Zhong Jin has published a report, forecasting $XIAOMI-W (01810.HK)$ Adjusted net income for the third quarter is expected to grow by 1.3% to 6.065 billion yuan year-on-year, with quarterly revenue expected to reach a historical high. Considering the moderation of storage prices, trends in autos delivery volume, and gross margin improvement, the forecast for adjusted net income for 2024 and 2025 has been raised by 20.2% and 37.9% respectively to 25.281 billion and 322.59 billion yuan.

The report pointed out that Xiaomi's market share of smartphones in the Chinese market in the third quarter is impressive. Xiaomi's current stock price corresponds to forecasted 2024 and 2025 adjusted PEs of 24.3 and 18.5 times annually. The firm maintains its 'outperform industry' rating on the company, based on confidence in its core business and autos business, raising the target price by 39.1% to 32 Hong Kong dollars, corresponding to adjusted PEs of 28.5 and 21.7 times each.