By Jiahui Huang

Xiaomi is scheduled to report results for the fourth quarter and full year on Tuesday. Here is what you need to know:

NET PROFIT: The Beijing-based company is expected to post full-year net profit of 19.97 billion yuan, equivalent to $2.76 billion, according to a poll of analysts by Visible Alpha, up 14% from 2023. Fourth-quarter net profit was likely 5.25 billion yuan, according to Visible Alpha, up from 4.72 billion yuan a year earlier.

REVENUE: Quarterly revenue is projected to have risen 41% to 103.30 billion yuan, according to the Visible Alpha poll.

Shares in Xiaomi have been boosted by its strong performance across sectors, the lower-than-expected price tag of its SU7 Ultra battery-electric car and overall positive sentiment on Chinese tech equities after local startup DeepSeek launched a cheaper and more efficient AI model this year. Its Hong Kong-listed stock rose 53% in the fourth quarter and has gained 62% year to date.

WHAT TO WATCH:

--EV: The EV segment likely remained on track in the fourth quarter, with a gross profit margin of around 20% and a solid order backlog, Citi analysts wrote in a recent note. Investors will want to see the segment's progress toward becoming profitable and plans for new models.

--SMARTPHONE: Xiaomi will likely report another market-beating quarter, thanks to a favorable smartphone mix and government subsidies for consumers who purchase new devices, Citi analysts said. Investors will closely watch the company's revenue and gross profit margin from the smartphone segment, given it is the primary revenue driver.

--INTERNET OF THINGS: The company is expected to benefit further from Beijing's expanded trade-in program this year. For the fourth quarter, Citi said the Internet-of-Things segment, which includes products such as air purifiers, e-scooters, smart televisions and others, likely generated 29.6 billion yuan in revenue, thanks to the government subsidy program.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

March 17, 2025 05:48 ET (09:48 GMT)

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