XIAOMI Investor Day: Potential Catalyst, Says M Stanley

XIAOMI's upcoming investor day could be a significant catalyst, according to Morgan Stanley.

Management's presentation is anticipated to bolster investor confidence in both its smartphone and electric vehicle (EV) ventures.

In the base case scenario, XIAOMI's non-EV earnings are projected to hit around RMB25 billion, with manageable EV losses of about RMB12 billion, potentially lifting the group's share price by 1-3%.

A bullish outlook suggests non-EV profits of RMB27-28 billion, coupled with EV losses of approximately RMB10 billion, potentially driving a 5-10% increase in the share price.

Conversely, a bearish scenario envisions non-EV profits around RMB20 billion and wider EV losses of about RMB15 billion, potentially leading to a 3-5% decline in XIAOMI's share price.