[ET Net News Agency, 20 July 2020] Morgan Stanley lifted its target price for Xiaomi
Corporation (01810) to HK$18 from HK$14 and maintained its "overweight" rating.
The research house estimated Xiaomi's 2Q revenue will decrease 7% to Rmb48.2bn, while
net profit could see a larger decline of 28% to Rmb2.6bn due to lower margin.
Morgan sees Xiaomi's 2Q largely affected by overseas markets, as for some markets
(especially India), more than two months of revenue were lost due to the lockdown as a
result of COVID-19 but opex remains.
Morgan said its checks suggest that Tencent's gaming grossing continued to grow at 60%
in 2Q; it thinks this should correlate highly with Xiaomi's gaming revenue since the
latter doesn't book deferred revenue.
It tweaked its 2020 earnings by -5%, mainly reflecting lower GPM for Xiaomi Finance,
which could hold greater uncertainty in the current environment. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
01810 XIAOMI-W
Nominal 
17.360 +0.760 (+4.578%) Research Report
20/07/2020 16:18
{I-bank focus}Morgan lifts Xiaomi Corp (01810) to HK$18
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |