HK Stock Market Move | XIAOMI-W(01810) fell more than 3%, with stock prices dropping by 25% in the past month. Institutions predict that its Q3 mobile phone gross profit margin will be under pressure.

Xiaomi-W (01810) fell more than 3%, with its stock price dropping by 25% in the past month. As of the time of writing, it had fallen by 3.01% to 44.42 Hong Kong dollars, with a turnover of 5.994 billion Hong Kong dollars. On the news front, the current memory chip market is facing a price hike trend, with Xiaomi Group founder Lei Jun bluntly stating on Weibo on the 24th that "recent memory price increases are too high." Credit Suisse believes that due to the decline in China's sales ratio and the impact of memory price increases, it is expected that Xiaomi's Q3 mobile phone gross profit margin will slightly decrease by 0.5 percentage points to 11% compared to the previous quarter. According to Lu Weibing disclosed on October 23rd, the total sales volume of the Xiaomi 17 series released at the end of September increased by 30% compared to the previous generation, with the Pro version accounting for over 80%. The high-end transformation has achieved significant results, which Credit Suisse believes may offset some of the impact of the Q4 memory price hike. In addition, car delivery volume is steadily increasing, and is expected to bring operational profitability. Citigroup research report pointed out that Xiaomi Group is expected to announce its third-quarter 2025 performance on November 18. Overall, the performance may be slightly lower than expected due to lower-than-expected smartphone gross profit margins and Internet of Things (IoT) income, while Internet business and electric vehicle business are generally in line with expectations. Citigroup now predicts that the Group's adjusted net profit will reach RMB 10.2 billion (a 64% increase year-on-year, a 5% decrease quarterly), dragged down by unfavorable regional composition of smartphone gross profit margins and rising memory prices, as well as the impact of weakening IoT income due to reduced Chinese subsidies.