Core Viewpoint - Citigroup has set a target price of HKD 50 for Xiaomi Group-W (01810) based on a solid long-term visibility and a sum-of-the-parts (SOTP) valuation method, rating it as "Buy" [1] Group 1: Valuation and Target Price - The SOTP valuation assigns an earnings multiple of 18.9x for core smartphone, IoT, and internet services, while the smart electric vehicle business is valued at a 1.5x sales multiple [1] - The target price is based on projections for 2026 [1] Group 2: Product Launch and Market Performance - Xiaomi held a product launch event during Christmas, introducing the Xiaomi 15 Ultra and AIoT products [1] - According to IDC data, the shipment volume of smartphones priced above USD 800 saw a 56% year-on-year growth in the first nine months of 2025, indicating significant breakthroughs in the ultra-high-end market above RMB 6,000 [1] Group 3: Cost Structure and Product Pricing - Citigroup believes that with rising memory prices, the cost structure for high-end smartphones remains superior to that of mid-to-low-end smartphones [1] - Xiaomi also launched several products with suggested retail prices: Buds6 at RMB 699, central air conditioning Pro at RMB 25,999, smart home panel 11 at RMB 1,299, Watch5 at RMB 1,999, and the Mijia diffuse ceiling light at RMB 1,899 [1]

Core Viewpoint - Citi's report indicates that Xiaomi has recently launched the Xiaomi 15 Ultra and AIoT products, highlighting significant growth in the high-end smartphone market [1] Group 1: Product Launch and Market Performance - Xiaomi's smartphone shipments priced above $800 experienced a 56% year-on-year growth in the first nine months of 2025, demonstrating a notable breakthrough in the ultra-high-end market above 6000 yuan [1] - The introduction of the Xiaomi 15 Ultra and AIoT products is expected to further strengthen Xiaomi's position in the high-end segment [1] Group 2: Financial Outlook and Valuation - Citi believes that with rising memory prices, the cost structure of high-end smartphones remains superior to that of mid-range and low-end devices [1] - Based on solid long-term visibility, Citi employs a sum-of-the-parts (SOTP) valuation method and sets a target price of 50 HKD for Xiaomi, with a "Buy" rating [1]

Group 1 - Goldman Sachs maintains a "Buy" rating on New Oriental-S (09901) and raises the target price to HKD 42 based on the sum-of-the-parts valuation method [1] - The firm expects investor confidence to gradually improve if the company achieves its profit margin expansion guidance for the May quarter, with the valuation multiple for New Oriental's core business projected to increase from the current 1x 12-month forward P/E [1] - Management emphasized cost control and operational efficiency during the February quarter earnings call, leading to an upward revision of non-GAAP operating profit expectations for FY25-27 by 7-14% [1] Group 2 - New Oriental's February quarter revenue and EPS fell short of expectations primarily due to a significant decline in revenue from Dongfang Zhenxuan (01797), which dropped by 59% year-on-year [2] - The firm has lowered its FY25 expectations for Dongfang Zhenxuan and adjusted the target price based on P/E to HKD 7.8 from HKD 8.2, but anticipates that Dongfang Zhenxuan will start contributing positively to group profits from the August quarter [2]