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<Research>JPM Trims XIAOMI-W (01810.HK) TP to $50 on Strong EV Momentum, but Core Biz Profit Weaker Than Expected
Recommend 13 Positive 24 Negative 7 |
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XIAOMI-W (01810.HK)'s EV momentum was better than expected, with 3Q25 deliveries reaching approx. 110,000 units, and the business possibly turning profitable, according to JPMorgan's research report. Although the approval for the second factory in Beijing is delayed, 4Q25 deliveries may further increase. Demand remained healthy. With the launch of a new large SUV next year and the opening of exports in 2027, the broker expected a 23% growth in EV shipments in 2027, with profitability also improving, and forecasted a net profit margin of 4.5% in 2H27. However, the decline in core business profit was more severe than JPMorgan's already cautious expectations due to the slowdown in China's smartphone business, a correction in IoT segment after a peak in 2Q25 demand, and gross margin pressures due to rising component costs. Considering the sharp deterioration in core business, JPMorgan lowered its 2026/ 2027 core business operating profit forecasts for XIAOMI-W by 2%/ 1% each. The broker kept rating at Neutral, and trimmed its target price from $60 to $50. AASTOCKS Financial News Website: www.aastocks.com |
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