Goldman Sachs: Reiterates "Buy" rating for XIAOMI-W (01810) with a target price of HK$38.

Goldman Sachs released a research report stating that it reiterates a "buy" rating on XIAOMI-W (01810) with a target price of HK$38. The country started a subsidy policy yesterday, which may lead to an increase in the sale of smartphones, but competition in the 4000-6000 RMB segment market will intensify. Looking ahead to the first quarter of 2025, Goldman Sachs believes that the national subsidy policy may increase Xiaomi's shipment volume in China. The bank believes that the gross profit contribution of Xiaomi smartphones will decrease over time, mainly due to the structural growth of Internet of Things (IoT) and internet revenue, especially rapid growth in IoT revenue. This should lead to higher sustainability of long-term profitability for CKH HOLDINGS.