Goldman Sachs believes that the Xiaomi Group's electric vehicle revenue and gross profit forecast has room for further improvement.
The Zhitong Finance App learned that Goldman Sachs released a research report stating that it believes that Xiaomi Group-W (01810) has successfully penetrated the price range of smart electric vehicles and high-end smartphones, as well as its ability across industries, to support the group in building a world-leading integrated technology platform. The bank was pleasantly surprised by Xiaomi's sales volume and profit margin for electric vehicles this year, as well as the model target for high-end smartphones; it reiterated its “buy” rating, with a target price of HK$20, and believed that its electric vehicle revenue and gross profit forecast had room for further improvement.
The bank pointed out that by the end of this year, the number of electric vehicles delivered by Xiaomi could reach more than 100,000 units, with a gross margin of 5 to 10%, reflecting positive unit economy and operating leverage. The Group expects revenue to exceed 300 billion yuan (RMB. same below), mobile phone shipments to increase by 15 to 20 million units year on year, overall R&D expenditure to increase 26% year over year to 24 billion yuan, and plans to open 10,000 new Xiaomi home furnishing stores from 2024 to 26.