MORGAN STANLEY says Xiaomi Group (01810.HK) will report Q2 results on Aug. 18
and expects quarterly revenue to exceed 100 bln yuan and recurring net profit of
about 6 bln yuan. Citing Omdia, MS notes Q2 smartphone shipments of 31.2 mln
units, ~15% above its estimate. With average selling price at a record high and
Resilient volumes, MS expects smartphone gross margin to stay above 8% in Q2,
reflecting pass-through of higher costs. The firm reiterates an Overweight
rating and a HKD32 target price.
