CCB International has issued a research report highlighting Xiaomi Group's robust first-quarter performance, which met expectations with a 47% year-on-year increase in annual revenue. This growth was fueled by across-the-board business expansion, particularly the outstanding performance of the IoT division. Looking ahead, the bank forecasts Xiaomi's smartphone shipments to surge by 5% in 2025 and 8% in 2026, while the IoT business is projected to grow by 30% and 20%, respectively. Internet services are also expected to see growth rates of 7% and 6% over the same period. In the electric vehicle sector, Xiaomi is anticipated to ship 350,000 units in 2025 and 440,000 units in 2026. Notably, the report emphasizes that Xiaomi stands to significantly benefit from government subsidies for smartphones and electronic products. With the increasing market penetration of high-end products, Xiaomi's gross profit margin is expected to remain robust. Consequently, CCB International has upwardly revised Xiaomi's earnings forecasts by 8% for 2025, 5% for 2026, and 9% for 2027. The bank has also increased the target price from HK$65 to HK$67 and maintains an outperform rating on Xiaomi, advising investors to keep an eye on the launch of its new YU7 model.