The Zhitong Finance App learned that CCB International released a research report stating that it maintained the Xiaomi Group-W (01810) “outperforming the market” rating, raised the adjusted profit forecast for the 2024-2026 fiscal year by 29%-39%, and raised the target price by 12.2% to HK$23 from HK$20.5. The bank expects Xiaomi's 2024 and 2025 SU7 deliveries to be 110,000 and 119,000.

The bank pointed out that the first quarter of 2024 was a good start to Xiaomi's recovery, and the performance exceeded institutional expectations. Revenue increased 27% year over year to 75.5 billion yuan, gross margin expanded 2.8 percentage points to 22.3%, adjusted operating profit was 4.67 billion yuan, and operating margin was 6.2%. Adjusted net profit rose 101% year over year to 6.5 billion yuan, 27% higher than market consensus.

By business, Xiaomi smartphones performed well, with revenue up 33% year-on-year in the first quarter, mainly due to increased shipments and a flat average sales unit price (ASP). The smartphone's gross margin reached 14.8%, mainly benefiting from better product portfolio changes. IoT sales increased 21% year over year but remained flat from quarter to quarter, benefiting from increased sales of laptops, tablets, and wearables. As of April 30, orders for 8,8063 Xiaomi SU7 cars have been confirmed, and the overall delivery in April was 7058 units. Management aims to deliver 10,000 units per month in June and over 100,000 units in FY2024, with a target of 120,000 units. The bank believes this goal is attainable.