Chinese smartphone maker, Xiaomi Inc has reportedly told bankers that it will blow past its annual revenue targets by as much as 18 per cent, sources familiar to the matter have stated. This comes after the company has faced sluggish sales in recent years which lead to a business overhaul.

Xiaomi, which has recently been hearing bank pitches for what might be the biggest tech float in the coming year, is likely to have a net profit of at least $1 billion in 2017. This figure is projected by banks based on the estimated $17 billion or $18 billion the company has earned in revenues. The profits are estimated to reach the $2 billion mark in 2018. The projections have taken into account the operating costs of the company, sources close to the matter have stated under the condition of anonymity.

Additionally, bankers and analysts are expecting the net profits of the company to keep growing in 2019 as well, which according to sources might lead to a $100 billion valuation during the IPO. The company is expected to soon direct its bankers for an IPO. A spokeswoman for the company has confirmed the news regarding the company topping its annual revenue goal of $15 billion; however she refused to comment on matters relating to the company’s IPO or its financials. “We have never externally disclosed any expected net profit and growth data and we do not respond to irresponsible speculation and rumours,” she stated.

Xiaomi was valued at $46 billion after a round of funding held in 2014 and was the world’s most valuable start-up for a brief period of time. However its sales had stagnated over time as the company hastily launched in a number of other markets while facing stiff competition at home from companies like Huawei Technologies, Vivo, and Oppo.

The company has since branched out into selling accessories and home appliances. In the third quarter of this year, the company even overtook Apple to become China’s No. 4 smartphone vendor, according to the International Data Corp, as reported by Reuters. The company has also relaunched sales in various countries including Indonesia, Russia, Vietnam and the United Arab Emirates. The company was reportedly valued at $55 billion at the end of June this year. “This is a good time for them (Xiaomi) to list since they are on a roll,” said IDC’s senior research official, Kiranjeer Kaur. “If they get a good valuation, they will get it now,” she added. However, she also advised the company to concentrate on retaining customers as well. “Xiaomi will need to make sure users upgrade to higher end Xiaomi from lower end Xiaomi , rather than ditch it for other companies,” she was quoted saying.

(Picture courtesy: Android Central)