By Jiahui Huang

Xiaomi is scheduled to report results for the third quarter on Monday. Here is what you need to know:

NET PROFIT: The Chinese smartphone specialist is expected to post net profit of 4.47 billion yuan, equivalent to $618.3 million, according a poll of analysts by Visible Alpha, down 8.2% from a year earlier.

REVENUE: Xiaomi is likely to report total revenue of 89.66 billion yuan, according to Visible Alpha, up from 70.89 billion yuan a year ago.

The stronger-than-expected sales performance of Xiaomi's electric vehicles has pushed up its stock price. Its Hong Kong-listed shares, which rose 37% in the third quarter, have gained around 80% this year, outperforming the benchmark Hang Seng Index's roughly 15% gain.

WHAT TO WATCH:

--EV: Xiaomi's EV segment has witnessed robust growth since it launched its first car in March. Citi analysts in a recent note said the company is likely on track to meet its sales target of 120,000 units by the end of 2024. Investors will be looking out for the sector's gross profit margin, which Visible Alpha forecast at 15.30% for the third quarter.

--SMARTPHONE: Xiaomi is likely to report stronger smartphone sales on rising shipments and largely stable selling prices, Citi said. Investors will be closely watching the company's revenue and gross profit margin from the smartphone segment, given it is its primary revenue driver.

--INTERNET OF THINGS: Xiaomi has been benefiting from the government push's this year to encourage consumers to upgrade old home appliances, HSBC Global Research analysts wrote in a note. While the Chinese market accounts for the bulk of its Internet-of-Things revenue, the analysts expect its overseas market to drive sales growth in the long term.

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

(END) Dow Jones Newswires

November 17, 2024 22:17 ET (03:17 GMT)

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