Xiaomi’s Strong Q1 2025 Performance Justifies Buy Rating and Raised Target Price

Johnny Yum, an analyst from UOB Kay Hian, maintained the Buy rating on Xiaomi (XIACF – Research Report). The associated price target was raised to HK$69.90.

Johnny Yum has given his Buy rating due to a combination of factors including Xiaomi’s impressive financial performance in the first quarter of 2025. The company reported a net profit of Rmb10.7 billion, which surpassed both UOB Kay Hian’s and consensus estimates. This was largely driven by robust sales in the smartphone and IoT segments, with the latter achieving a historically high margin of 25.2% due to an improved product mix.
Moreover, Xiaomi’s overall revenue for the quarter reached Rmb111 billion, marking a significant year-over-year increase of 47.4%. The company’s blended gross margin also hit a record high of 22.8%, exceeding expectations. The strong performance across various segments, including the promising growth in the EV business, supports the positive outlook and justifies the raised target price to HK$69.90.

In another report released today, CMB International Securities also maintained a Buy rating on the stock with a HK$65.91 price target.