the first quarter. According to industry data, the Group's global smartphone shipments increased 33% year on year to 40.7 million units in the first quarter, and its market share increased 3 percentage points to 14% year on year, ranking third in the world. The bank believes that the strong growth in the company's shipments was due to the low base formed by the inventory removal cycle during the period, and benefited from the company's outstanding performance in emerging markets such as Africa, Latin America, and the Middle East.

Furthermore, in terms of average prices, considering that the first quarter was a low season for new phone releases, the bank expects the average price of mobile phones to remain basically stable year over year. Based on shipment volume and average price, the company's mobile phone business revenue is expected to increase by 30.3% year-on-year to 45.6 billion yuan in the first quarter. In terms of gross margin, considering rising prices of components such as storage, gross margin is expected to increase by 3.3 percentage points to 14.5% year-on-year. The bank expects the company's IoT business revenue to increase 21% year-on-year to RMB 20.369 billion in the first quarter, and gross margin to increase 3.3 percentage points to 19% year-on-year. In terms of online business, considering the growing trend in mobile phone shipments, the bank expects revenue to increase 10% year on year to 7.731 billion yuan during the period, and gross margin increase 2.7 percentage points to 75% year on year.

The translation is provided by third-party software.

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