After a long period of dormancy,$XIAOMI-W (01810.HK)$has recently seen a rebound.
The company's share price once bottomed out at HKD 36.62 in late November, hitting its lowest level since April this year, but surged strongly today. As of the time of writing, it had risen by 3.18% to HKD 41.50.
Yesterday,$XIAOMI-W (01810.HK)$Lu Weibing, President of Xiaomi Group, sparked widespread market discussion with his remarks on social media: "We began making intensive investments in the AI field several quarters ago. Although we cannot disclose too much at this stage, our progress in large AI models and applications has far exceeded expectations." This statement came at an opportune moment, injecting strong confidence into the market.
Notably, Goldman Sachs and HSBC Qianhai Securities have recently issued research reports on Xiaomi, both assigning a "Buy" rating.
In its report, Goldman Sachs set a target price of HKD 53.50 for Xiaomi, indicating a 22% upside from the current share price. The report praised Xiaomi without reservation: "Xiaomi is no longer just a smartphone manufacturer; it is emerging as one of the largest consumer-grade physical intelligent ecosystems globally."
The report particularly highlighted Xiaomi’s MiMo-Embodied model, released on November 21, which integrates autonomous driving and embodied AI capabilities. This cross-modal foundational model has achieved industry-leading performance in 17 embodied AI benchmarks and 12 autonomous driving tests. Its accompanying enhanced HAD (High-level Assisted Driving) system is especially impressive: 473,000 active users (accounting for 90% of Xiaomi vehicle users), over 300 million kilometers of assisted driving mileage accumulated, and successfully preventing 457,000 potential collisions – these figures demonstrate Xiaomi's ability to implement AI technology effectively.
"Xiaomi's AI R&D investment is projected to reach over CNY 7 billion in 2025, accounting for 22% of its total R&D expenditure of CNY 32 billion." The report noted that the company has established specialized teams including MiMo, MiML Plus, and AI Lab. The autonomous driving team alone exceeds 1,800 members, among whom are 108 PhD experts. Since 2023, Xiaomi has intensively launched multiple AI models such as MiLM, MiMo, MiMo-VL, and MiDashengLM, further refining its technological portfolio.
HSBC Qianhai highlighted the resilience of the company’s business operations.
In contrast to Goldman Sachs' AI perspective, HSBC Qianhai Securities has focused on$XIAOMI-W (01810.HK)$the fundamental business operations, maintaining a "Buy" rating and assigning a target price of HKD 62.80, implying a potential upside of 54%.
Analysis shows that Xiaomi Group's Non-IFRS net profit reached CNY 11.3 billion in Q3 2025, marking an impressive year-on-year increase of 81%, surpassing market expectations by 13%. Highlights included: the electric vehicle (EV) business achieving its first quarterly operating profit of CNY 70 million; vehicle deliveries increasing sharply by 34% quarter-on-quarter; and the IoT business improving gross margin by 1.4 percentage points to 23.9% through product mix optimization.
Of course, challenges remain: the average selling price (ASP) of smartphones slightly declined to CNY 1,063, with gross margin experiencing a minor pullback. Additionally, in 2026, the company will face pressures from rising memory costs and the phasing out of vehicle purchase tax subsidies. In response, Xiaomi Group has adjusted its strategic focus—shifting from pursuing shipment volumes to enhancing ASP—and will strengthen high-end manufacturing capabilities via the Wuhan smart factory, which is set to commence operations in October 2025.
Editor/melody
