Under the banner of "Big Banks," the forecast for Xiaomi's adjusted net profit has been downgraded, and the target price has been lowered to 43 yuan

Citi released a report stating that it has lowered Xiaomi's (01810.HK) adjusted net profit forecasts for 2025, 2026, and 2027 by 3%, 21%, and 17% respectively, mainly due to downward adjustments in smartphone and electric vehicle shipments, as well as expectations of lower gross margins for both. The target price has been reduced from HKD 50 to HKD 43, with a rating of "Buy."

The bank has lowered its gross margin forecast for Xiaomi in 2026 from 21.8% to 21.2%, and its gross margin forecast for 2027 from 23% to 22.8%.

The bank still expects the company to be in a high R&D investment cycle from 2026 to 2027, primarily targeting emerging technologies such as artificial intelligence, chips, and robotics. In the short term, the smartphone business still faces challenges, but it believes that the Internet of Things business may achieve a 10% growth in 2026 driven by overseas demand. As for the electric vehicle market, sentiment is expected to improve with the launch of new models and an increase in orders, and it is anticipated that growth in electric vehicles and overseas Internet of Things business will drive performance in 2027