Understanding the Market | Xiaomi Corporation-W briefly fell over 4% in early trading, Citigroup expects its third-quarter performance may be slightly below expectations

Xiaomi Corporation-W fell more than 4% in early trading, hitting a low of HKD 43.88, the lowest since April this year. Citigroup expects its third-quarter performance to be slightly below expectations, mainly due to lower-than-expected smartphone gross margins and Internet of Things revenue. It is expected that the adjusted net profit will reach RMB 10.2 billion, affected by smartphone gross margins and Internet of Things revenue. Huatai Securities believes that Xiaomi's automotive business may turn profitable in the third quarter, with the smartphone business maintaining a gross margin of around 11%, and the gross margin of the Internet of Things business expected to remain strong