HK Stock Market Move | Xiaomi (01810) fell more than 4% in early trading, Citi predicts that its third quarter performance may be slightly lower than expected.

XIAOMI-W (01810) fell more than 4% in early trading, hitting a low of 43.88 Hong Kong dollars, the lowest since April this year. As of the time of writing, it was down 3.22% to 44.44 Hong Kong dollars, with a trading volume of 7.075 billion Hong Kong dollars. On the news front, Citigroup released a research report stating that Xiaomi Group is expected to announce its third-quarter performance for 2025 on November 18. Overall, the performance may be slightly lower than the bank's expectations, mainly due to lower-than-expected gross profit margin for smartphones and Internet of Things (IoT) revenue, while Internet and electric car businesses are generally in line with expectations. Citigroup now expects the group's adjusted net profit to reach 10.2 billion yuan (a 64% increase year-on-year, a 5% decrease quarterly), dragged down by unfavorable smartphone gross profit margins due to regional composition and rising memory prices, as well as IoT revenue affected by the weakening of Chinese subsidies. Huatai, on the other hand, expects that Xiaomi's automotive business may turn losses into profits in the third quarter. In the context of rising storage prices, the company is focusing on a high-end strategy, partially offsetting the adverse effects in the industry, and is expected to maintain a gross profit margin of around 11% in the second half of the year; IoT business, despite the slowdown in revenue growth due to the reduction in subsidies, did not have promotional activities in the third quarter, and the company's IoT gross margin is expected to continue to remain strong; Internet business continues to remain stable.