CICC: Raises Xiaomi's target price to HKD 24.5, adjusts net profit forecast for this year and next year

Lyon's report stated that Xiaomi's performance in the second quarter exceeded expectations in all business segments. Total revenue for the period increased by 32% year-on-year to 89 billion yuan, surpassing the bank's expectations by 2%; adjusted net profit increased by 20% to 6.2 billion yuan, 20% higher than the bank's expectations. Driven by global shipment growth and increasing market share in China's high-end market, Xiaomi's smartphone business revenue grew by 27% year-on-year. IoT business revenue increased by 20% year-on-year, mainly driven by large appliances, tablets, and wearable devices. The company delivered 27,000 electric vehicles, with expectations to reach 120,000 by December. Excluding the electric vehicle business, Xiaomi's core profit in the second quarter reached 8 billion yuan. The bank expects Xiaomi's third-quarter revenue to grow by 20% year-on-year with the sale of electric vehicles. Profit forecasts for Xiaomi's adjusted net profit for the next two years have been raised by 15% and 12%, respectively. Lyon raised Xiaomi's target price from 23.5 Hong Kong dollars to 24.5 Hong Kong dollars, maintaining an "outperform" rating