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<Research> Citi Cuts XIAOMI-W (01810.HK) TP to HKD37; 1Q26 Seen as Off-season with Results In Line
Recommend 27 Positive 46 Negative 20 |
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Citi released a research report stating that XIAOMI-W (01810.HK) is expected to announce its results for 1Q26 by end-May. The broker expects the first quarter to be an off-season, with adjusted net profit coming in 16% below market expectations, mainly due to weak sales of smartphones, IoT products and electric vehicles, as well as the negative impact of vehicle purchase tax subsidies on margins. However, it believes these factors have largely been digested by the market and are within expectations. The broker expects overall gross margin in 1Q26 to potentially beat market expectations despite lower revenue. Citi forecasts total revenue for 1Q26 to decline 12% YoY to RMB98.4 billion, while adjusted net profit is expected to fall 45% YoY to RMB5.9 billion. Among segments, smartphone revenue is projected to drop 14% YoY to RMB43.3 billion, with shipment volume down 19% YoY but average selling price (ASP) up 6% YoY. IoT revenue is expected to decrease 22% YoY to RMB25.3 billion, while internet services revenue is seen rising 5% YoY to RMB9.5 billion. The broker estimates EV ASP to decline 5% QoQ to RMB244,000 due to subsidies, contributing approximately RMB19.7 billion in revenue, while the EV business is expected to record an operating loss of RMB3.5 billion. In light of its 1Q26 earnings outlook, Citi revised its earnings forecasts for XIAOMI-W, lowering EPS estimates for 2026 to 2028 by 9%, 13% and 13%, respectively. The broker cut its TP from HKD40 to HKD37 and maintained a Buy rating, believing that 1Q26 results, 2Q guidance and the launch of the YU7 GT model will serve as near-term catalysts. (ad/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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