Goldman Sachs: Reiterates "Buy" rating on XIAOMI-W (01810) with a target price of HKD 38

LB Select
2025.01.24 06:47
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Looking ahead to the first quarter of 2025, Goldman Sachs believes that national subsidy policies may increase XIAOMI's shipments in China

Goldman Sachs released a research report stating that it reaffirms the "Buy" rating for XIAOMI-W (01810) with a target price of HKD 38. The government launched a subsidy policy yesterday, which may lead to an increase in smartphone sales, but competition in the RMB 4,000-6,000 segment will intensify.

Looking ahead to the first quarter of 2025, Goldman Sachs believes that the national subsidy policy may increase Xiaomi's shipments in China. The firm believes that the gross profit contribution from Xiaomi's smartphones will decrease over time, mainly due to the structural growth of Internet of Things (IoT) and Internet revenues, especially the rapid growth of IoT revenue and the increase in gross profit margins, which should provide higher sustainability for long-term growth and profitability

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