Goldman Sachs Reinstates "Buy" Rating on XIAOMI-W (01810) and Raises Target Price to 63 Hong Kong Dollars

Goldman Sachs released a research report stating that it maintains a "buy" rating on XIAOMI-W (01810), with a target price raised from HK$58 to HK$63. The average revenue forecast for Xiaomi for the fiscal years 2025-2027 has been adjusted upwards by 3%, and the adjusted net profit forecast has been raised by 9%. Goldman Sachs pointed out that Xiaomi Group's fourth-quarter performance in the fiscal year 2024 continued to exceed expectations. During the period, revenue increased by 49% year-on-year, higher than the bank's and market's expectations by 3% and 6%, respectively; adjusted net profit increased by 70% year-on-year, surpassing the bank's and market's expectations by 26% and 32%. The bank believes that last year was just the beginning of Xiaomi's multi-year growth trajectory, mainly benefiting from the expansion of its "person, car, and home" ecosystem, increased investment in six core strategies, and the enhancement of its global consumer brand appeal. The bank believes that Xiaomi's challenges at the Nurburgring racetrack with the "SU7 Ultra," the 15th anniversary product release event, and the Shanghai Auto Show in April-May are all potential catalysts for Xiaomi's future stock price.