CICC: Maintaining a "Outperform" rating on Xiaomi Corporation with a target price of HKD 70.0.

CICC releases research report stating that due to the sluggish demand for Xiaomi Group-W phones and the increase in raw material prices, the adjusted net profit for 2025 is lowered by 5.9% to 46.139 billion yuan; maintaining profit forecast for 2026 unchanged. The current stock price corresponds to a P/E ratio of 27.0 times/18.5 times. Maintaining an outperform industry rating, switching valuation center to 2026 based on the SOTP valuation method, maintaining a target price of 70.0 Hong Kong dollars, corresponding to a P/E ratio of 36.1 times/24.7 times, with a 33.6% upside potential.