UBS Group's report pointed out that Xiaomi's performance in the third quarter hit a record high, with profitability in core businesses (smartphones, Internet of Things and consumer products, as well as internet services) and the gross margin of its electric car business exceeding the bank's and market expectations. The bank believes that Xiaomi's strong execution in high-end global strategy will drive stable growth in its core profits and unleash the upward potential of its smart electric car business.

The bank reiterated its "buy" rating on Xiaomi, raising the target price from 20 Hong Kong dollars to 33.5 Hong Kong dollars, expecting the compound annual growth rate of Xiaomi's smart phone sales from 2025 to 2027 to stabilize at 5.2%, compared to 16.6% in 2024; the transition to the high-end market will continue to drive growth in both product average price and gross margin, with an expected average price exceeding 1100 yuan and a gross margin of over 13%; the forecast for Xiaomi's car shipments in 2025 has been raised from 0.23 million vehicles to 0.26 million vehicles, with the expected long-term gross margin of Xiaomi's electric car business to remain in the high double digits, significantly higher than the 5% forecast in the bank's previous baseline scenario.