Zhi Tong Cai Jing·2025-08-07 02:32Core Viewpoint - Xiaomi Group's stock has dropped over 4%, currently trading at 51.6 HKD, with a trading volume of 7.465 billion HKD. The decline comes despite an increase in electric vehicle deliveries, which exceeded 30,000 units in July due to enhanced production capacity [1]. Group 1: Electric Vehicle Performance - Xiaomi's electric vehicle deliveries in July surpassed 30,000 units, attributed to increased production capacity [1]. - The second phase of Xiaomi's Beijing factory is set to commence production, with new capacity being planned [1]. - Projections indicate that Xiaomi's electric vehicle sales could reach between 400,000 to 500,000 units by 2025, and potentially exceed 800,000 units by 2026 [1]. Group 2: Market Analysis and Forecasts - Nomura has raised Xiaomi Group's target price by 79% to 61 HKD based on SOTP valuation, but downgraded its rating from "Buy" to "Neutral" due to limited upside potential [1]. - Future challenges for the group include lower-than-expected smartphone shipments, high sales base for IoT products since the second half of 2024, and elevated market expectations for the electric vehicle segment [1]. - Jefferies noted a significant slowdown in the average selling price growth of Xiaomi's flagship smartphones in Q2 compared to Q1, indicating potential pressure on the company's Q2 performance due to weak smartphone demand and high inventory levels [1].