Zhichun Finance APP learned that DAHUA JI XIAN released a research report stating that it expects Xiaomi Corporation-W (01810) to have an adjusted net profit of 6 billion yuan in the third quarter, mainly driven by strong sales and profitability in the internet of things sector, while smart phones, internet services, and electric vehicle business will meet expectations. The firm maintains a 'buy' rating, with the target price raised from 24.4 Hong Kong dollars to 31.7 Hong Kong dollars.

The firm predicts that the company's third-quarter revenue will increase by 25.9% year-on-year to 89.2 billion yuan, gross profit will increase by 2.3 percentage points year-on-year, and quarter-on-quarter will increase by 0.3 percentage points to 20.4%. The firm has raised its pure profit forecasts for the company from year 2022 to 2026 by 13.9%, 29.8%, and 29.9% respectively, while also raising the gross profit for the same period in the internet of things business by 1.3%, 2.6%, and 3.5% respectively. In addition, it is expected that the delivery volume of electric vehicles will increase from 2025 to 2026, and the average selling price will slightly increase due to a better product mix and the launch of a new SUV model early next year.