CICC: Reducing Xiaomi Corporation's (01810) target price to HK$70, expecting a 64.8% increase in adjusted net profit in the second quarter.

According to the Securities Times APP, CICC released a research report stating that it is expected that Xiaomi Group -W (01810) will achieve a revenue of 117.97 billion yuan in the second quarter of 2025, a year-on-year increase of 32.71%, and an adjusted net profit of 10.18 billion yuan, a year-on-year increase of 64.84% (including a loss of 360 million yuan in electric vehicles and innovative business). Profit forecast remains basically unchanged, with the current stock price corresponding to a price-earnings ratio of 26.5 times and 19.3 times for adjusted net profit in 2025 and 2026 respectively. Taking into account the downward shift in industry valuation, the bank has lowered Xiaomi's target price by 9% to HK$70, corresponding to price-earnings ratios of 34.4 times and 25.1 times for 2025 and 2026 respectively, with a potential upside of 29.6%, maintaining an "outperform industry" rating.