Haitong International's research report indicates that Xiaomi-W (01810.HK) is expected to report relatively weak performance for the third quarter, with projected revenue of RMB 109.8 billion (hereinafter the same), and earnings per share of RMB 0.33.
The firm forecasts Xiaomi’s smartphone shipments to reach 43 million units in the third quarter, but mainly concentrated in emerging markets, where lower average selling prices have weighed on overall revenue growth. As a result, the forecast for smartphone revenue has been revised downward from RMB 51.8 billion to RMB 45.8 billion. Additionally, due to reduced government subsidies and the onset of autumn, sales of air conditioners and large home appliances have slowed, prompting a reduction in IoT business revenue forecasts from RMB 30.9 billion to RMB 26.6 billion.
Regarding electric vehicles, the firm believes demand remains strong, while delivery times are gradually shortening, primarily due to increased production capacity rather than weakening demand. The target price for Xiaomi has been lowered to HKD 57.4, with a reiterated 'Outperform' rating.
