Nomura raised its sales and profit forecast for the Xiaomi Group from FY2024 to FY2025 by 3 to 8%.
The Zhitong Finance App learned that Nomura released a research report stating that it maintained the Xiaomi Group-W (01810) “buy” rating, raised its sales and profit forecast by 3 to 8% for fiscal year 2024 to fiscal year 2025, and raised the target price from HK$22 to HK$34. The outlook for the Xiaomi Group is likely to remain strong in the near future, so its electric vehicle market share forecast was adjusted from about 3% in FY2025 to around 15% in FY2027.
The bank mentioned that although memory prices were high in the third quarter of this year, the gross margin of Xiaomi smartphones (SP) during the period should be in the upper half of the bank's earlier forecast range (i.e. 11% to 12%), driven by the product portfolio. Furthermore, Xiaomi's IoT business is still strong, mainly benefiting from mainland home appliance procurement subsidies and continued expansion in overseas markets since September this year. Furthermore, as of the third quarter of this year, shipments of Xiaomi's electric vehicle “SU7” have surged.
