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2026-11-02 14:22:39 BofA Securities issued a research report stating that XIAOMI-W (01810.HK)'s 3Q26 preview showed stabilizing smartphone margins, while the broker is focusing on EV momentum in 4Q26. The broker lowered its TP from HKD37 to HKD34 and reiterated its Buy rating. The broker slightly lowered its 3Q26 revenue forecast for XIAOMI-W (01810.HK) by 6% to RMB105 billion, representing a QoQ decline of 6% and a YoY decline of 10%, reflecting relatively sluggish domestic IoT demand and lower-than-expected EV deliveries in the third quarter. The broker expects gross margin to remain broadly stable QoQ as smartphone margins may remain resilient. However, affected by ongoing R&D and operating expenses for new businesses, adjusted operating profit is expected to decline QoQ and YoY to RMB1.4 billion. The broker said XIAOMI-W (01810.HK)'s smartphone shipments exceeded 30 million units in 3Q26, down 2% QoQ but up 7% YoY. The worst phase of rising memory costs appears to have passed, and smartphone gross margin is expected to stabilize. Domestic IoT demand remained weak, but is expected to rebound QoQ in 4Q26 due to promotions. For EVs, shipments exceeded 100,000 vehicles in the third quarter, with monthly deliveries recovering to more than 40,000 units from September and further increasing to over 50,000 units in October. The broker lowered its adjusted earnings forecasts for XIAOMI-W (01810.HK) for 2026 to 2028 by 7% to 14% to reflect continued spending on new businesses. The new TP was derived using the sum-of-the-parts valuation method, valuing the core business at HKD22 per share based on 15x 2027 forecast P/E, and the EV business at HKD12 per share based on 2x 2027 forecast P/S. 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. | |