0741 GMT - Xiaomi is likely to report another round of solid earnings in 1Q, thanks to increased profitability in the electric-vehicle and Internet-of-Things sectors, HSBC Global Research analysts write in a note. The bank expects a "beat and raise" set of numbers with net profit hitting 10 billion yuan, more than double from a year earlier, thanks to around 50% on-year revenue growth in its IoT business and robust EV sales, they say. Profit margins are also likely to improve across business segments. In addition, high operating leverage will likely be a key driver for unlocking its earnings potential since Xiaomi is expected to have lower operating expenses in the first half of the year, they add. HSBC Global Research maintains a buy rating on the stock and raises its target price to HK$73.50 from HK$70.40. Shares are last at HK$51.00. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
May 09, 2025 03:41 ET (07:41 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.