Jinwu Financial News | According to CMB International Development Research Report, the 1Q24 revenue and adjusted net profit of the Xiaomi Group (01810) are expected to increase 26%/67% year-on-year to 75.2 billion yuan/5.4 billion yuan. The bank's revenue/adjusted net profit forecast is 5%/19% higher than market consistency expectations. The bank believes that strong performance will come from a significant increase in mobile phone market share, impressive gross margin performance of various product lines, and effective control of core expenses.
Overall, the bank expects annual shipments of Xiaomi phones to increase 14% year over year to 167 million units. In terms of AIoT and Internet services, the bank expects revenue growth of 19%/7% year-on-year in the first quarter, respectively, and gross margin is expected to reach 18.5%/75.0%.
The bank raised the company's FY24-26 EEPS forecast by 11-21% and raised the target price from HK$22.19 to HK$23.77 to maintain the buying rating; the bank's FY24-26 EEPS forecast was 17%-25% higher than the market's consistency forecast. The bank is optimistic that the company will reveal more EV business progress and continued strong core business conditions in the upcoming 1Q24 results disclosure, which is expected to continue to support and catalyze the company's stock price.