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<Research>JPM Cuts XIAOMI-W TP to $45, Keeps Neutral Rating; Mkt's Core Biz EPS Forecast Yet to Bottom Out
Recommend 27 Positive 46 Negative 32 |
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Over the past six months, XIAOMI-W (01810.HK)'s share price notably lagged behind the HSTECH due to a slowdown in its core earnings growth, JPMorgan's research report said. Despite Xiaomi's continued strong execution, market sentiment surrounding EV turned bearish. Xiaomi's 3Q25 financial report released after the market closed yesterday (18th) showed that feeble smartphone demand, slowing AIoT growth, and monunted cost pressures from rising raw material prices (especially memory) may exacerbate core earnings weakness in the coming quarters. Therefore, JPMorgan expected Xiaomi's core earnings to sink 15% YoY in 1H26. Considering that capacity constraints are a major hinderance to further increasing EV shipments, market expectations may remain suppressed until Xiaomi obtains a license for its second EV factory. JPMorgan revised down its EPS estimates for Xiaomi's FY2026 and FY2027 by 9% and 2%, respectively, and reduced the target price from HKD50 to HKD45, maintaining a Neutral rating to reflect a cautious outlook on Xiaomi's core business and the downbeat sentiment towards EV. AASTOCKS Financial News Website: www.aastocks.com |
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