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HSBC maintains a "buy" rating on Xiaomi, with a target price raised from HKD 23.6 to HKD 25.3. The bank expects Xiaomi's delivery volume to increase month by month in the second half of the year, raising its forecast for electric vehicle shipments in the next two years by 8% and 1% to 108,000 and 243,000 units, respectively. It is anticipated that there will be greater room for growth in future shipments under economies of scale
HSBC: Maintains "Buy" rating on Xiaomi, with target price raised from HKD 23.6 to HKD 25.3
The report indicates that Xiaomi Group's first-quarter performance was robust, with a year-on-year growth of 101% in recurring net profit, exceeding the bank's forecast by 16%. The IoT business became a new growth engine, with revenue growing by 21% year-on-year. The gross profit margin of the business segment reached a record high of 19.9%, up 6% quarterly, which was a big surprise.
As of mid-May, Xiaomi has delivered approximately 10,000 SU7 electric vehicles, with production acceleration support. The management has raised the year-end delivery target from 100,000 to 120,000 vehicles.
HSBC expects Xiaomi's delivery volume to increase month by month in the second half of the year. The forecast for the next two years' electric vehicle shipments has been raised by 8% and 1% to 108,000 and 243,000 vehicles, respectively. It is expected that under economies of scale, future shipments will have greater room for growth. HSBC research reaffirms its optimism that Xiaomi's smartphone shipments this year could reach around 165 million units.
Bank of America Securities: Reiterates "Buy" rating on Bilibili-W, with target price raised from HKD 131 to HKD 140
The report states that the company's advertising revenue growth is good, with a positive trend in gross profit margin, and the first-quarter performance this year basically met expectations. The bank predicts that Bilibili's performance growth trend in the second quarter and full year of the 2024 fiscal year will be on track.
The forecasts are mainly based on Bilibili launching more new games during the "618 promotion" and summer vacation periods, with continued growth momentum in advertising business. The turnaround in the game business will begin in the second quarter of this year. With improvements in advertising and game business, the profit and loss balance is expected to be on track as scheduled.
The bank believes that Bilibili's transformation towards a mix of high-profit advertising and game businesses, coupled with control over operating expenses, may drive the company's long-term profit margin by over 10%.
Orient Securities: Maintains "Buy" rating on JD.com-SW, with target price of HKD 131.1
The report mentions that JD.com's gross profit margin improved in Q1 2024. The gross profit margin for Q1 2024 was 15.3% (+0.47pct), with fulfillment/sales/research and development/management expense ratios at 6.5%/3.6%/1.6%/0.76% respectively, year-on-year changes of +0.14/+0.26/-0.17/-0.27pct. Sales expenses increased due to promotional activities such as sponsoring the Spring Festival Gala, while fulfillment expenses increased due to the impact of the 59 free shipping launched at the end of August 23, which is expected to be eliminated by Q3. There is room for optimization in expenses. Additionally, the company values shareholder returns.