Jinwu Financial News | According to the J.P. Morgan Chase Research Report, Xiaomi Group (01810) will announce its results for the first quarter of this year this year. Benefiting from the healthy gross profit margin of smart phones and artificial intelligence IoT products, strong growth in flagship phones, and stable internet service revenue, it is expected that its core profit performance will remain strong in the first quarter.
According to the bank, Xiaomi is still a key catalyst for stock prices, and sales and orders are expected to remain strong in the next few quarters. It is expected that Xiaomi will ship more than 100,000 vehicles in 2024, and launch more models in the next few quarters. The gross margin of the automobile business is likely to change rapidly and reach 5%-10% by 2025.
The bank continued that the gross margin of the company's core business is expected to remain resilient, and the automobile business is expected to accelerate development. Earnings per share forecasts for this year and next two years were raised by about 14% and 2% respectively, while increasing the target price by 14% from HK$21 to HK$24.