XIAOMI(HK:01810) Ge Long Hui·2025-08-13 07:48Core Viewpoint - The report from Zhongyin International indicates a slight downward adjustment in Xiaomi Group's Q2 revenue forecast from 123 billion to 114 billion yuan, reflecting various factors impacting the company's performance [1] Revenue and Profit Forecast - The adjusted net profit forecast for Xiaomi is lowered from 10.9 billion to 10.4 billion yuan, primarily due to an increase in low-end product sales and rising storage costs, which are expected to slightly decrease the gross margin [1] - Xiaomi's smartphone shipments are projected at 42.5 million units, showing a minor quarter-on-quarter increase [1] Market Conditions and Innovations - The report notes that certain provinces in China have suspended subsidies for mobile phones and IoT products in Q2, impacting sales [1] - The company anticipates further reduction in losses from its smart electric vehicle and AI segments in Q2, with expectations of profitability in the second half of the year [1] Production and Sales Projections - Due to a slight delay in factory production timelines, the sales forecast for 2025 has been adjusted down to 400,000 units, while the 2026 forecast of 700,000 units has potential for upward revision [1] Valuation and Investment Rating - Following a 16% pullback from recent highs, Xiaomi's current valuation is considered attractive, maintaining a positive outlook on the company's medium-term sustainable growth [1] - The investment rating remains "Buy," with a target price adjusted from 75.25 HKD to 74.4 HKD based on operational changes [1]