BofA Securities reduced the 1Q22E sales and adjusted earnings for $XIAOMI-W(01810.HK)$ by 6% and 31%, respectively, to factor in the latest 1Q smartphone shipment volume data published by a third party provider and ongoing operation burden caused by elevated logistics costs.
In light of the weak outlook for the smartphone market and pressure on internet earnings, the broker reiterated the Underperform rating for XIAOMI-W and chopped its target price from $11.5 to $9.8.
The smartphone shipment of XIAOMI-W was predicted to face multiple headwinds throughout this year amid macroeconomic weakness in Europe. The 2022-23E shipment volume were lowered to 179 million units and 200 million units, respectively, compared to previous estimates of 190 million units and 204 million units.
Concerned about the rising opex ratio on the company's electric vehicle (EV) expansion, the broker likewise trimmed the 2022-23E earnings by 15% and 9%, respectively.