Xiaomi Girds for Europe as Two Banks Trim Price Targets Ahead of Q3

Xiaomi has stood up a dedicated international business unit for its car division, according to media reports from last Friday, with auto vice-president Yu Liguo set to run the new outfit on top of his existing duties and report to Lei Jun and Lu Weibing. The second half of 2027 is named as the launch window for the overseas push, with Europe first in line.

The move gives the expansion a formal reporting line rather than a slide in a strategy deck. For investors, the question shifts from whether Xiaomi can sell cars abroad to what those sales will contribute to the bottom line — and on that front, the sell side is turning more cautious.

Two Banks, Two Directions

Goldman Sachs reaffirmed its buy rating on Xiaomi on Thursday but cut its target to HK$35 from HK$39, trimming revenue and adjusted net profit forecasts for 2026 through 2028. The analysts pointed to softer expectations for electric-vehicle sales and heavier spending on artificial intelligence.

UOB Kay Hian took a different stance on Monday, keeping its "Hold" rating while nudging its target down to HK$25.90 from HK$26.20. The broker's preview of the third quarter of 2026 pencilled in a 6.7% year-on-year decline in revenue — a figure Goldman also cited — alongside a 57.2% drop in adjusted net profit. That gap between the top-line and bottom-line pressure is what underpins the cautious tone: profit is expected to fall far harder than sales.

Citi, by contrast, reiterated its buy call on Monday and left its target at HK$33.20, pointing to October deliveries as near-term support.

Deliveries Set the Pace

The operating numbers offer the bulls something concrete. Xiaomi said on 1 November that it shipped more than 50,000 vehicles in October — its highest monthly figure of the year, according to Reuters, and the trigger for a positive share reaction the following trading day. It was also the third consecutive month of sequential growth. The company did not disclose a precise delivery total or a model-by-model breakdown.

Coverage of a separate share price gain on the Thursday attributed the move to both a broad recovery in Chinese internet stocks and Xiaomi-specific awards at the World Internet Conference forum, without pinning it to a single exclusive catalyst.

Robots on the Factory Floor

Beyond cars, Xiaomi reported on Tuesday that a humanoid robot had completed an eight-hour shift at a sorting station in its auto plant, responding autonomously to deviations. A embodied foundation model was also put through its paces in an employee apartment.

Whether that research translates into earnings is a longer-dated question. The nearer test comes on 24 November, when the board is scheduled to review the third-quarter 2026 results. That print will show how actual trading compares with the cautious forecasts — and whether the international build-out rests on a profit base solid enough to carry it.