Goldman Sachs has released a research report stating that as Xiaomi Group-W (HKG: 01810) enters a period rich with catalysts over the coming months, progress in its Smart Electric Vehicle (Smart EV) and Artificial Intelligence (AI) initiatives will become the central focus for investors.

The bank believes the third quarter could present a potential inflection point, both in market sentiment and financial performance, for the company. It maintains a 'Buy' rating on Xiaomi, with its 12-month Hong Kong stock price target held steady at 40 HKD.

Valuation and Business Outlook

The report notes that Xiaomi's current valuation appears to have largely bottomed out. In the Smart EV sector, while the market awaits detailed specifications for the third model series—a large range-extender SUV potentially named "SKYNOMAD"—expected to be disclosed in Ministry of Industry and Information Technology filing documents as early as mid-July, the bank anticipates the new series will be positioned as an all-terrain travel SUV with a competitive entry price (potentially starting around 200,000 RMB).

Goldman Sachs maintains its delivery forecasts for this new series at 110,000 units for 2026 and 240,000 units for 2027. Furthermore, Xiaomi's AI monetization strategy is gradually taking shape, primarily encompassing consumer-facing system-level AI assistants, enterprise-oriented coding and productivity tools, and physical-world applications such as the AIoT ecosystem and smart driving.

Financial Projections

Goldman Sachs expects that Xiaomi's revenue growth, excluding new business segments, will resume year-on-year expansion starting in the third quarter. Additionally, the company's Non-IFRS net profit is projected to show sequential improvement in both the third and fourth quarters.