Yamato raises Xiaomi Group-W (01810.HK) target price to 78 Hong Kong dollars, reiterates "Buy" rating.

According to the Zhitong Finance APP, Daiwa released a research report stating that Xiaomi Group-W (01810.HK) will drive its long-term growth through the high-end development of its IoT business. The group diversified its IoT product line by adding new home appliance products and has long been focusing on the high-end development and overseas expansion of IoT. Daiwa reiterated its "buy" rating on Xiaomi, raising its 12-month target price from 70 Hong Kong dollars to 78 Hong Kong dollars, still based on an average P/E ratio of 38 times for 2025 to 2026. Based on the improved prospects and profitability of Xiaomi Group's IoT business, Daiwa raised its earnings forecasts per share for 2025 to 2027 by 1% to 13%.