CLSA expects XIAOMI-W to report weak results for 1Q26, with total revenue and adjusted EBIT forecasted to decline by 10.7% and 41% year-on-year, respectively. This is attributed to rising memory costs and a reduction in low-end smartphone models, leading to a significant drop in shipments. Despite a potential increase in average selling price, gross margins are expected to remain low. The broker has lowered its profit forecasts for 2026 and 2027 and adjusted the target price downwards, while maintaining an Outperform rating.
