Goldman Sachs has issued a research report indicating that as Xiaomi Group-W (HKEX: 01810) enters a period rich with potential catalysts in the coming months, progress in its Smart Electric Vehicle (Smart EV) and Artificial Intelligence (AI) initiatives will be central investor focus areas.

The firm believes the third quarter could present a potential inflection point for the company, both in market sentiment and financial performance. It has reiterated its "Buy" rating on Xiaomi, maintaining a 12-month Hong Kong share price target of HK$40.

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, Goldman anticipates the new series will be positioned as an all-terrain travel SUV with a competitive entry price (e.g., starting around RMB 200,000).

The firm maintains its delivery forecasts for this new series at 110,000 units for 2026 and 240,000 units for 2027.

Furthermore, Xiaomi's strategy for monetizing AI is gradually taking shape, primarily covering consumer-facing system-level AI assistants, enterprise-oriented code and productivity tools, and physical-world applications such as the Internet of Things (AIoT) ecosystem and intelligent driving.

Goldman Sachs projects that Xiaomi's revenue growth, excluding new business segments, will resume year-on-year expansion starting in the third quarter. It also expects sequential improvement in non-IFRS net profit for both the third and fourth quarters.