XIAOMI(HK:01810) Cai Jing Wang·2025-08-13 15:28Core 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, and a reduction in adjusted net profit forecast from 10.9 billion to 10.4 billion yuan, primarily due to increased low-end product sales and rising storage costs, along with the suspension of mobile and IoT subsidies in certain domestic provinces during Q2 [1] Group 1 - Xiaomi's smartphone shipments are expected to reach 42.5 million units, showing a slight quarter-on-quarter increase, but the gross margin is anticipated to decline slightly due to a higher proportion of low-end products and increased storage costs [1] - The company is expected to further reduce losses in its smart electric vehicle and AI innovation business segments in Q2, with a potential for profitability in the second half of the year [1] - The forecast for 2025 sales has been slightly adjusted down to 400,000 units due to a delay in the production timeline of the second-phase factory, while the 2026 forecast of 700,000 units has potential for upward adjustment [1] Group 2 - Following a 16% pullback from recent highs, Xiaomi's current valuation is considered highly attractive, and the medium-term growth outlook for the company remains unchanged [1] - The rating for Xiaomi is maintained as "Buy," with a slight adjustment in the target price from 75.25 HKD to 74.4 HKD based on operational changes [1]