Goldman Sachs released a research report stating that it reaffirms the &#34;Buy&#34; rating for XIAOMI-W (01810) with a target price of HKD 38. The government launched a subsidy policy yesterday, which may lead to an increase in smartphone sales, but competition in the RMB 4,000-6,000 segment will intensify.
Looking ahead to the first quarter of 2025, Goldman Sachs believes that the national subsidy policy may increase Xiaomi's shipments in China. The firm believes that the gross profit contribution from Xiaomi's smartphones will decrease over time, mainly due to the structural growth of Internet of Things (IoT) and Internet revenues, especially the rapid growth of IoT revenue and the increase in gross profit margins, which should provide higher sustainability for long-term growth and profitability

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Looking ahead to the first quarter of 2025, Goldman Sachs believes that national subsidy policies may increase XIAOMI's shipments in China

- Goldman Sachs has reiterated its "Buy" rating for Xiaomi Group-W (01810) with a target price of 38 HKD.  
- The recent government subsidy policy is expected to boost smartphone sales, although competition in the 4000-6000 RMB segment will intensify.  
- Looking ahead to Q1 2025, the subsidy may increase Xiaomi's shipments in China, while the contribution of smartphone gross profit is anticipated to decline due to structural growth in IoT and internet revenues.

Goldman Sachs: Reiterates "Buy" rating on XIAOMI-W (01810) with a target price of HKD 38