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2024.04.02 09:02
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Rating Quick Look | Xiaomi's target price significantly raised! Tencent "Buy", SenseTime "Significantly reduced price"

Goldman Sachs believes that Xiaomi's car SU7, with orders far exceeding expectations and a more balanced product mix among three versions, implies stronger sales and average selling price potential than expected. The bank believes that the improvement in Xiaomi's manufacturing capabilities may become the primary focus in the coming months: if the factory adopts a two-shift system, there will be a 100% increase in production capacity

Goldman Sachs: Maintains "Buy" rating on Xiaomi, raises target price from HKD 18.9 to HKD 20

The research report indicates that the debut of Xiaomi's car model SU7 far exceeded expectations. While the price range of $29,800 to $41,400 aligns with expectations, the higher-than-expected orders and a more balanced product mix among the three versions imply that SU7 has stronger sales and average selling price potential than expected.

The bank believes that the improvement in Xiaomi's manufacturing capabilities may become the primary focus in the coming months. The Phase One of Xiaomi's electric car factory, before opening, produces over 300 vehicles per day or 40 vehicles per hour with 900 workers per shift. However, the bank believes that if the factory adopts a two-shift system, there is a 100% capacity increase potential.

The bank has raised Xiaomi's 2024 revenue forecast to RMB 324.4 billion, adjusted the earnings per share forecast to RMB 0.57, and maintained it at RMB 0.76 for 2025.

Northeast Securities: Maintains "Buy" rating on Tencent Holdings

The bank believes that the short-term performance of the gaming business has slowed down due to the decline in core product flows and the underperformance of new games, coupled with intense competition in the domestic and overseas gaming markets. However, the performance of "Star of Yuanmeng" does not indicate a weakening of the company's advantage in the large DAU track. Additionally, several heavyweight products in 2024 are expected to bring performance growth.

Advertising benefits from the improvement in video ads and ad technology, while financial technology benefits from the recovery of offline transaction scenes and business innovation after compliance capabilities are enhanced. At the same time, the company plans to increase its share repurchase scale to HKD 100 billion in 2024.

UBS: Rates Apple as "Neutral" with a target price of $190

Global iPhone sales in February totaled 17.4 million units, a 4% decrease from February 2023's 18.1 million units, with most of the decline concentrated in the US, India, and China. The "low carrier upgrade rate" combined with the success of the Samsung S24 series led to a 9% decline in iPhone sales in the US.

Meanwhile, local Chinese smartphone brands, including Huawei, Xiaomi, Vivo, and Oppo, continue to gain market share, resulting in a 16% year-on-year decline in iPhone sales in China. iPhone sales in India also declined by 13% year-on-year.

UBS analysts stated: "Given the weak performance of the iPhone in the US and Chinese markets, global iPhone sales are unlikely to increase significantly if the Indian market does not show significant growth."

However, iPhone sales in Europe grew by 24% year-on-year, achieving growth for the fourth consecutive quarter. UBS believes that Apple will sell approximately 51 million iPhones in the quarter ending March 31, lower than the 56 million units sold last year.

Lyon: Significantly lowers SenseTime's target price from HKD 1.59 to HKD 0.75, maintains "Underperform" rating

The bank points out that SenseTime's revenue fell by 11% year-on-year last year, with a net loss widening by 7% to RMB 6.4 billion, dragged down by its smart city business. The company is restructuring its revenue sources and focusing on generative artificial intelligence, with management expecting a compound annual growth rate of 30% in revenue from 2023 to 2028. The bank believes that the business related to computing power leasing is growing rapidly, but it will take time for generative artificial intelligence application-related businesses to catch up