Xiaomi (01810.HK) will announce its third quarter results ending in September next Monday (the 18th), benefiting from the strong sales of smart phones, smooth delivery of electric cars, overseas demand, and support for IoT business and good cost control through trade-in subsidies in mainland China. This offsets the impact of the original material inventory (the effect of chip price increases transmitting to mobile terminal manufacturers may lead to a seasonal low in mobile phone gross margin for the whole year) and the losses in the electric car business. Based on a comprehensive analysis of 10 brokerages, Xiaomi's adjusted net profit after non-international financial reporting standards for the third quarter of 2024 is expected to range between 5.928 billion and 6.2 billion yuan, compared to 5.99 billion yuan in the same period of 2023, a decrease of 1% to an increase of 3.5% year-on-year, with a median of 6.054 billion yuan, up 1.1% year-on-year.

Recent deliveries of mobile phones and automobiles under Xiaomi have been impressive, and investors will focus on Xiaomi's management's latest guidance, gross margin, and the 'smartphone + automobile + home' ecosystem goals.

The following table lists the ratings and target prices of 14 brokerages:

Brokerage | Investment Rating | Target Price

HSBC Global Research│Buy│36.7 yuan

BOCI Securities│Buy│36 yuan

Nomura│Buy│34 yuan

Haitong Int'l│Outperform│33 yuan

Lion City | Outperform Market | $32.5

Bank of China International | Buy | $32.29

Bank of America Securities | Buy | $32

Da Hua Ji Xian | Buy | $31.7

Jianyin International | Outperform Market | $31

Citi | Buy | $30.6

Goldman Sachs | Buy | $30.7

Daiwa | Outperform Market | $30.5

Morgan Stanley│Shareholding│$26

Huatai Securities│Buy│$25