CMB International Securities analyst Alex NG reiterated a Buy rating on Xiaomi (XIACF – Research Report) today and set a price target of HK$59.52.
Alex NG has given his Buy rating due to a combination of factors including Xiaomi’s impressive financial performance and strategic initiatives. The company reported significant growth in both revenue and adjusted net profit for the fourth quarter of 2024, surpassing expectations due to strong contributions from its IoT and electric vehicle segments. Furthermore, Xiaomi’s gross profit margin for electric vehicles improved, and the management increased their 2025 delivery target, reflecting robust demand.
Looking forward, Alex NG is optimistic about Xiaomi’s “Human x Car x Home” strategy, which is supported by the premiumization of smartphones, expansion in AIoT markets overseas, and the anticipated growth in electric vehicle sales. The company plans to expand its retail network significantly, which is expected to further drive sales across its product segments. These strategic moves, along with the projected growth in revenue and net profit, underpin the Buy recommendation with a new target price, suggesting a strong potential upside.
NG covers the Technology sector, focusing on stocks such as Xiaomi, AAC Technologies Holdings, and BYD Electronic (International) Co. According to TipRanks, NG has an average return of 65.0% and a 79.17% success rate on recommended stocks.
In another report released today, UOB Kay Hian also maintained a Buy rating on the stock with a HK$63.90 price target.