CMB International has released a research report that maintains a "buy" rating on Xiaomi Group, believing that the recent adjustment in the company's stock price provides a good buying opportunity, with a target price of HKD 25.39. The bank held an online technology enterprise week investor communication event with Xiaomi Group. Overall, the bank holds a positive view of Xiaomi's continuous market share acquisition in the global smartphone market, explosive growth of IoT business, continuous improvement of overseas Internet business, and increase in new energy vehicle delivery volume this year.

The research report points out that the gross margin of Xiaomi's mobile phones maintained a high level in 1Q24, mainly due to the digestion of previously low-cost storage product stocking. The gross margin of mobile phones in 2Q24 is expected to decline slightly on a month-on-month basis, but is expected to gradually recover in 2H24E. Storage prices will be relatively stable in the second half of the year, and Xiaomi will also launch flagship new models such as MIX Fold 4 and Xiaomi 15, which have a positive driving effect on cost control and gross margin stabilization. The management expressed confidence in achieving the target of shipping 165 million mobile phones this year, with the main growth driver coming from international markets, including the Americas, Africa, the Middle East, and Southeast Asia. In addition, the management stated that the annual delivery target of 120,000 units for the Xiaomi SU7 series of new energy vehicles and the June monthly delivery target of 10,000 units will remain unchanged, and the current main task is to increase production capacity.