Goldman Sachs: Reaffirms "buy" rating on XIAOMI-W(01810) with target price raised to 38 Hong Kong dollars.

Goldman Sachs released a research report stating that it has reiterated a "buy" rating for XIAOMI-W (01810) and has raised the target price from 33.3 Hong Kong dollars to 38 Hong Kong dollars. The bank believes that the group is still in the early stage of expanding its ecosystem for many years, and its "smart living" strategy is executed well, with continuously increasing brand attractiveness. The report mentioned that although Xiaomi is the best-performing company among the Hang Seng Index constituents for 2024, due to upward revisions in revenue and earnings per share, the bank's revenue forecasts for Xiaomi for 2025 and 2026 are 4% and 13% higher than market expectations respectively, with net profit forecasts higher by 4% and 24% above market expectations. Therefore, Goldman Sachs continues to be optimistic about a rise in Xiaomi's stock price. Goldman Sachs has raised its sales volume forecasts for Xiaomi for 2024 to 2026 (SU7, SU7 Ultra, YU7, and the third model combined) to 135,000/350,000/655,000 units respectively, which are 4%/21%/48% higher than market expectations, due to favorable demand (unrelated to trade-in subsidies) and manufacturing capacity outlook.