Investment Rating - Buy rating (首次覆盖) [3][5] Core Views - Xiaomi's strategic shift towards high-end products and its business model evolution are key drivers for future growth [3] - The company's organizational and management changes support its high-end strategy [3] - Xiaomi's 3C business is entering a positive cycle, with smartphone shipments reaching 146 million units in 2023, ranking third globally [4] - The integration of MIUI into Hyper OS and the development of Xiaomi SU7 are significant milestones in Xiaomi's ecosystem strategy [4] - Xiaomi's high-end strategy is expected to enhance its financial metrics, including growth rate, profit margin, R&D, and valuation multiples [3] Business Segments Smartphones - Xiaomi's smartphone shipments in 2023 were 146 million units, ranking third globally [4] - The high-end smartphone segment accounted for 22.1% of total shipments in Q2 2024 [12] - Xiaomi's smartphone ASP in China increased by over 19% in 2023, reaching a historical high [101] IoT and Lifestyle Products - Xiaomi's home appliance business revenue grew by 40% in 2023, with shipments of air conditioners, refrigerators, and washing machines reaching record highs [4] - The IoT and lifestyle products segment is expected to grow by 18% in 2024, reaching RMB 94.3 billion [11] Internet Services - Xiaomi's internet services revenue is projected to grow by 12% in 2024, reaching RMB 33.9 billion [11] - The high-end smartphone segment contributes significantly to internet services, with LTV being twice that of non-premium smartphones [146] Smart Electric Vehicles - Xiaomi SU7, the company's first electric vehicle, achieved sales of over 10,000 units for five consecutive months in 2024 [4] - Xiaomi plans to deliver 120,000 units of SU7 in 2024, with a production capacity of 190,000 units in the first phase [124][130] - The company has invested heavily in R&D for its electric vehicle business, with a team of 3,400 engineers and over RMB 10 billion in R&D expenses [141] Financial Projections - Xiaomi's total revenue is expected to grow by 28% in 2024, reaching RMB 347.4 billion [5] - Adjusted net profit is projected to increase by 26% in 2024, reaching RMB 24.3 billion [5] - The company's smartphone business revenue is expected to grow by 19% in 2024, reaching RMB 187.3 billion [10] - The IoT and lifestyle products segment is projected to grow by 18% in 2024, reaching RMB 94.3 billion [11] - Internet services revenue is expected to grow by 12% in 2024, reaching RMB 33.9 billion [11] - The smart electric vehicle business is projected to generate RMB 30.4 billion in revenue in 2024, with a delivery target of 129,600 units [11] Valuation - Xiaomi's "Smartphone x AIoT" segment is valued at RMB 7,165 billion based on a 22x PE multiple for 2025E adjusted net profit of RMB 332 billion [5] - The smart electric vehicle and innovation business segment is valued at RMB 674 billion based on a 0.9x PS multiple for 2025E revenue of RMB 728 billion [5] - The target market capitalization for 2025E is RMB 7,839 billion (HK$ 847.5 billion), with a target price of HK$ 33.9 per share, representing a 21% upside [5]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group-W (1810 HK) with a target price of HKD 36.00 [4][9][12] Core Views - Xiaomi's stock price has risen 85% year-to-date, significantly outperforming the Hang Seng Tech Index by 67 percentage points [4] - The company's revenue is expected to grow 28% YoY in 3Q24, driven by its automotive and IoT businesses [4] - Xiaomi's SUV launch in 2025Q1 is anticipated to sustain rapid revenue growth, with Non-GAAP profit projected to increase by 55% in 2025 [4] - The new target price of HKD 36 includes an estimated valuation of HKD 8.7 per share for Xiaomi's automotive business [4][12] Smartphone/IoT/Internet Business - Xiaomi's smartphone shipments reached 42.8 million units in 3Q24, a 3.3% YoY increase, with a global market share of 13.5% [5] - Smartphone gross margin is expected to be 11.8% in 3Q24, pressured by rising raw material costs [5] - IoT revenue is projected to grow 20% YoY in 3Q24, with gross margin exceeding 20%, the highest since its IPO, driven by strong overseas and wearable product sales [5] - Internet business revenue is expected to grow 9.8% YoY in 3Q24, with gross margin remaining strong at 75% [5] Automotive Business - Xiaomi's automotive revenue is forecasted to exceed RMB 9 billion in 3Q24, a 42.8% QoQ increase [6] - Automotive shipments in 3Q24 are estimated to be close to 40,000 units, with gross margin improving to 17% [6] - The company's second-phase automotive factory is expected to be completed by June 2025, with total annual capacity potentially reaching 400,000 units [6] - Xiaomi's automotive business is projected to achieve breakeven in 2025, benefiting from economies of scale and reduced expense ratios [6] Financial Projections - Xiaomi's revenue for 2024E, 2025E, and 2026E is forecasted at RMB 348.2 billion, RMB 471.6 billion, and RMB 574.1 billion, respectively, representing YoY growth of 28.5%, 35.4%, and 21.8% [8] - Non-GAAP net profit for 2024E, 2025E, and 2026E is projected at RMB 24.7 billion, RMB 38.3 billion, and RMB 47.2 billion, respectively, with YoY growth of 27.9%, 55.4%, and 23.3% [8] - The company's PE ratio for 2025E is estimated at 16.69x, with a PB ratio of 3.03x [8] Valuation Methodology - The target price of HKD 36 is based on a SOTP valuation method, assuming a forward HKD/RMB exchange rate of 0.92 [12] - Xiaomi's existing businesses are valued at 17.3x 2025E PE, equivalent to HKD 27.3 per share, while the automotive business is valued at 2x 2025E PS, equivalent to HKD 8.7 per share [12][13] Industry Comparison - Xiaomi's 2025E PE ratio of 16.69x is lower than the industry average of 18.56x for comparable companies [14] - The company's automotive business valuation multiple of 2x 2025E PS is higher than the industry average of 0.86x, reflecting expectations of rapid growth and synergies with its smartphone business [14]

Core Viewpoint - Xiaomi is gaining attention in the electric vehicle (EV) market following the launch of its SU7 Series, with notable praise from Ford CEO Jim Farley, positioning the company as a strong competitor in the EV space despite its current minor role in overall financials [1][2][3]. Group 1: Company Overview - Xiaomi launched its SU7 Series in March 2024, marking its entry into the EV market [1]. - The company has reported deliveries of 27,307 vehicles from the SU7 Series and aims to deliver 100,000 vehicles by November 2024, with an updated goal of 120,000 for the year [4][6]. - Farley described Xiaomi as "an industry juggernaut" and emphasized its strength as a consumer brand compared to traditional car manufacturers [3]. Group 2: Financial Performance - In Q2 2024, Xiaomi reported total revenue of 88.9 billion yuan ($12.4 billion), with the EV segment contributing only 6.4 billion yuan ($893 million) [6]. - The gross margin for the EV segment was 15.4%, significantly lower than the 21.1% gross margin for the smartphone and AIoT segment [6][5]. - Despite the excitement around its EV offerings, they currently play a minor role in Xiaomi's overall operations, which are primarily focused on smartphones and AIoT [5]. Group 3: Market Position and Future Outlook - Farley's comments have sparked interest among EV investors, highlighting Xiaomi's successful product launch in contrast to Apple's halted EV project [7]. - While Xiaomi's EV offerings are not yet major contributors to its financial performance, they represent a potential growth area to monitor [7]. - For investors seeking immediate exposure to the Chinese EV market, alternatives like Nio and Li Auto are suggested, while a more conservative approach could involve electric car exchange-traded funds [8].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 29.40 HKD based on a 27x PE valuation for 2025 [2][5][8]. Core Insights - The company's smartphone shipments continue to grow year-on-year, with a 3% increase to 42.8 million units in Q3 2024, maintaining a 14% market share globally [1]. - The electric vehicle SU7 achieved over 20,000 deliveries in October, with expectations to meet the annual target of 100,000 units ahead of schedule [1]. - The launch of the Xiaomi Surge OS 2 marks a significant step towards an "AI full ecosystem," featuring innovations in system architecture and AI capabilities [1]. Financial Forecasts - Earnings per share (EPS) are projected to be 0.79, 1.00, and 1.26 CNY for 2024, 2025, and 2026 respectively, reflecting an upward adjustment from previous estimates [2][8]. - Revenue is expected to grow significantly, with forecasts of 347.3 billion CNY in 2024, 396.9 billion CNY in 2025, and 461.4 billion CNY in 2026, indicating a growth rate of 28% in 2024 [4][8]. - The gross margin is projected to stabilize around 20.9% in 2024, with net profit margins improving to 5.7% [4][8]. Market Performance - The company's stock has shown strong performance, with a 91.98% increase over the past 12 months, outperforming the Hang Seng Index [5]. - The stock price as of November 1, 2024, was 27.3 HKD, with a 52-week range of 27.45 to 11.84 HKD [5].

Investment Rating - The report provides a positive outlook on Xiaomi Group (1810), indicating a new starting point for the company as it accelerates its move towards high-end products [1]. Core Insights - The performance of the new Surge OS 2.0 has significantly improved, with core technologies such as HyperCore, HyperConnect, and HyperAI being upgraded to enhance user experience across devices [1]. - The Xiaomi 15 series and new AIoT products have generated considerable excitement in the industry, showcasing Xiaomi's commitment to innovation and high-quality offerings [1]. - The launch of the SU7 Ultra prototype car has elevated Xiaomi's brand image in the high-end market, with a competitive price point compared to luxury brands [1]. - Xiaomi plans to increase its R&D investment significantly, with expectations of over 24 billion yuan in 2024 and more than 30 billion yuan in 2025, to further enhance its technological capabilities [1]. - The automotive division is ramping up production, with October deliveries reaching 20,000 units, and the company is on track to meet its annual delivery target of 140,000 units [1]. Summary by Sections Company Overview - Xiaomi is focusing on high-end product development, with a strong emphasis on AI integration and user experience improvements through its new operating system [1]. Product Innovations - The Xiaomi 15 series features enhanced specifications and competitive pricing, while the introduction of various AIoT products demonstrates the company's commitment to meeting consumer needs [1]. Brand Development - The SU7 Ultra's record-setting performance has bolstered Xiaomi's high-end brand perception, with significant pre-orders indicating strong market interest [1]. Financial Outlook - The company anticipates improved margins in its automotive segment due to increased production efficiency and government subsidies for its core products [1].

Investment Rating - The report reiterates a "Buy" rating for Xiaomi Group-W (01810 HK) with a target price of 31 HKD [3][4] Core Views - Xiaomi Group released the Xiaomi 15 series smartphones, Xiaomi SU7 Ultra mass production version, and 16 other hardware and software products at its October 29th launch event [1] - Global smartphone shipments grew 4 0% YoY in Q3 2024 to 316 1 million units Xiaomi maintained its position as a top 3 global player with 42 8 million shipments and 13 5% market share [2] - Xiaomi's smartphone gross margin is expected to bottom out in Q3 2024 and improve thereafter as screen and memory cost increases stabilize [2] - The AIoT business is benefiting from China's home appliance trade-in subsidy program and overseas IoT expansion driving revenue growth [2] - Xiaomi SU7 deliveries exceeded 20 000 units in October 2024 and full-year deliveries are expected to reach 120 000 units [3] Financial Projections - Revenue is forecast to grow 28%/25%/16% YoY in 2024/2025/2026 to 347 8/434 5/504 3 billion RMB [3] - Non-GAAP net profit is projected at 31 7/35 4/40 5 billion RMB in 2024/2025/2026 representing 18%/12%/14% YoY growth [3] - The automotive business is expected to turn profitable in 2026 with 3 4 billion RMB in net profit after losses of 7 2/2 0 billion RMB in 2024/2025 [3] Business Segment Analysis - Smartphone revenue is forecast to grow 20%/8%/7% YoY in 2024/2025/2026 to 189 0/203 2/218 3 billion RMB with gross margin improving from 12 7% to 13 9% [13] - IoT and lifestyle products revenue is projected to increase 19%/11%/11% YoY in 2024/2025/2026 to 95 5/106 1/117 7 billion RMB with gross margin rising from 20 0% to 21 4% [13] - Internet services revenue is expected to grow 10%/7%/7% YoY in 2024/2025/2026 to 33 1/35 4/38 0 billion RMB maintaining a 75% gross margin [13] - Automotive revenue is forecast to surge from 27 2 billion RMB in 2024 to 127 8 billion RMB in 2026 with gross margin improving from 16 0% to 19 7% [13]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group (1810 HK) [3] Core Views - Xiaomi Group's 3Q24 revenue is expected to increase by 28 1% YoY to RMB 908 billion with Non-IFRS net profit projected to grow by 4% YoY to RMB 6 2 billion [2] - The IoT business is anticipated to see robust revenue growth exceeding 20% YoY in 3Q24 with毛利率 potentially surpassing 20% [2] - Xiaomi's automotive business achieved a milestone with 20 000 units delivered in October 2024 and the SU7 Ultra量产版 positioned in the premium segment with a pre-sale price of RMB 814 900 [2] - The company's 2024 R&D investment is expected to exceed RMB 14 billion [2] Market Data - Xiaomi Group's total market capitalization stands at HKD 6813 21 billion with a total share capital of 24 957 billion shares [1] - The stock's one-year low high range is HKD 11 84-27 45 with a three-month turnover rate of 72 5% [1] - The stock has shown strong performance with a 1M 3M and 1Y relative return of 26 8% 37 3% and 63 5% respectively [1] Financial Performance - Xiaomi's 3Q24 smartphone shipments are expected to increase by 3% YoY to 42 8 million units with ASP rising by 10% YoY to around RMB 1100 [2] - The company's 3Q24 smartphone毛利率 is projected to be at a yearly low of 11-12% but is expected to improve in 4Q24 [2] - The internet business is forecasted to maintain steady growth with a slight环比 decline in毛利率 due to seasonal advertising and e-commerce investments [2] Future Projections - Xiaomi's 2024-2026 Non-IFRS net profit forecasts have been上调 to RMB 238 289 and 347 billion respectively [2] - The company's 2024E 2025E and 2026E revenues are projected to be RMB 352 820 million RMB 427 584 million and RMB 488 526 million respectively [4] - The adjusted P E ratios for 2024E 2025E and 2026E are 26 21 and 18 respectively [4] Business Segments - The smartphone segment is expected to contribute RMB 188 481 million in 2024E followed by IoT and lifestyle products at RMB 98 609 million and internet services at RMB 33 198 million [4] - The automotive segment is projected to generate RMB 30 576 million in 2024E with significant growth expected in subsequent years [4] Financial Position - Xiaomi's total assets are forecasted to increase from RMB 273 507 million in 2022 to RMB 468 711 million in 2026 [5] - The company's cash and short-term investments are expected to grow from RMB 61 439 million in 2022 to RMB 175 823 million in 2026 [5] - Total liabilities are projected to rise from RMB 129 584 million in 2022 to RMB 236 881 million in 2026 [5] Cash Flow - Operating cash flow is expected to increase from RMB -4 390 million in 2022 to RMB 42 457 million in 2026 [6] - Free cash flow is projected to grow from RMB 3 247 million in 2022 to RMB 27 547 million in 2026 [6] - Net cash flow is forecasted to rise from RMB 3 304 million in 2022 to RMB 40 370 million in 2026 [6]

南向资金今日净买入约27亿港元 小米集团获净买入居前 财联社10月31日电，南向资金今日净买入26.83 亿港元。 港股通（沪）方面，腾讯控股、小米集团-W分别获净买入2.14亿港元、2.01亿港元；美团-W遭净卖出 2.51亿港元；港股通（深）方面，小米集团-W、腾讯控股分别获净买入4.6亿港元、3.2亿港元；吉利汽 车遭净卖出4.15亿港元。 ...

Chinese smartphone company Xiaomi on Tuesday announced a sports car version of its SU7 electric sedan would begin preorders for the equivalent of more than $110,000. BEIJING — China's Xiaomi said Tuesday that it had delivered more than 20,000 SU7 EVs in October as it ramps up production for its electric car venture in a fiercely competitive market. The Chinese company, which is largely known for its smartphones and home appliances, reiterated plans to deliver 100,000 SU7 vehicles by the end of November. Xia ...

Investment Rating - The report assigns an "Outperform" rating to the company [5][8]. Core Insights - The company has shown significant growth in adjusted net profit and cash reserves, with a historical high cash reserve of 136.3 billion yuan as of 2023 [6][8]. - The gross margin has steadily improved, indicating a recovery in profitability, with a gross margin of 21.21% in 2023, up 4.22 percentage points year-on-year [6][8]. - The company is focusing on global market opportunities, with domestic and overseas revenues showing strong growth in the first half of 2024 [6][8]. - The automotive business is highlighted as a key area of growth, with the launch of the Xiaomi SU7 series electric vehicles [6][8]. Financial Performance Summary - In 2023, the company reported operating revenue of 271 billion yuan, a decrease of 3.2% year-on-year, but adjusted net profit increased by 126.3% to 19.3 billion yuan [6][8]. - For the first half of 2024, operating revenue reached 164.4 billion yuan, a year-on-year increase of 29.6%, with adjusted net profit rising by 51.3% to 12.7 billion yuan [6][8]. - The company expects revenue growth of 16% in 2024, with a projected operating revenue of 314.7 billion yuan [12][33]. Business Segment Analysis 1) **Smartphone Business** - The smartphone segment generated revenue of 93 billion yuan in the first half of 2024, reflecting a year-on-year increase of 29.9% [13][15]. - The company aims for gradual revenue recovery in this segment, with expected growth rates of 4.1% to 6.1% from 2024 to 2026 [13][15]. 2) **IoT and Consumer Products** - Revenue from IoT and consumer products reached a record high of 47.1 billion yuan in the first half of 2024, growing by 20.6% year-on-year [15][18]. - The segment is expected to see continued growth, with projected revenue increases of 13% to 14% from 2024 to 2026 [15][18]. 3) **Internet Services** - Internet services revenue reached 16.3 billion yuan in the first half of 2024, marking a 12.7% increase year-on-year [19][22]. - The segment is anticipated to maintain growth, with expected revenue increases of 3% to 4% from 2024 to 2026 [19][22]. 4) **Automotive Business** - The automotive segment generated 6.4 billion yuan in revenue in the second quarter of 2024, with expectations to deliver 120,000 vehicles by the end of the year [22][26]. - Revenue projections for the automotive business are set at 25.85 billion yuan for 2024, with significant growth anticipated in subsequent years [22][26]. Valuation and Market Outlook - The report estimates the company's total market value to be between 613.33 billion and 698.35 billion HKD, with a target price range of 24.58 to 27.98 HKD per share [8][33]. - The valuation is based on a combination of price-to-earnings (PE) and price-to-sales (PS) ratios for different business segments [8][33].