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2026-05-18 13:22:59 CLSA issued a report expecting XIAOMI-W (01810.HK) to deliver weak results for 1Q26. The broker forecast total revenue and adjusted EBIT to decline 10.7% YoY and 41% YoY to RMB99.4 billion and RMB6.5 billion, respectively. During the period, surging memory costs led the company to significantly cut low-end models, resulting in a 19% YoY drop in smartphone shipments. In addition, AIoT sales were affected by a high base last year, while electric vehicle (EV) sales came under pressure due to reduced government subsidies and cooling buyer interest. The broker expected smartphone revenue in 1Q26 to fall 13% YoY to RMB44.3 billion. According to IDC data, global shipments declined 19% YoY to 33.8 million units. Among them, shipments in China, India and other regions decreased 35%, 6% and 13% YoY, respectively, mainly because XIAOMI-W reduced certain low-end and unprofitable models. Although the blended average selling price may increase 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 drive growth, while continuing to invest in research and development 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. (da/a)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese 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. | |