CICC: Lower target price of XIAOMI-W(01810) to 70 Hong Kong dollars, expected adjusted net profit to increase by 64.8% in the second quarter.

CICC released a research report stating that it is expected that XIAOMI-W (01810) will achieve a revenue of 117.97 billion yuan in the second quarter of 2025, a year-on-year growth of 32.71%, with an adjusted net profit of 10.18 billion yuan, a year-on-year growth of 64.84% (including a loss of 360 million yuan in electric vehicles and innovative businesses). The profit forecast remains basically unchanged, with the current stock price corresponding to a price-earnings ratio of 26.5 times and 19.3 times for adjusted net profit in 2025 and 2026 respectively. Considering the downward shift in industry valuation, the bank has lowered Xiaomi's target price by 9% to 70 Hong Kong dollars, corresponding to price-earnings ratios of 34.4 times and 25.1 times for 2025 and 2026, respectively, with a potential upside of 29.6%. The bank maintains a "outperform industry" rating.