Group 1 - HSBC Global Research has raised its target price for Xiaomi Group (01810.HK) by 4.2%, from HKD 73.5 to HKD 76.6, indicating a potential upside of approximately 49% [1] - The upward revision in net profit forecasts for Xiaomi Group for 2025-2027 is by 6% annually, driven by a more optimistic outlook on the company's Internet of Things (IoT) revenue [1] - The report highlights that Xiaomi's IoT and electric vehicle (EV) gross margins are expected to continue to improve, with the first quarter earnings exceeding expectations [1] Group 2 - HSBC anticipates that the Yu7 electric vehicle model could become a new profit growth driver for Xiaomi [1] - The company is expected to reach a critical point in its high-end product strategy and in-house chip development, which will enhance smartphone profit margins [1] - Starting from 2026, Xiaomi is projected to expand the deployment of its XRing O1 SoC to mid-range smartphone models, significantly reducing unit costs of chipsets and overall material costs [1]