Citigroup: Xiaomi Group-W (01810) The cost structure of high-end phones is still better than that of low-end phones, maintaining a “buy” rating

The Zhitong Finance App learned that Citi released a research report stating that based on the stable long-term visibility of Xiaomi Group-W (01810), it used the Segment Plus Valuation Method (SOTP) and based on the 2026 forecast to give Xiaomi a target price of HK$50; the rating is “buy.” In Citi's SOTP valuation, the profit valuation multiplier for the core smartphone, IoT, and Internet service businesses was set at 18.9 times, while the smart electric vehicle business was valued at 1.5 times the market-sales ratio.

The Xiaomi Group held a product launch on Christmas to launch the Xiaomi 15 Ultra and AIoT products. According to IDC data, Xiaomi's smartphone shipments in the price range above 800 US dollars achieved a 56% year-on-year increase in the first nine months of 2025, indicating that it has made a significant breakthrough in the ultra-high-end market above 6,000 yuan. Citi believes that as memory prices rise, the cost structure of high-end phones is still superior to low- and middle-end phones. At the same time, Xiaomi also released Buds 6, with a recommended retail price of 699 yuan; the central air conditioner Pro equipped with a twin-turbo fan, with a recommended retail price of 25,999 yuan; the Smart Home Panel 11, with a recommended retail price of 1,299 yuan; Watch 5, with a recommended retail price of 1,999 yuan, and the Mijia diffuse reflection ceiling lamp, with a recommended retail price of 1,899 yuan.