Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of HKD 43 [5][7]. Core Insights - Xiaomi's recent product launch, including the new SU7 model and the Mimo-V2-Pro AI model, exceeded market expectations in terms of pricing and features, indicating strong competitive positioning in the AI era [1][2]. - The SU7 model features significant upgrades and competitive pricing, which is approximately HKD 20,000 lower than its main competitor, Tesla, enhancing its market appeal [3]. - Xiaomi's commitment to AI development is underscored by a projected investment of over RMB 60 billion in the next three years, positioning the company as a key player in the AI landscape [2]. Summary by Sections Product Launch - Xiaomi's spring product launch showcased the new SU7 model with prices set at HKD 219,900, HKD 249,900, and HKD 303,900, reflecting only a HKD 4,000 increase from the previous generation [1]. - The Mimo-V2-Pro AI model, featuring 1 trillion parameters, ranks 8th globally in performance, demonstrating significant cost advantages compared to competitors [2]. Automotive Segment - The new SU7 model has seen strong initial demand, with over 15,000 orders within 34 minutes of launch, indicating robust market interest [3]. - The report anticipates a total delivery of 410,000 vehicles for the year, supported by improvements in sales and production processes [3]. Financial Projections - The report forecasts non-GAAP net profits of RMB 388.9 billion, RMB 345.1 billion, and RMB 453.7 billion for 2025-2027, respectively [5]. - The target price of HKD 43 corresponds to a 29x PE ratio for 2026, reflecting confidence in Xiaomi's growth trajectory [5][37]. Ecosystem Development - Xiaomi's return to the PC market with the Xiaomi Book Pro and the launch of the Watch S5 further solidify its "human-vehicle-home" ecosystem strategy, enhancing its competitive edge [4].

Summary of Xiaomi Corp. (1810.HK) Conference Call Company Overview - **Company**: Xiaomi Corp. (1810.HK) - **Industry**: Electric Vehicles (EV) and Consumer Electronics Key Highlights from the SU7 New Facelift Launch - **Launch Date**: March 19, 2026 - **Pricing**: - SU7: US$32.0k (Rmb219.9k) - SU7 Pro: US$36.4k (Rmb249.9k) - SU7 Max: US$44.2k (Rmb303.9k) - Prices are only Rmb4k higher than first-gen models despite comprehensive upgrades [1][11] - **Order Performance**: - 15,000 confirmed orders within the first 34 minutes, outperforming the first-gen SU7 which had 89,000 pre-orders in the first 24 hours [2] - Initial order momentum expected to be steadier compared to previous models due to improved consumer expectations and delivery policies [3] Consumer Experience and Order Volume - **Consumer Focus**: Enhanced purchase experience leading to more stable order volumes compared to initial spikes seen in previous models [3] - **Delivery Expectations**: Improved manufacturing capacity and delivery policies, including "ready-to-ship" vehicles within 1-5 weeks [3] Future Product Launches - **Upcoming Models**: - YU7 GT model expected to launch around mid-2026 - A full-size extended-range electric vehicle SUV anticipated in late Q3 2026 [4] Investment in AI - **Investment Commitment**: Rmb60 billion planned for AI over the next three years, with Rmb16 billion earmarked for 2026 [5] - **Strategic Positioning**: Xiaomi aims to leverage its "Human x Car x Home" ecosystem to capture growth in the global AI model industry [5] Financial Projections - **EV Volume Expectations**: Projected to reach 610,000 units in 2026, with 190,000 units for SU7, 380,000 for YU7, and 40,000 for the large-sized SUV model [21] - **Gross Profit Margin (GPM)**: Expected to decline to 17.9% in Q1 2026 and 20.7% in Q2 2026 due to increased consumer benefits and rising costs [23] Competitive Positioning - **Market Comparison**: The SU7 facelift model is positioned competitively against peers like Tesla and Xpeng in terms of size, driving dynamics, and range [19] - **Performance Enhancements**: Significant upgrades in powertrain performance, chassis control, and safety features compared to first-gen models [11][18] Risks and Challenges - **Market Risks**: - Intense competition in the smartphone and EV sectors - Potential pressure on gross margins due to rising costs and market dynamics [25] - **Execution Risks**: Concerns regarding the execution of brand premiumization and the EV business strategy [25] Investment Thesis - **Long-term Outlook**: Xiaomi is viewed as a leader in the physical AI space with strong ecosystem integration capabilities, positioning it well for future growth in the EV market [26] Price Target - **12-Month Target Price**: HK$41.00, representing a potential upside of 12.9% from the current price of HK$36.32 [28]

Investment Rating - The report maintains a "BUY" rating for Xiaomi, with a target price of HK$47.16, implying a 28.8x FY26E P/E ratio [1][19]. Core Insights - Xiaomi's new-gen SU7 electric vehicle (EV) is positioned competitively in the premium EV market, featuring significant upgrades such as an 800V silicon carbide high-voltage platform for ultra-fast charging and an extended range of up to 902 km [1][9]. - The introduction of three new MiMo-V2 models emphasizes Xiaomi's commitment to integrating AI across its devices, enhancing its "Human x Car x Home" ecosystem [1][9]. - Management has reiterated plans for over RMB60 billion in AI R&D investments over the next three years, which is expected to support long-term margin improvements [1][9]. Financial Summary - Revenue projections show a recovery with FY24 expected at RMB365.9 billion, growing to RMB611.4 billion by FY27, reflecting a CAGR of 18.3% [2][25]. - Adjusted net profit is forecasted to increase from RMB27.2 billion in FY24 to RMB45.7 billion in FY27, with a notable growth rate of 41.3% in FY24 [2][25]. - The report adjusts earnings estimates downward by 6-13% for FY25-27 due to increased AI investments and industry headwinds [1][19]. Earnings Revision - The adjusted net profit for FY25 is revised to RMB38.2 billion, down from RMB40.8 billion, reflecting a 6% decrease [15]. - Revenue estimates for FY25 remain unchanged at RMB454.7 billion, while operating profit is revised down by 4% to RMB49.8 billion [15][16]. Valuation - The target price of HK$47.16 is derived using a sum-of-the-parts (SOTP) valuation method, reflecting different growth profiles across Xiaomi's business segments [19][20]. - The valuation assigns multiples of 18x for smartphones, 23x for AIoT, and 25x for internet services, with a 2.0x FY26E P/S for the EV business [19][20]. Share Performance - The current market capitalization of Xiaomi is approximately HK$767.9 billion, with a recent price of HK$36.32, indicating a potential upside of 29.8% to the target price [3][4].

Investment Rating - The report maintains an "Outperform" rating for Xiaomi Corp with a target price of HK$48.80, while the current price is HK$36.32 [2]. Core Insights - Xiaomi launched the MiMo-V2 series, enhancing its IoT ecosystem by integrating text, vision, and speech capabilities, establishing a core AI hub for its "Human-Car-Home" ecosystem [3][12]. - The automotive segment is expected to show strong growth, with the new-generation SU7 featuring advanced driving systems and AI integration [4][13]. - The company plans to invest at least RMB 60 billion in AI over the next three years, with significant R&D expenditures anticipated in 2026 [4][14]. - Revenue forecasts for 2025-2027 are adjusted to RMB 457.9 billion, RMB 494.1 billion, and RMB 571.8 billion, reflecting year-on-year growth of 25%, 8%, and 16% respectively [15][16]. - The adjusted net profit for the same period is projected at RMB 38.18 billion, RMB 39.84 billion, and RMB 48.56 billion, indicating growth rates of 33%, 4%, and 22% [16]. Financial Summary - Revenue and profit projections for Xiaomi are as follows: - FY2023: Revenue of RMB 271.4 billion, Net profit of RMB 17.5 billion - FY2024: Revenue of RMB 365.6 billion, Net profit of RMB 23.6 billion - FY2025E: Revenue of RMB 457.9 billion, Net profit of RMB 40.1 billion - FY2026E: Revenue of RMB 494.1 billion, Net profit of RMB 40.1 billion [9][15]. - The gross profit margin is expected to be around 21.2% in FY2023, improving to 22.3% by FY2025E [9]. Valuation Methodology - The report employs a sum-of-the-parts (SOTP) valuation method, assigning: - Hardware business a PE of 21x - Internet business a PE of 24x - Automotive business a PE of 73.5x or a PS of 2.4x [16].

Investment Rating - The report maintains an "Outperform" rating for Xiaomi Corp with a target price of HK$48.80, while the current price is HK$36.32 [2]. Core Insights - Xiaomi launched the MiMo-V2 series, enhancing its IoT ecosystem by integrating text, vision, and speech capabilities, establishing a core AI hub for its "Human-Car-Home" ecosystem [3][12]. - The automotive segment is expected to show strong growth, with the new-generation SU7 featuring advanced driving systems and AI integration [4][13]. - The company plans to invest at least RMB 60 billion in AI over the next three years, with significant R&D expenditures planned for 2026 [4][14]. Financial Projections - Revenue forecasts for 2025-2027 are adjusted to RMB 457.9 billion, RMB 494.1 billion, and RMB 571.8 billion, reflecting year-on-year growth of 25%, 8%, and 16% respectively [5][15]. - Adjusted net profit projections for the same period are RMB 38.18 billion, RMB 39.84 billion, and RMB 48.56 billion, indicating growth rates of 33%, 4%, and 22% [5][16]. - The SOTP valuation assigns a PE of 21x for hardware, 24x for internet services, and 73.5x for automotive, leading to a target price of HK$48.80 [5][16]. Market Performance - The company's market capitalization is HK$785.77 billion (US$100.27 billion), with an average daily trading volume of US$717.46 million [2]. - Over the past year, the stock has seen a decline of 37% [2].

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 小米集团 (於開曼群島註冊成立以不同投票權控制的有限公司) 呈交日期： 2026年3月19日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 不同投票權架構公司普通股 | | 股份類別 B | | 於香港聯交所上市 | | 是 | | | 證券代號 (如上市) | 01810 | 說明 | | | | | | | | 多櫃檯證券代號 | 81810 | RMB 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | ...

Summary of Xiaomi Corp. (1810.HK) Conference Call Company Overview - **Company**: Xiaomi Corp. (1810.HK) - **Market Cap**: HK$910.7 billion / $116.2 billion - **Enterprise Value**: HK$721.5 billion / $91.9 billion - **Current Price**: HK$35.14 - **Target Price**: HK$41.00 - **Upside Potential**: 16.7% [5][34] Key Developments - **Model Releases**: Xiaomi launched three advanced models in the MiMo LLM family: 1. **MiMo-V2-Pro**: Flagship model with 1 trillion+ parameters, designed for real-world applications, ranking 8th globally in the Artificial Analysis Intelligence Index [10][23]. 2. **MiMo-V2-Omni**: Multimodal model excelling in audio, image, and video understanding, competing closely with leading models [10][25]. 3. **MiMo-V2-TTS**: Speech synthesis model for voice agents, featuring advanced style control and natural prosody [10]. - **Performance Metrics**: MiMo-V2-Pro has shown a 36% lower operational cost compared to GLM-5 and 90% lower than Claude Sonnet 4.6, making it highly cost-effective [18]. - **Token Consumption**: The models have surpassed 2 trillion tokens processed on OpenRouter, indicating high demand and usage [17]. Financial Projections - **Revenue Growth**: Projected revenue growth of 35.0% in 2024, decreasing to 20.3% by 2027 [12]. - **EBITDA Growth**: Expected to grow from Rmb 30,821.2 million in 2024 to Rmb 54,184.5 million in 2027 [15]. - **EPS Growth**: Anticipated EPS growth of 40.8% in 2024, with a decline in 2026 [12]. Investment Thesis - **Market Position**: Xiaomi is positioned as a leading developer of foundation models with a strong ecosystem strategy ("Human x Car x Home") [32][33]. - **R&D Investments**: Increased R&D spending (Rmb 40 billion in 2026E) is expected to enhance long-term growth despite short-term profit pressures [21]. - **Catalysts**: Upcoming product releases, including the facelift of the SU7 model, are seen as key catalysts for stock performance [21]. Risks - **Market Competition**: Intense competition in the smartphone and EV markets could impact market share and profitability [34]. - **Execution Risks**: Potential challenges in brand premiumization and execution of the EV business strategy [34]. - **Macroeconomic Factors**: Economic downturns and foreign exchange fluctuations may pose risks to performance [34]. Conclusion - **Recommendation**: The stock is rated as a "Buy" with a target price of HK$41.00, reflecting confidence in Xiaomi's growth potential and strategic positioning in the AI and consumer electronics markets [34].

Core Insights - Chinese electric vehicle (EV) sales are recovering from a seasonal slump, with major manufacturers Xiaomi and XPeng preparing for significant updates to their models that compete with Tesla [1][4]. Group 1: Company Updates - Xiaomi is set to release an updated version of its SU7 sedan, which competes with Tesla's Model 3, featuring a V6 engine, a charging range of 560 miles, and a fast-charging capability that adds approximately 415 miles of range in just 10 minutes [2][6]. - XPeng is expected to report earnings soon, with a focus on its robotaxi-specific model, which is part of its strategy to enhance its autonomous vehicle offerings [2][11]. - XPeng's quarterly revenue is projected to grow by about 40% year over year to $3.12 billion, although the company is expected to remain unprofitable with a net loss of $2.9 million [12][13]. Group 2: Market Trends - The overall sales of EVs in China dropped by 32% compared to the previous year, but analysts suggest that the typical early-year sales slump is largely over [4]. - The competition among EV makers is shifting from price cuts to new model launches and feature upgrades, indicating a more innovation-driven market [5]. - Tesla continues to outsell Xiaomi in China, with Tesla selling 38,206 cars last month compared to Xiaomi's 20,196 units [9].

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 小米集团 (於開曼群島註冊成立以不同投票權控制的有限公司) 呈交日期： 2026年3月18日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 不同投票權架構公司普通股 | 股份類別 | B | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | 01810 | 說明 | | | | | | | | 多櫃檯證券代號 | 81810 | RMB 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report anticipates short-term performance pressure but remains optimistic about the smart terminal ecosystem benefiting from advancements in AI [1] - The company is expected to continue gaining market share in the high-end smartphone segment and its automotive business is projected to achieve profitability [1] - The report adjusts the forecast for net profit for 2025-2027 to 42.7 billion, 34.7 billion, and 37.4 billion respectively, reflecting the impact of rising storage prices [1] Financial Forecasts - Total revenue is projected to grow from 270.97 billion in 2023 to 549.22 billion by 2027, with a compound annual growth rate (CAGR) of approximately 10% [1] - Net profit is expected to increase significantly in 2024 by 606.34% year-on-year, followed by a growth of 35.38% in 2025, before experiencing a decline in 2026 [1] - The latest diluted EPS is forecasted to rise from 0.67 in 2023 to 1.43 in 2027, indicating a strong growth trajectory [1] Business Segments - **Smartphones**: The company is projected to maintain a global market share of 13.1% in Q4 2025, despite a forecasted decline in revenue due to rising storage costs [1] - **IoT and Consumer Products**: Revenue for this segment is expected to reach 126.4 billion in 2025, with a year-on-year growth of 21% [1] - **Internet Services**: Anticipated revenue growth of 10% in 2025, reaching 37.4 billion, with stable margins [1] - **Smart Automotive and Innovation**: The automotive segment is expected to see a revenue increase of over 200% in 2025, with a gross margin of 23% [1] Valuation Metrics - The price-to-earnings (P/E) ratio is projected to decrease from 43.87 in 2023 to 20.48 by 2027, indicating improved valuation as earnings grow [1] - The company is recognized as the largest consumer IoT platform globally, with significant long-term growth potential driven by AI integration [1]