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On Tuesday, JPMorgan analysts reiterated their Neutral rating on Xiaomi (OTC:XIACF) Corp stock following the company’s Investor Day. The price target remains unchanged at HK$60.00.
Xiaomi presented several key financial targets during the event, including an adjusted net profit growth of over 40% and revenue growth exceeding 30% by 2025. The company also set an electric vehicle (EV) delivery target of 350,000 units, with expectations of breaking even in the EV business in the second half of 2025.
The Investor Day highlighted Xiaomi’s focus on premiumization across its product categories and plans to double its international business within three years. This growth is attributed to smartphone market share gains and the expansion of AIoT products. The company also emphasized renewed investments in research and development, particularly in AI, chips, and smart manufacturing.
Despite the positive outlook on Xiaomi’s brand presence and EV growth, JPMorgan analysts noted the lack of new catalysts that could elevate street estimates. They observed that Bloomberg’s estimates already project a 51% adjusted net profit growth, compared to Xiaomi’s guidance of over 40%.
Given the absence of additional upside in EV shipment guidance or pricing details on the YU7 model, the analysts suggested that Xiaomi’s stock might remain within a certain range, potentially leading to short-term profit-taking.
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