Bank of China International: Maintains "Buy" rating on Xiaomi Corporation-W as industry favorite, target price lowered to HKD 74.4

Bank of China International maintains a "Buy" rating on Xiaomi Corporation-W, with a target price adjusted to HKD 74.4. It is expected that Xiaomi's smart electric vehicles and AI-related innovative businesses will reduce losses in the second quarter and are likely to turn profitable in the second half of the year. The revenue forecast for Xiaomi in the second quarter of 2025 has been revised down from RMB 123 billion to RMB 114 billion, and the net profit forecast has been adjusted from RMB 10.9 billion to RMB 10.4 billion. Although the electric vehicle business is expected to be profitable in the second half of 2025, the valuation method still uses the price-to-sales (P/S) multiple