--- title: "The \"Big Bank\" report lowers Xiaomi's target price to 65.4 yuan, with electric vehicle production capacity and smartphone profit margins dragging down recent stock prices" type: "News" locale: "en" url: "https://longbridge.com/en/news/265256406.md" description: "Huayan has lowered Xiaomi's target price to HKD 65.4, with a rating of \"Buy.\" The report points out that the electric vehicle production capacity and smartphone profit margins have dragged down the stock price, and it is expected that the third-quarter financial report will meet expectations, with the electric vehicle division achieving profitability. Xiaomi's stock price has fallen 22% since early September due to delays in electric vehicle production capacity expansion and market concerns about deliveries. Huayan has lowered its earnings forecasts for 2026 and 2027 by 9% and 7%, respectively. It is expected that the net profit for the third quarter will be approximately RMB 10.1 billion, with revenue of RMB 108.4 billion and a gross profit margin of 22.3%" datetime: "2025-11-11T03:06:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/265256406.md) - [en](https://longbridge.com/en/news/265256406.md) - [zh-HK](https://longbridge.com/zh-HK/news/265256406.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/265256406.md) | [繁體中文](https://longbridge.com/zh-HK/news/265256406.md) # The "Big Bank" report lowers Xiaomi's target price to 65.4 yuan, with electric vehicle production capacity and smartphone profit margins dragging down recent stock prices Huayan published a report stating that Xiaomi Corporation (01810.HK) electric vehicle production capacity and smartphone profit margins are recent factors dragging down its stock price. It is expected that the third-quarter financial report will meet expectations, and the electric vehicle division will achieve profitability. Huayan has lowered Xiaomi's target price from HKD 75.9 to HKD 65.4, maintaining a "Buy" rating. Huayan noted that Xiaomi's stock price has fallen 22% since early September, attributing the poor performance to the company's delay in expanding electric vehicle production capacity and market concerns about the timely delivery of electric vehicles. Additionally, due to rising component material prices, there are concerns about the gross profit margin of its smartphone business and the demand for Internet of Things products. Accordingly, Huayan has lowered its earnings forecasts for Xiaomi Corporation for 2026 and 2027 by 9% and 7%, respectively, to reflect the pressures facing business expansion. Despite recent weakness, Huayan remains confident in Xiaomi's high-end strategy for its core business due to the company's strong execution capabilities and believes that as visibility for the electric vehicle P2 factory becomes clearer in 2026, Xiaomi's stock price has upside potential. Huayan stated that Xiaomi will announce its third-quarter financial report for 2025 in mid-November, expecting its third-quarter net profit to be approximately RMB 10.1 billion, with a year-on-year growth rate slowing down. According to Huayan's estimates, Xiaomi's third-quarter revenue is expected to be RMB 108.4 billion (a year-on-year increase of 17%), with a gross profit margin of 22.3%. It is anticipated that the gross profit margin for the smartphone business will reach 11% in the third quarter; IoT revenue is expected to be RMB 26.6 billion, and electric vehicle shipments in the third quarter are expected to reach 109,000 units, with the gross profit margin slightly declining to 25.2%. The gross profit margin for Xiaomi's smartphone business for the fourth quarter of 2025 has been revised down to 10%. Based on better operating expense control, Huayan has raised its net profit forecast for Xiaomi in 2025 by 7%; however, due to a 4% to 5% downward revision in revenue estimates and a reduction in gross profit margin forecasts by 0.7 and 0.4 percentage points, respectively, Huayan has lowered its earnings forecasts for Xiaomi in 2026 and 2027 by 9% and 7%, respectively ### Related Stocks - [Xiaomi Corporation (XIACY.US)](https://longbridge.com/en/quote/XIACY.US.md) - [XIAOMI-W (01810.HK)](https://longbridge.com/en/quote/01810.HK.md) ## Related News & Research - [Tesla China Demand Faces More Pressure: New Rival Premium EV Hits 15,000 Orders In 34 Minutes](https://longbridge.com/en/news/280672221.md) - [BUZZ-China's Xiaomi loses most in six months; plans $8.7 billion in AI investment](https://longbridge.com/en/news/279879816.md) - [The screen between us: Smartphones and the global fertility crash](https://longbridge.com/en/news/281037016.md) - [Jiangsu Zenergy Profit Soars on Booming EV and Storage Battery Demand](https://longbridge.com/en/news/280991863.md) - [Gas prices are skyrocketing from the Iran war. Is this the electric car’s time to shine? What to know before investing in one](https://longbridge.com/en/news/281021862.md)