China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Xiaomi (1810 HK, SELL, TP HK$8.2) Earnings Review]: Good Cost Control Could Be Transitory

[Xiaomi (1810 HK) Company Update]: JD Funds Distributors, but No Clear Benefit for Xiaomi

[Xiaomi Inc. (1810 HK) Target Price Change]: Picking Both Earnings and Scale, but Obtaining Neither

Xiaomi (1810 HK) – 4Q22 better than feared; All eyes on profitability recovery in 2023

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Per Tmall tracking data, in 1Q23 we expect Xiaomi’s (1) phone unit sales fell 18% YoY to 31.7mn (2) phone ASP rose 2% YoY,  (3) IoT revenue fell 10% YoY</li>
<li>We estimate 1Q23/FY23 operating profit is (16%)/(13%) vs. the street. We expect Xiaomi to spend more on OPEX to support its EV investment; </li>
<li>We maintain SELL and HK$8.2 TP given rising costs despite lack of growth.</li>
</ul>


Per Tmall tracking data, in 1Q23 we expect Xiaomi’s (1) phone unit sales fell 18% YoY to 31.7mn (2) phone ASP rose 2% YoY,  (3) IoT revenue fell 10% YoY
We estimate 1Q23/FY23 operating profit is (16%)/(13%) vs. the street. We expect Xiaomi to spend more on OPEX to support its EV investment; 
We maintain SELL and HK$8.2 TP given rising costs despite lack of growth.


[샤오미(1810 홍콩달러, 매도, TP HK$8.2) 회사 업데이트]: 출발선에서 EV 비용 가속화