Morgan Stanley: Xiaomi's Q2 Smartphone Shipments Exceed Expectations, Maintains "Overweight" Rating

August 3rd. Morgan Stanley issued a research report stating that Xiaomi Corporation (01810.HK) will announce its second-quarter performance on August 18th. It is currently expected that the smartphone's shipment volume and gross margin have shown a strong performance. The group's quarterly total revenue is expected to exceed 100 billion yuan, with an expected net profit of around 6 billion yuan. According to the latest data from Omdia, Xiaomi's smartphone shipments in the second quarter reached 31.2 million units, 15% higher than the bank's expectations. Benefiting from a historically high average selling price of products and resilient shipment volume, the bank expects the smartphone's gross margin to remain above 8% in the second quarter, mainly reflecting the pass-through effect of cost increases. The bank maintains its "Overweight" rating on Xiaomi with a target price of HK$32. (Jinse)