XIAOMI(HK:01810) Xin Lang Cai Jing·2025-08-07 04:04Group 1 - Jefferies report indicates that Xiaomi's Q2 performance may fall short of expectations due to weak smartphone demand, lowering the target price from HKD 73 to HKD 69.85 while maintaining a "Buy" rating [1] - Third-party data and industry surveys suggest a weak global smartphone demand in Q2 2025, with high inventory levels for Android devices, particularly in emerging markets like Southeast Asia and India [1] - Xiaomi's smartphone revenue forecast for Q2 2025 has been reduced by approximately 5%, and gross margin forecast has been lowered by 0.5% to 11.8%, reflecting a more pessimistic view on global smartphone demand and competitive landscape [1] Group 2 - Xiaomi's electric vehicle (EV) deliveries are progressing well, with gross margins improving due to a better product mix, maintaining a delivery volume of 81,000 units for Q2, and gross margin expected to rise to 23.9% due to an increased share of SU7 Ultra model deliveries [1] - Management has indicated that the second EV factory has not yet commenced commercial production, but once operational, it will significantly enhance capacity [1] - Investor sentiment towards the Chinese automotive industry has become more cautious due to lower-than-expected demand for new models from other local brands, yet the waiting time for SU7 and YU7 models remains long, bolstering confidence in long-term forecasts [1]