Morgan Stanley: Xiaomi's Q2 Smartphone Shipments Beat Expectations, Maintains "Overweight" Rating

Odaily News, Morgan Stanley released a research report stating that Xiaomi Group (01810.HK) is scheduled to announce its Q2 results on August 18. The firm currently expects strong smartphone shipments and gross margins, projecting quarterly total revenue to exceed RMB 100 billion, with recurring net profit expected to reach approximately RMB 6 billion. According to the latest data from Omdia, Xiaomi's Q2 smartphone shipments reached 31.2 million units, 15% higher than the firm's expectations. Benefiting from record-high average selling prices and resilient shipment volumes, the firm expects smartphone gross margins to maintain above 8% in Q2, primarily reflecting the pass-through effect of rising costs. The firm maintains its "Overweight" rating on Xiaomi with a target price of HKD 32. (Jin Shi)