Goldman Sachs: Raises Xiaomi's target price to HKD 58, expects fourth-quarter revenue to grow 44% year-on-year

Goldman Sachs released a report stating that after launching several cost-competitive, benchmark-leading, and open-source artificial intelligence LLMs in the past few months, the number of use cases has been continuously increasing. It believes that Xiaomi is ready to enhance its artificial intelligence capabilities more efficiently, leveraging AI to expand its "human-vehicle-home" ecosystem and boost sales, building an operating system-level AI agent and an omnipresent ecosystem. The firm raised its target price from HKD 38 to HKD 58, maintaining a "Buy" rating. Goldman Sachs expects Xiaomi's revenue for the fourth quarter of last year to be HKD 105 billion, a year-on-year growth of 44%, with a non-IFRS net profit of HKD 6.6 billion, a year-on-year growth of 34%. After deducting losses of HKD 900 million from the EV business and others, the core adjusted net profit is expected to be HKD 7.5 billion