Morgan Stanley: Maintains Xiaomi Group-W (01810.HK) "Overweight" rating; average smartphone selling price expected to reach a record high in the second quarter.

According to the latest report from Morgan Stanley, Xiaomi Group-W (01810.HK) is set to announce its second-quarter results for this year on August 18. Currently, strong expectations are in place for smartphone shipments and gross margin performance. The groups quarterly total revenue is expected to exceed 100 billion RMB, with a recurring net profit of around 6 billion RMB. Morgan Stanley maintains an "Overweight" rating and a target price of 32 HKD for Xiaomi. The firm stated that according to Omdia's latest data, Xiaomi's smartphone shipments in the second quarter reached 31.2 million units, which is 15% higher than their expectations. Benefiting from a record-high average selling price and resilient shipment volumes, the firm anticipates that the smartphone gross margin will remain above 8% in the second quarter, primarily reflecting the pass-through effect of rising costs.