0915 GMT - Xiaomi will likely report softer-than-expected smartphone gross profit margin and Internet-of-Things revenue for the three months ended Dec. 31, Daiwa analysts write in a note. The smartphone segment's gross margin was likely to have been hurt by memory-cost inflation, they say, forecasting a drop to 8% compared with 11% in 3Q. Given that profitability is Xiaomi's priority, Daiwa expects it to report a plunge in low-end phone shipments and about 20% decline in total shipments. The company's 4Q IoT revenue is likely to have dropped 30% to CNY25 billion, with the extent of national subsidy normalization and competition in large home appliances likely to have been stronger than expected, Daiwa says. The brokerage maintains its buy rating and cuts its target price to HK$45.00 from HK$55.00. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

March 02, 2026 04:15 ET (09:15 GMT)

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