HSBC: Expects strong profit growth for Xiaomi Group in the first quarter, maintains target price of HK$60.

Wisdom Finance APP learned that Morgan Stanley released a research report stating that it is expected that Xiaomi Group-W (01810.HK) will experience strong profit growth in the first quarter of this year, mainly driven by the strong momentum in AIoT (Artificial Intelligence of Things) and electric vehicles, as well as strict control of operating expenses. It is estimated that the adjusted net profit for the period will increase by 51% to 9.8 billion RMB year-on-year. The bank slightly raised its forecast to reflect better-than-expected first quarter performance and the dilution effect of the earlier rights issue, maintaining a "neutral" rating with a target price of 60 Hong Kong dollars.