HSBC research released a report stating that Xiaomi (01810.HK) stock price has risen by 45% since September, outperforming the Hang Seng Index by about 17% during the same period. The outstanding performance of Xiaomi's stock price is believed to be mainly driven by continued growth in Xiaomi SU7 orders and deliveries, as well as the unveiling of the Xiaomi SU7 Ultra model at a recent event, effectively enhancing its brand image and showcasing advanced research and development capabilities, which is expected to help expand the high-end customer base and increase the average selling price of products.

Therefore, the bank has raised its forecast for Xiaomi's automobile business revenue for 2024 to 2026 by 7%, 30%, and 28% respectively. It is expected that the SUV model that may be launched by the end of this year to early next year, as well as the upcoming third-quarter performance announcement, will all be major catalysts for the stock price.

Xiaomi's smartphone shipments in the third quarter increased by 3.3% year-on-year to 42.8 million units, meeting market expectations. HSBC Research expects Xiaomi's smartphone gross margin to reach a trough and rebound in the third quarter, leading to a 5% increase in net profit forecast for this year. Profit forecasts for 2025 and 2026 are adjusted downwards by 1-2%, maintaining a 'buy' rating, and raising the target price from 27.5 yuan to 36.7 yuan.