Morgan Stanley: Xiaomi's profit last quarter exceeded expectations and the positive trend is expected to continue this year

2025-03-19 11:35:14

Morgan Stanley published a research report stating that Xiaomi Group's fourth-quarter earnings in 2024 significantly exceeded expectations. Revenue growth and improved profit margins drove gross profit 12% higher than the bank's forecast, and cost synergies made operating profit exceed expectations by about 87%. Looking forward to more positive catalysts in the coming months, Morgan Stanley believes that Xiaomi's positive trend in 2025 will be sustainable. It also pointed out that based on the success of Xiaomi SU7 Ultra, the group has begun its high-end journey, and the average selling price of future products is expected to increase, which will help promote the penetration rate of its high-end smartphones and the growth momentum of artificial intelligence IoT products. Morgan Stanley gave Xiaomi an "overweight" rating with a target price of HK$45.

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