Core Viewpoint - The Hong Kong stock market indices rose in the afternoon of November 12, with mixed performance in tech stocks, strong performance in property stocks, a rebound in biopharmaceutical stocks, and a decline in solar energy stocks [1] Group 1: Market Performance - The three major indices in the Hong Kong stock market all experienced gains [1] - The Hang Seng Tech Index ETF (513180) saw a slight increase, with leading stocks including JD Health, Midea Group, Haier Smart Home, Sunny Optical Technology, Xiaomi Group, and JD Group [1] - Xiaomi Group's stock rose over 2% in the afternoon session [1] Group 2: Xiaomi's Performance - Xiaomi reported a total payment amount exceeding 29 billion yuan during the "Double Eleven" shopping festival, as of November 11 at 23:59 [1] - The company claimed to have offered 2 billion yuan in discounts, with individual products having discounts up to 4,000 yuan, covering various categories including mobile phones, digital products, and home appliances [1] Group 3: JD's Performance - JD's "Double Eleven" sales report revealed a record high in transaction volume, with the number of orders increasing by nearly 60% year-on-year and the number of placing users growing by 40% [1] - Third-party data indicated that JD's app had the fastest growth in active users within the industry, ranking first in product quality, price, and service satisfaction [1]

Core Insights - Xiaomi Group's electric vehicle momentum exceeds expectations, with Q3 deliveries reaching approximately 110,000 units, and the business may turn profitable [1] - Despite delays in the approval of the second factory in Beijing, Q4 delivery volumes are expected to rise further due to healthy demand and the launch of a new large SUV in the coming year [1] - The company anticipates a 23% increase in electric vehicle shipments by 2027, with an expected net profit margin of 4.5% in the second half of 2027 [1] Financial Adjustments - The investment bank has revised its operating profit forecasts for Xiaomi's core business down by 2% and 1% for 2026 and 2027, respectively, while maintaining a "neutral" rating and lowering the target price from HKD 60 to HKD 50 [1] - The decline in core business profitability is more severe than previously anticipated, attributed to slowing growth in the domestic smartphone market, a pullback in IoT demand after a peak, and rising component costs impacting gross margins [1] - Core profitability is expected to remain under pressure for the next two to three quarters, with significant year-on-year growth likely not resuming until the second half of next year [1]

Core Insights - Xiaomi Group's electric vehicle momentum exceeds expectations, with third-quarter deliveries reaching approximately 110,000 units, and the business may turn profitable [1] - Despite delays in the approval of the second factory in Beijing, fourth-quarter deliveries are expected to rise further due to healthy demand and the launch of a new large SUV next year [1] - The company anticipates a 23% increase in electric vehicle shipments by 2027, with an expected net profit margin of 4.5% in the second half of 2027 [1] Financial Adjustments - The firm has revised down its operating profit forecasts for Xiaomi's core business by 2% and 1% for 2026 and 2027, respectively, maintaining a "neutral" rating and lowering the target price from HKD 60 to HKD 50 [1] - The decline in core business profitability is more severe than previously anticipated, attributed to slowing growth in the domestic smartphone market, a pullback in IoT demand after a seasonal peak, and rising component costs impacting gross margins [1] - Core earnings are expected to remain under pressure for the next two to three quarters, with significant year-on-year growth likely not resuming until the second half of next year [1]

Group 1 - The Hang Seng Technology Index turned negative, with mixed performance among tech stocks; Baidu fell over 3%, Alibaba dropped over 2%, and Meituan decreased by 0.29% [1] - Tencent rose by 0.77%, JD.com increased by over 1%, and Xiaomi Group gained over 3% [1] Group 2 - The Hang Seng Index closed at 26,907.69, up by 211.28 points or 0.79% [2] - The National Enterprises Index reached 9,535.45, increasing by 73.96 points or 0.78% [2] - The Hang Seng Technology Index stood at 5,921.58, down by 2.81 points or 0.05% [2]

Core Insights - Xiaomi has achieved the highest sales volume for domestic smartphones in China for three consecutive years, indicating strong market performance and brand loyalty [1] - The Xiaomi 17 Pro Max has been recognized as the top-selling domestic smartphone in terms of both sales volume and revenue, showcasing its success in the high-end market segment [1] - The year is described as a transformative period for Xiaomi, highlighting the company's continuous improvement and the importance of customer support [1] Company Performance - Xiaomi has secured the title of the best-selling domestic smartphone brand across major e-commerce platforms [1] - The company emphasizes its breakthrough in the ultra-high-end smartphone market, reflecting a strategic shift towards premium products [1] Market Position - The announcement reinforces Xiaomi's competitive position in the domestic smartphone market, particularly against other local brands [1] - The sustained sales growth suggests a robust demand for Xiaomi products, which may influence future investment and market strategies [1]

Core Viewpoint - Xiaomi Group's stock price increased by 3.68% to HKD 44.56, with a trading volume of HKD 3.855 billion, following the announcement of its 2025 Double 11 sales report, which showed total payments exceeding RMB 29 billion [1] Group 1: Sales Performance - As of November 11, 23:59:59, Xiaomi reported a cumulative payment amount exceeding RMB 29 billion for the Double 11 shopping event [1] - The company claimed to have provided discounts totaling RMB 2 billion, with individual products offering savings of up to RMB 4,000 across various categories including smartphones, digital products, and home appliances [1] Group 2: Financial Outlook - Guosheng Securities noted that the continuous optimization of Xiaomi's smartphone product structure may positively impact the smartphone gross margin [1] - Despite the anticipated increase in global storage chip prices leading to cost pressures, the firm expects Xiaomi's smartphone gross margin to remain around 11% for Q3 and Q4 [1] - The potential reduction in national subsidies may affect growth in the home appliance sector, but Xiaomi's competitive edge in the IoT space is expected to remain robust due to product quality and supply chain management capabilities [1]

Core Viewpoint - Xiaomi Group's stock has increased by over 3%, reaching HKD 44.56 with a trading volume of HKD 38.55 billion, following the release of its 2025 Double 11 sales report, which shows a total payment amount exceeding RMB 29 billion [1] Group 1: Sales Performance - Xiaomi reported that its total payment amount for the Double 11 event exceeded RMB 29 billion as of November 11, 23:59:59 [1] - The company claimed to have provided discounts totaling RMB 2 billion, with individual products offering savings of up to RMB 4,000, covering various categories including smartphones, digital products, and home appliances [1] Group 2: Financial Outlook - Guosheng Securities noted that the continuous optimization of Xiaomi's smartphone product structure may positively impact the smartphone gross margin [1] - However, due to the rising prices in the global memory chip market, cost pressures are expected to keep the company's smartphone gross margin around 11% for Q3 and Q4 [1] Group 3: Competitive Position - Despite potential impacts from reduced national subsidies on the home appliance sector, Xiaomi's product quality and supply chain management capabilities are expected to maintain its competitive strength in the IoT sector [1]

Summary of Xiaomi Corp. (1810.HK) Conference Call Company Overview - **Company**: Xiaomi Corp. (1810.HK) - **Market Cap**: HK$1.1 trillion / $143.3 billion - **Enterprise Value**: HK$915.9 billion / $117.8 billion - **Current Price**: HK$42.98 - **Target Price**: HK$56.50 - **Upside Potential**: 31.5% [6][20] Key Points Industry and Market Performance - **Singles' Day GMV**: Xiaomi reported Rmb29.0 billion GMV during the Singles' Day promotion, a 9% decrease from Rmb31.9 billion last year [1][21] - **Smartphone Rankings**: Xiaomi ranked No.2 in sales volume and GMV on JD.com, with three models in the top 10 best-sellers [23][27] - **Market Share**: Xiaomi is gaining volume share in the smartphone segment priced below Rmb3,000 while maintaining leadership in the premium segment with the Xiaomi 17 Pro Max [23][32] Product and Manufacturing Insights - **SU7 Pro/Max Delivery Times**: The waiting time for SU7 Pro and SU7 Max has been reduced to 6-9 weeks from approximately 30 weeks, indicating improved manufacturing capabilities [1][2] - **EV Manufacturing**: In October, Xiaomi delivered 48.6k units, including 15.0k SU7 models, reflecting strong demand and capacity utilization [2][20] - **Upcoming Product Cycle**: A potential new facelift for the SU7 is expected to enhance product offerings into 2026 [19][20] Financial Performance and Projections - **Revenue Growth**: Projected revenue growth for 2024 is Rmb365.9 billion, increasing to Rmb710.8 billion by 2027 [6][17] - **EBITDA Growth**: Expected EBITDA growth from Rmb30.8 billion in 2024 to Rmb79.4 billion in 2027 [6][17] - **EPS Projections**: EPS is projected to grow from Rmb1.07 in 2024 to Rmb2.38 in 2027 [6][17] Strategic Initiatives - **Subsidy for Singles' Day**: Xiaomi announced a Rmb2 billion subsidy for the 2025 Singles' Day, up from Rmb1.3-1.6 billion in previous years, to stimulate sales [24] - **AIoT Sales**: Sales pressure was noted in AIoT categories, but personal care devices showed strong growth [23] Risks and Considerations - **Market Conditions**: The company may face challenges due to a high base from the previous year, impacting year-over-year comparisons [23][32] - **Short-term Volatility**: While the share price may experience short-term fluctuations, the long-term outlook remains positive [20] Future Watchpoints - **Upcoming Results**: Anticipation for 3Q25 results in late November [20] - **Capacity Expansion**: Monitoring progress in EV manufacturing capacity ramp-up [20] - **New Product Launches**: Filing of new EV models and potential technology events towards the end of 2025 [20] Conclusion Xiaomi Corp. is positioned for growth with a strong product lineup and improved manufacturing capabilities. Despite facing challenges in the current market environment, the long-term outlook remains favorable with strategic initiatives aimed at enhancing sales and market share.

Investment Rating - The investment rating for the company is "Hold" [1]. Core Views - The company is expected to maintain double-digit revenue growth over the next three years, with profit growth outpacing revenue growth. The projected P/E ratios for 2025, 2026, and 2027 are 24.17, 18.11, and 14.82 respectively, indicating a positive outlook for overall performance [3][12]. Financial Performance - In the first half of 2025, the company reported revenue of 227.25 billion RMB, a 38.2% increase from 164.39 billion RMB in the same period last year. The second quarter revenue reached 116 billion RMB, a 30.5% year-on-year growth, marking a historical high [12][13]. - The net profit for the first half of 2025 was 11.9 billion RMB, reflecting a 134.2% increase year-on-year. Adjusted net profit was 10.8 billion RMB, up 75.4% [12][13]. - The gross margin for the second quarter was 22.7%, an increase of 5.5 percentage points year-on-year, driven by higher-margin businesses and improved production efficiency [13][14]. Business Development - The "Mobile × AIoT" segment generated revenue of 94.7 billion RMB in the second quarter, a 14.8% increase, accounting for 81.6% of total revenue. The IoT and lifestyle products segment saw revenue growth of 44.7% [15][17]. - The smart electric vehicle segment reported revenue of 21.3 billion RMB with a gross margin of 26.4%, indicating simultaneous growth in scale and profitability [18]. - The company’s R&D expenditure in the first half of 2025 was 14.475 billion RMB, a 41.2% increase, focusing on smart vehicle technology and AI model development [23]. Future Development and Summary - The company has successfully implemented its "people, vehicle, home ecosystem" strategy, enhancing user data and service integration across devices. The global layout leverages "China R&D + Global Manufacturing + Regional Delivery" advantages [24].

Core Viewpoint - The Hang Seng Index rose by 0.18% on November 11, with southbound capital recording a total transaction amount of HKD 898.49 billion, resulting in a net inflow of HKD 44.67 billion [1][2] Group 1: Southbound Capital Transactions - Total southbound capital transactions amounted to HKD 898.49 billion, with buy transactions at HKD 471.58 billion and sell transactions at HKD 426.91 billion, leading to a net buy of HKD 44.67 billion [1] - The Hong Kong Stock Connect (Shenzhen) had a cumulative transaction amount of HKD 354.12 billion, with net buying of HKD 17.86 billion, while the Hong Kong Stock Connect (Shanghai) recorded a cumulative transaction amount of HKD 544.37 billion with net buying of HKD 26.81 billion [1] Group 2: Active Stocks - Alibaba-W had the highest transaction amount among southbound stocks at HKD 75.18 billion, followed by Xpeng Motors at HKD 57.58 billion and SMIC at HKD 48.50 billion [1] - Xiaomi Group-W led in net buying with HKD 11.76 billion, while the highest net selling was seen in Xpeng Motors at HKD 22.66 billion, despite its stock price increasing by 17.93% [1][2] Group 3: Continuous Net Buying and Selling - Xiaomi Group-W and CNOOC were the only two stocks with continuous net buying for more than three days, with Xiaomi Group-W having a total net buy of HKD 65.44 billion over ten days [2] - The stocks with the highest continuous net selling included Alibaba-W, Tencent Holdings, and Meituan, with net selling amounts of HKD 33.47 billion, HKD 10.64 billion, and HKD 4.61 billion respectively [2]