0741 GMT - Xiaomi is likely to report another round of solid earnings in 1Q, thanks to increased profitability in the electric-vehicle and Internet-of-Things sectors, HSBC Global Research analysts write in a note. The bank expects a "beat and raise" set of numbers with net profit hitting 10 billion yuan, more than double from a year earlier, thanks to around 50% on-year revenue growth in its IoT business and robust EV sales, they say. Profit margins are also likely to improve across business segments. In addition, high operating leverage will likely be a key driver for unlocking its earnings potential since Xiaomi is expected to have lower operating expenses in the first half of the year, they add. HSBC Global Research maintains a buy rating on the stock and raises its target price to HK$73.50 from HK$70.40. Shares are last at HK$51.00. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

May 09, 2025 03:41 ET (07:41 GMT)

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