Core Viewpoint - Xiaomi Group's stock price has recently declined, reaching a two-month low, primarily due to a downward revision in smartphone shipment forecasts and concerns over market performance in India [2][5]. Group 1: Market Performance - Xiaomi's stock fell by 4.35% to HKD 51.65, with a trading volume of 221 million shares and a market capitalization of HKD 1.34 trillion [2][3]. - The global smartphone market saw a 1% decline year-on-year in Q2 2025, marking the first drop in six consecutive quarters, while Xiaomi maintained a stable performance with a 15% market share, ranking third globally [5]. Group 2: Financial Forecasts - Daiwa has revised its forecast for Xiaomi's Q2 2025 total revenue to RMB 112.6 billion, slightly below market expectations, while the adjusted net profit is projected at RMB 10.2 billion, in line with market expectations [5]. - The forecast for Xiaomi's earnings per share for 2025 to 2027 has been reduced by 2% to 7%, and the target price has been lowered from HKD 78 to HKD 72, maintaining a "Buy" rating [6]. Group 3: Electric Vehicle Business - Xiaomi's electric vehicle deliveries are expected to reach 82,000 units in Q2 2025, with an average selling price of RMB 242,000 and an improved gross margin of 25%, indicating a reduction in losses from the EV business [5]. - The second phase of Xiaomi's automotive factory is expected to commence production by the end of September, with projected sales of 400,000 to 500,000 vehicles in 2025 and potential sales exceeding 800,000 in 2026 [6]. Group 4: Analyst Ratings - Nomura has raised Xiaomi's target price by 79% to HKD 61 based on SOTP valuation but downgraded its rating from "Buy" to "Neutral" due to anticipated challenges in smartphone shipments and high market expectations for the EV business [7].