CMB International released a research report forecasting that XIAOMI-W (01810) will post a 60% year-on-year increase in adjusted net profit to RMB 10.01 billion in Q3, in line with market expectations. Despite rising bill-of-materials (BOM) costs for smartphones, the bank expects the company's Q3 gross margin to reach 22.9%, higher than the market consensus of 22.5%.

The bank reiterated its "Buy" rating but lowered the target price from HK$62.96 to HK$61.3. It maintains a positive outlook for XIAOMI-W's Q4 performance. In smartphones, the bank believes the Xiaomi 17 Pro and Pro Max models will drive a higher sales mix. Meanwhile, the company's electric vehicle segment shows strong delivery momentum, improving profitability, and potential capacity expansion. Internet services are expected to grow steadily, with gross margins reaching 75%.

Overall, CMB International slightly reduced its adjusted net profit forecasts for fiscal years 2025–2027 by 3–4%, reflecting weaker smartphone performance, the EV segment's breakeven in Q3, and rising BOM costs.