Credit Suisse: Raises the target price of Xiaomi Corporation-W to HKD 69.5, with AIoT bringing more profit upside potential

Credit Suisse released a research report stating that it expects Xiaomi Corporation-W's performance in the first quarter of 2025 to exceed expectations, mainly due to its artificial intelligence of things (AIoT) business. Additionally, in the medium term, the home appliance business could potentially bring in RMB 100 billion in revenue; the firm raised its target price by 10%, from HKD 63.25 to HKD 69.5, and assigned a "Buy" rating. The report indicated that it expects the sales of Xiaomi's electric vehicle SU7 to increase by 9% quarter-on-quarter to approximately 74,000 units in the first quarter of this year, with the average selling price remaining stable. The firm also noted that while the market is primarily focused on Xiaomi's electric vehicle business, it believes that the group's AIoT is another undervalued business that has the potential to bring positive surprises to short-term profits; Xiaomi's advantages in design, cost, and performance, as well as its online and offline marketing expertise, are expected to drive rapid market share growth