＜Research＞BOCI Increments XIAOMI-W (01810.HK) TP to $25.72, Raises EV Sales & Gross Margin Forecasts

　　BOCI issued a report after its team attended XIAOMI-W (01810.HK) -0.100 (-0.581%) Short selling $375.73M; Ratio 18.639% 's annual event on Friday (19 July). During the event, CEO Lei Jun showcased the company's newest foldable phone series MIX Fold4, its first flip phone MIX Flip, Redmi K70 Ultra, wearables, large home appliances, and the SU7 Ultra prototype.

　　The broker is encouraged by XIAOMI's progress towards premiumisation as the new products continue to demonstrate competitive performance with a sleeker and more luxurious design language, and is particularly bullish on the company's ability to replicate the success of the SU7 in future product lines. As a result, the broker raised its EV sales and margin forecasts from 2024 to 2026.

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　　BOCI believed that foldable mobile phones such as the MIX Fold and Flip would become XIAOMI's new growth drivers, and forecasted the company's EV sales to reach 120,000, 240,000 and 410,000 units for 2024/25/26, with gross margins expected to be 10%, 15% and 18% respectively.

　　BOCI raised its adjusted earnings per share forecasts on XIAOMI for 2024/25/26 by 1%, 4% and 11% respectively. On a Sum-of-the-Parts (SOTP) basis, the broker slightly raised its target price on XIAOMI from $25.18 to $25.72, based on a P/E multiple of 15x for its traditional business and a P/S multiple of 3x for its electric vehicle business. The broker also reiterated the company as its top pick and rated it Buy.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-22 16:25.)

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