Wisdom Financial APP learned that Bank of America Securities released a research report stating that it has raised Xiaomi Corporation-W's (01810) profit forecast adjusted for the years 2021 to 2026 by 9% to 13% to reflect positive factors. The target price has accordingly increased from 22 Hong Kong dollars to 32 Hong Kong dollars, reiterating a 'buy' rating.

The bank indicated that it has raised Xiaomi Corporation's third-quarter sales forecast by 4% to 91 billion RMB (continued below), to reflect strong delivery volumes of smart phones and robust sales of electric vehicles. It has also raised the forecast of actual operating income by 3% to 5.3 billion RMB, mainly due to a good scale and a rise in accessory prices possibly leading to an increase in gross profit.

The bank pointed out that the company's fourth-quarter smart phone sales are expected to further increase due to year-end promotions and the launch of new models. The outlook for next year and 2026 is positive, mainly driven by stronger demand in emerging markets and Xiaomi's successful entry into the high-end market. At the same time, strong demand for the company's electric vehicles is expected to improve gross profit further, possibly due to a better scale and product mix. The SU7 Ultra and SUV will help increase sales volume and average selling price; while sales and gross profit of the internet of things should maintain rapid growth.