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<Research>Jefferies Downgrades XIAOMI-W (01810.HK) to Underperform, Cuts TP to HKD25.49
Recommend 16 Positive 24 Negative 22 |
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XIAOMI-W (01810.HK)'s 1Q26 results missed expectations at the EBIT level, Jefferies said in its report. Coupled with elevated market expectations and EV valuation pressure, the broker downgraded the stock from Hold to Underperform and cut the TP from HKD26.98 to HKD25.49, implying a 14% downside from yesterday's closing price. 1Q26 revenue and gross margin were broadly in line, but EBIT plunged 70% YoY, falling 16% and 44% below Jefferies' and market's estimates, respectively. This was mainly due to negative operating leverage from declining smartphone and AIoT revenue, as well as a 33% hike in R&D expenses. EV revenue grew only 8%, hijacked by the model transition of the SU7 and slower sales of the YU7. XIAOMI-W maintained its guidance for a 10% downfall in smartphone revenue and an 8% gross margin in 2026, but saw immense challenges as around 60% of handset shipments stem from models priced below USD200, and price hikes for mid- to high-end models are insufficient to offset rising memory costs. Management remained confident in its 2026 EV delivery target of 550,000 units, but Jefferies lowered its 2026 and 2027 delivery forecasts to 495,000 units and 880,000 units, respectively. 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
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