HSBC: Expects Xiaomi Group-W(01810.HK) IoT business to continue strong growth in the second quarter, neutral rating.

Zhixin Finance APP learned that J.P. Morgan released a research report stating that Xiaomi Corporation-W (01810.HK) has further increased its market share in the air conditioner and other household appliance markets, coupled with continuous optimization of its product structure, it is expected to support a high gross profit margin in the next quarter. However, investors are reminded to be cautious in the second half of the year, as the end of the peak season for sales of large household appliances and the reduction of national subsidies may affect the sustainability of strong growth, which could become a key factor affecting the financial performance of the group. The earnings per share forecast for the current and next year has been raised by 12.8% and 3.7%, respectively. It is expected that the growth rate of Xiaomi's IoT business will stabilize at around 20% in 2026 and 2027, and a "neutral" rating is given.