Lates News

JPMorgan research report indicates that Xiaomi's momentum in electric vehicles is better than expected, with a delivery volume of approximately 110,000 vehicles in the third quarter and the business may turn profitable. Although the approval for the second factory in Beijing has been delayed, the delivery volume in the fourth quarter may further increase. With healthy demand and the launch of a new large SUV next year, as well as the opening of exports in 2027, the bank expects the shipment volume of electric vehicles to increase by 23% in 2027, and profitability is also expected to improve. It is expected that the net profit margin in the second half of 2027 will be 4.5%. However, the deterioration of core business profitability is more severe than the bank's already cautious expectations. The bank expects core profitability to continue to be under pressure for the next two to three quarters, and significant year-on-year growth may not occur until the second half of next year. Considering the sharp deterioration in core business, the bank has lowered its operating profit forecast for Xiaomi's core business in 2026 and 2027 by 2% and 1%, maintaining a "neutral" rating with a target price lowered from 60 Hong Kong dollars to 50 Hong Kong dollars.