Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>CLSA Estimates Weak 1Q Results for XIAOMI-W, Cuts TP to HKD41, Rates Outperform
Recommend 25 Positive 48 Negative 14 |
||||
|
||||
|
CLSA issued a report expecting XIAOMI-W (01810.HK) to deliver weak results for 1Q26. The broker forecast total revenue and adjusted EBIT to sink 10.7% and 41% YoY to RMB99.4 billion and RMB6.5 billion, respectively. During the period, swelling memory costs led the company to sharply cut low-end models, giving rise to a 19% YoY slip in smartphone shipments. The broker expected smartphone revenue in 1Q26 to sag 13% YoY to RMB44.3 billion. According to IDC data, global shipments shrank 19% YoY to 33.8 million units. Among them, shipments in China, India and other regions faded 35%, 6% and 13% YoY, respectively, mainly because XIAOMI-W reduced certain low-end and unprofitable models. Although the blended ASP may rise about 8% YoY to RMB1,308 to offset cost inflation, gross margin is expected to remain at around 9.7%. CLSA noted that macro challenges will persist in 2026. XIAOMI-W will accelerate its premiumization strategy and overseas expansion to juice growth, while continuing to invest in R&D and AI. The broker lowered its adjusted net profit forecasts for 2026 and 2027 by 15% and 12%, respectively, and cut its TP from HKD45 to HKD41, while maintaining an Outperform rating. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
