Morgan Stanley: Maintains "Overweight" rating on XIAOMI-W (01810); expects average smartphone selling price to hit a new high in the second quarter.

15:08 03/08/2026

The average selling price of beneficiary products has reached a historical high and the shipment volume shows resilience. The bank expects that smartphone gross margin can be maintained at over 8% in the second quarter, mainly reflecting the pass-through effect of rising costs.

Morgan Stanley released a research report stating that XIAOMI-W (01810) will announce its second-quarter performance for this year on August 18. The current expectation is that smartphone shipments and gross margin performance will be strong, with the group's total quarterly revenue expected to exceed 100 billion RMB, and the recurring net profit anticipated to reach approximately 6 billion RMB. The rating for Xiaomi is maintained at "Overweight" with a target price of HKD 32. Morgan Stanley indicated that, according to the latest data from Omdia, Xiaomi's smartphone shipments for the second quarter reached 31.2 million units, surpassing the firm's expectations by 15%. Benefiting from the historically high average selling price of products and resilient shipment volume, the firm expects the smartphone gross margin to maintain above 8% in the second quarter, mainly reflecting the pass-through effect of rising costs.

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