Deutsche Bank released a research report stating that it gave Xiaomi Group-W (01810) a “buy” rating, with a target price of HK$43. The bank expects the annual production capacity of the first phase of Xiaomi's Beijing plant to reach 0.3 million vehicles this year. Since Xiaomi is building the second phase of the Beijing plant, considering the supply of the upcoming Beijing plant phase II, the bank estimates that there is a possibility that the delivery guidelines for Xiaomi cars in 2025 will be raised.
Xiaomi's sales volume reached a new high in December last year, exceeding market expectations. The delivery volume of electric vehicles in December last year exceeded 0.025 million vehicles (compared to 23,143 vehicles in November last year, setting a new monthly delivery high. On a weekly basis, the weekly delivery volume of Xiaomi electric vehicles from the first week to the fourth week of December last year was about 5,400, 5,800, 6,000, and 6,700 vehicles, respectively. The bank estimated that Xiaomi's overall delivery volume increased by 10% month-on-month in December last year, and brought delivery volume for the fourth quarter of last year to a new high level. 0.135 million vehicles, in line with the bank's estimate of 0.137 million vehicles.
According to Deutsche Bank, Xiaomi has set a conservative target of 0.3 million vehicles for the full year of this year, which is more than double the year-on-year increase from the delivery volume of more than 0.135 million vehicles in 2024. The bank estimates that Xiaomi's electric vehicles will continue to face short supply due to the backlog of orders on hand and strong monthly new order flow. It is expected that the delivery volume of Xiaomi electric vehicles this year will be determined by its supply capacity rather than by demand.
