Macquarie Ups XIAOMI Target to $31.24 Amid Growth Surge

Macquarie's latest report on XIAOMI highlights a resurgence in growth, with founder Lei Jun aiming for 100,000 SU7 unit sales and positive gross profit margin (GPM) this year.

The analysis underscores Xiaomi's expansion into electric vehicles (EVs) and retail stores, projecting a 21% sales CAGR over three years. Macquarie maintains an Outperform rating, with a revised target price of $31.24, and inclusion in the Asia Marquee Buy list.

Management forecasts SU7 GPM to surpass market expectations, ranging from 5% to 10%. Despite substantial investments in EVs and new ventures, Macquarie anticipates reduced operating losses for EVs, down by RMB2.5 billion to RMB9.5 billion this year.

Adjustments to 2024-26 earnings estimates reflect higher core business operating expenses balanced by decreased EV losses.