XIAOMI(HK:01810) Ge Long Hui·2025-08-11 03:51Core Viewpoint - UBS reports that Xiaomi's smartphone sales in Q2 reached 41 million units, reflecting a year-on-year increase of 0.5% and a quarter-on-quarter rise of 1.5% [1] Smartphone Sales - In the Chinese market, driven by subsidies and the 618 shopping festival, sales grew by 8% year-on-year [1] - The total expected smartphone sales for Xiaomi in 2023 is projected to reach 175 million units [1] Profit Margins - Due to the impact of the 618 promotional activities leading to a decrease in average selling price, along with the expansion of contributions from emerging markets offsetting the ongoing high-end market contributions, the Q2 smartphone gross margin is expected to remain flat at approximately 11.6% quarter-on-quarter [1] AIoT Business - The AIoT business is anticipated to maintain rapid growth in Q2, with sales forecasted at 36.6 billion yuan and 140.6 billion yuan for Q2 and the full year respectively, representing year-on-year growth of 37% and 35% [1] Earnings Forecast - The group has adjusted its Q2 and full-year earnings estimates downwards by 10.4% and 5.5% respectively [1] - The target price has been revised from 62 HKD to 60 HKD, while maintaining a "Neutral" rating [1]