Lyon: Maintaining Xiaomi's "highly confident in outperforming the market" rating, expecting strong performance in the first quarter.

Lyon expects Xiaomi's first quarter performance to be strong, with revenue expected to increase by 44.6% year-on-year to 109 billion yuan, and adjusted net profit expected to increase by 54% year-on-year to 10 billion yuan. Its sales of smartphones, IoT devices, and electric cars in China have all performed strongly, benefiting from trade-in subsidies and market share growth. Gross profit margin has increased again this quarter, and losses in the electric car business may further narrow to 650 million yuan. The bank has raised its forecast for Xiaomi's electric car deliveries this year to 400,000 units, and has increased its forecast for Xiaomi's adjusted net profit for this year and next year by 8% and 4% respectively. The bank maintains a "highly confident outperforming the market" rating and a target price of HK$69.