JPMorgan Chase anticipates a substantial increase in Xiaomi Group's first-quarter earnings, forecasting an adjusted net profit of RMB 9.8 billion, marking a 51% year-over-year surge. This expansion is primarily fueled by Xiaomi's AIoT (Artificial Intelligence of Things) and electric vehicle segments. Despite maintaining a "Neutral" rating on Xiaomi and setting a target price of HK$60, the bank highlights the promising future of the IoT sector and expects Xiaomi's electric vehicle deliveries to exceed 350,000 units. However, the smartphone business's gross margin might contract due to escalating component costs, while the growth rate of internet services is projected to lag behind other business segments. JPMorgan Chase considers Xiaomi's current share price to be at a fair level and may revise its rating if the share price dips into the HK$40-43 range or if the electric vehicle business experiences accelerated growth.