According to a report published by Morgan Stanley, the Xiaomi Group's adjusted net profit for the next quarter was 6.219 billion yuan, up 2% from the previous quarter. The smartphone business's revenue and gross margin were significantly better than the forecast. Management said that the increase in memory prices will normalize in the second half of the year, which is expected to reduce the negative impact on smartphone gross margins. The bank expects smartphone gross margins to remain resilient in the second half of the year, which is a positive surprise and a catalyst for revaluation. Damo maintains Xiaomi's “gain” rating, with a target price of HK$32.

According to a report published by Morgan Stanley, the Xiaomi Group's adjusted net profit for the next quarter was 6.219 billion yuan, up 2% from the previous quarter. The smartphone business's revenue and gross margin were significantly better than the forecast. Management said that the increase in memory prices will normalize in the second half of the year, which is expected to reduce the negative impact on smartphone gross margins. The bank expects smartphone gross margins to remain resilient in the second half of the year, which is a positive surprise and a catalyst for revaluation. Damo maintains Xiaomi's “gain” rating, with a target price of HK$32.