Macquarie analyst Cherry Ma noted in a report that Xiaomi is expected to maintain revenue growth in 2026, driven by revenue from its electric vehicle business, which is projected to double, and steady growth in its Internet of Things (IoT) business. Ma lowered her forecast for smartphone sales, projecting a 13% decline in 2026, but higher average selling prices should offset rising component costs, thereby driving revenue in this segment. Supported by the launch of new models and the strong performance of existing models, EV sales are expected to exceed the company’s targets. Growth in the IoT business may slow, though expansion into overseas markets and the shift toward higher-end products should partially offset weak domestic demand for home appliances. Macquarie lowered its 2026 net profit forecast for Xiaomi by 0.5% and slightly adjusted its target price from HK$54.20 to HK$54.00. The stock previously closed at HK$38.02.