On September 16th, Morgan Stanley released a research report indicating that if memory prices start to correct in the next few quarters, the bank believes that Xiaomi Group (01810.HK) is likely to become a major beneficiary because its smart phone gross margin is less likely to face downward pressure and is more likely to enjoy potential recovery. Memory is a crucial component of smart phones. The increase in memory costs is the main 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 be on the horizon and predicts that DRAM prices will stabilize with an upward trend in the fourth quarter of 2024. The bank maintains its target price of HKD 26 and a "shareholding" rating.