In "The Big Banks," Citigroup downgraded Xiaomi's rating to "Outperform" with a target price lowered to 45 yuan

Citi published a research report indicating that Xiaomi (01810.HK) was affected by the reduction of "national subsidies" in the last quarter, expecting total revenue to grow by 5.1% year-on-year to RMB 114.5 billion; due to a decline in smartphone and Internet of Things sales of 13% and 19% respectively, and a high base period, it is anticipated that adjusted net profit will drop by 35% to RMB 5.5 billion.

The bank expects Xiaomi to face more severe macro challenges in the first half of this year, including weak demand in China and conflicts in the Middle East. The bank has lowered its adjusted net profit forecasts for the company for the fiscal years 2025 and 2026 by 10% and 27% respectively, reducing the target price from RMB 60 to RMB 45, and downgrading the rating from "high conviction outperform" to "outperform."