BOCI has issued a research report highlighting the compelling valuation of Xiaomi Group-W, maintaining its 'Buy' recommendation while adjusting the target price to HK$74.4. Adjustments to Xiaomi's revenue and net profit forecasts for the second quarter of 2025 reflect shifts in the smartphone shipment landscape and the suspension of certain domestic subsidy programs. Despite these revisions, the report anticipates that Xiaomi's innovative ventures, including smart electric vehicles and AI initiatives, will experience reduced losses in Q2 and potentially achieve profitability in the second half of the year. Nevertheless, the anticipated electric vehicle sales forecast for 2025 has been scaled down to 400,000 units, influenced by the ongoing second-phase factory commissioning. Amid capacity constraints and investments in new endeavors, the valuation of Xiaomi's electric vehicle business continues to be assessed using a price-to-sales multiple, with the 2026 per-share valuation holding steady at HK$30.4.