Investment Rating - The report maintains a "Strong Buy" investment rating for Xiaomi Group [8] Core Views - Xiaomi Group achieved record high revenue and adjusted net profit in Q2 2025, with revenue reaching 116 billion CNY, a year-on-year increase of 30.5% and a quarter-on-quarter increase of 4.2% [5][8] - The company is focusing on its "New Decade Goal," with significant investments in core technologies and a record high of 78 billion CNY in R&D spending in Q2 2025, reflecting a year-on-year increase of 41.2% [5][8] - The automotive segment is expected to see accelerated capacity release in the second half of 2025, with a narrowing of operating losses from 5 billion CNY to 3 billion CNY in Q2 2025 [5][8] - The IoT business continues to show strong growth, with revenue of 387 billion CNY in Q2 2025, a year-on-year increase of 44.7% [5][8] - The smartphone segment experienced a slight decline in revenue, with Q2 2025 revenue at 455 billion CNY, a year-on-year decrease of 2.1% [5][8] - The internet services segment reported steady growth, with revenue of 91 billion CNY in Q2 2025, a year-on-year increase of 10.1% [6][8] Summary by Sections Financial Performance - Q2 2025 total revenue was 116 billion CNY, with a gross margin of 22.5% and an adjusted net profit of 108 billion CNY, marking a year-on-year increase of 75.4% [5][8] - The company expects total revenue for 2025 to reach 489.9 billion CNY, with adjusted net profit projected at 43.1 billion CNY [8] Automotive Segment - Revenue from smart electric vehicles and AI-related businesses reached 213 billion CNY in Q2 2025, with a gross margin of 26.4% [5][8] - The company plans to enter the European market in 2027, which is expected to enhance its global brand influence [5][8] IoT Segment - The IoT business achieved a record revenue of 387 billion CNY in Q2 2025, driven by strong sales in smart home appliances [5][8] - The gross margin for IoT was 22.5%, reflecting improvements in product mix [5][8] Smartphone Segment - The smartphone business reported revenue of 455 billion CNY in Q2 2025, with a gross margin of 11.5% [5][8] - The company adjusted its annual shipment target to 175 million units, focusing on high-end and global market expansion [5][8] Internet Services - Internet services revenue reached 91 billion CNY in Q2 2025, with a gross margin of 75.4% [6][8] - The global monthly active user count reached 730 million, marking a year-on-year increase of 8.2% [6][8]

Core Viewpoint - Macquarie has downgraded the target price for Xiaomi Group-W (01810) from HKD 69.32 to HKD 61, while maintaining an "Outperform" rating, but has removed the stock from its recommended list in the Asia-Pacific region, anticipating a decrease in the company's profitability in the second half of the year [1] Financial Performance - Xiaomi's second-quarter gross profit exceeded expectations by 1%, benefiting from an expansion in gross margin, but operating expenses increased, leading to an operating profit that fell short of expectations by 15% [1] - The company is expected to see flat quarterly revenue due to the seasonal weakness in IoT products offsetting growth in smartphone and electric vehicle sales [1] Sales Forecast - Macquarie has reduced its forecast for Xiaomi's electric vehicle sales by 24,000 units, reflecting slower-than-expected production ramp-up at the new factory [1] - The quarterly gross margin is anticipated to contract by 0.7 percentage points due to intensified competition in the smartphone market and rising memory costs [1] - The gross margin for electric vehicles is expected to decline by 0.5 percentage points, influenced by the delivery of the YU7 model [1]

该行指，小米第二季毛利胜预期1%，受惠毛利率扩张，但经营开支上升导致经营溢利逊预期15%。麦 格理料小米智能手机及电动车销售增长被物联网季节性疲弱抵销，季度收入将按季持平。该行下调对小 米电动车销量预测2.4万辆，反映新厂房投产慢于预期。该行料小米季度毛利率按季收缩0.7个百分点， 受智能手机竞争加剧及内存加价影响。电动车毛利率料按季跌0.5个百分点，受YU7交付影响。 麦格理发布研报称，下调对小米集团-W(01810)目标价，由69.32港元降至61港元，维持"跑赢大市"评 级，但把该股剔出该行亚洲区推荐股份名单，预期公司下半年盈利较上半年减少，料今年第三季毛利率 承压，因手机竞争加剧、成本趋升及IoT产品季节性放缓。 ...

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 65.0 [1][7]. Core Insights - The company's revenue and net profit for Q2 2025 exceeded expectations, driven by strong performance in home appliances and automotive sectors, leading to historical highs in both metrics [7][10]. - The "people-car-home" ecosystem strategy is showing positive results, with automotive business emerging as a significant growth driver for the future [7]. - The founder's increasing influence on consumers is expected to support the launch of new products [7]. Financial Performance Summary - For Q2 2025, the company achieved revenue of RMB 116 billion, a year-over-year increase of 30.5%, and a net profit of RMB 118.7 billion, up 134% year-over-year [10]. - The automotive segment delivered 81,000 vehicles, generating revenue of RMB 21.3 billion, with losses narrowing to RMB 300 million [10]. - The company forecasts net profits of RMB 42.32 billion, RMB 53.05 billion, and RMB 66.28 billion for 2025, 2026, and 2027 respectively, reflecting year-over-year growth rates of 79%, 25%, and 25% [9][10]. Business Segment Performance - The smartphone segment's revenue was RMB 45.5 billion, with a slight year-over-year decline of 2% [10]. - The Internet of Things (IoT) segment reported revenue of RMB 38.7 billion, a year-over-year increase of 44.7%, with major appliances seeing a 66% increase [10]. - The automotive business is highlighted as a key area for future growth, with significant improvements in both revenue and margin [7][10].

Core Insights - The company is confident in achieving its annual delivery target of 350,000 Xiaomi cars [2] - In Q2, revenue from Xiaomi's smart electric vehicles and AI innovation businesses surged by 234% to 21.3 billion yuan, with operating losses significantly narrowing to 300 million yuan [2] - The company anticipates achieving quarterly profitability in its automotive business in the second half of the year [2] Delivery and Sales Performance - In Q2, Xiaomi's car delivery reached a record high of 81,300 units, a 197.7% increase from 27,300 units in the same period last year [2] - The first SUV, Xiaomi YU7 series, was launched in June, selling over 240,000 units within 18 hours of its release [2] Market Expansion Plans - Xiaomi has officially decided to enter the European electric vehicle market by 2027 [2]

Group 1 - The core viewpoint of the report indicates that Xiaomi Group-W (01810) reported second-quarter revenue and adjusted earnings that were broadly in line with market expectations [1] - The gross margin for Xiaomi's electric vehicle segment reached 26.4% in the second quarter, driven by higher average selling prices and economies of scale, with expectations for further increase to 28% in the third quarter [1] - The potential for Xiaomi's automotive business to achieve breakeven on a quarterly or monthly basis in the second half of the year is highlighted [1] Group 2 - Based on the revised gross margin forecasts for electric vehicles, the earnings per share estimates for Xiaomi for 2025 to 2027 have been raised by 2% to 9% [1] - The rating remains "Buy," with the target price increased from HKD 72 to HKD 76 [1] - In the smartphone segment, due to a limited number of product launches, the outlook for Xiaomi's third-quarter shipment volume has become more cautious, with an expected shipment of 42.2 million units and an annual total of 172 million units, compared to the company's target of 170 to 175 million units [1]

手机方面，由于发布的产品有限，该行对小米第三季的出货量转趋审慎，预期第三季的出货量为4,220 万部，全年的出货量为1.72亿部，相对于小米全年1.7亿至1.75亿部的目标。 智通财经APP获悉，大和发布研报称，小米集团-W(01810)第二季收入及经调整盈利大致符合市场预 期。在SU7 Ultra等的较高平均售价及规模经济的带动下，小米第二季电动车毛利率达到26.4%，该行预 期第三季电动车毛利率将进一步上升至28%。这将有可能使小米汽车业务在下半年实现单季或单月盈亏 平衡。基于电动车毛利率预测获上调，上调小米2025至27年每股盈测2%至9%。重申"买入"评级，并将 目标价由72港元上调至76港元。 ...

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of HKD 65.4, down from the previous HKD 67.8 [1][4][14]. Core Insights - Xiaomi's total revenue for Q2 2025 reached RMB 116 billion, representing a year-on-year growth of 30.5% and a quarter-on-quarter increase of 4.2%. Adjusted net profit grew by 75.4% to RMB 10.8 billion [1][4]. - The overall gross margin for the group was 22.5%, up 1.8 percentage points year-on-year but down 0.3 percentage points from Q1 2025 [1]. - The automotive business showed strong performance with a gross margin of 26.4%, benefiting from scale effects and a higher proportion of high-end model deliveries [2][3]. Summary by Sections Automotive Business - Q2 2025 saw a record delivery of 81,302 vehicles, with revenue increasing by 14% quarter-on-quarter to RMB 20.6 billion. The gross margin for the automotive segment improved significantly from 15.4% to 26.4% year-on-year [2]. - The company is optimistic about the automotive business's profitability, especially with its high-end strategy, and anticipates potential profitability in upcoming quarters [2][3]. Smartphone/IoT/Internet Business - The smartphone segment faced challenges, with revenue declining by 2.1% year-on-year to RMB 45.5 billion and a gross margin contraction to 11.5% [3]. - IoT revenue grew by 44.7% year-on-year to RMB 38.7 billion, driven by high-value smart home appliances, maintaining a strong gross margin of 22.5% [3]. - Internet services continued to show stable growth, with a 10.1% year-on-year revenue increase to RMB 9.1 billion and a high gross margin of 75.4% [3]. Profit Forecast and Valuation - Due to weak global smartphone demand, revenue forecasts for 2025-2027 were adjusted downwards by 2.2%, 0.5%, and 0.2%, respectively. However, net profit forecasts were raised by 9.5%, 4.3%, and 7.8% for the same period [4]. - The target price of HKD 65.4 corresponds to a 30x PE ratio for 2026, reflecting the company's strong IoT and AI ecosystem value [4][14]. Financial Metrics - The report projects a revenue increase to RMB 479.9 billion in 2025, with a net profit of RMB 44.3 billion, representing a 62.2% year-on-year growth [9][12]. - The gross margin is expected to stabilize around 22.7% in 2026, with a projected net profit margin of 9.1% [12][13].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [6][8] Core Insights - Xiaomi Group's Q2 revenue and adjusted net profit reached new highs, with revenue of RMB 116 billion, a year-on-year increase of 30.5%, marking three consecutive quarters of over RMB 100 billion [8] - The adjusted profit was RMB 10.8 billion, exceeding Bloomberg's expectation of RMB 10.2 billion, and represented a year-on-year increase of 75% [8] - Key growth drivers include strong performance in IoT business, improved EV gross margins from the delivery of high-value models, and a slight offset from a decline in smartphone revenue [8] - The management reiterated the R&D expense guidance for 2025 at RMB 30 billion, with a quarter allocated to AI [8] Financial Data and Profit Forecast - Revenue projections for 2025-2027 are revised to RMB 4,854 billion, RMB 5,972 billion, and RMB 7,258 billion respectively, with adjusted net profit forecasts of RMB 436 billion, RMB 512 billion, and RMB 649 billion [2][8] - The expected growth rates for revenue are 33% in 2025, 23% in 2026, and 22% in 2027 [2] - The expected earnings per share for 2025 is RMB 1.63, with a net asset return rate of 20.1% [2] Market Data - As of August 19, 2025, Xiaomi's closing price was HKD 52.40, with a market capitalization of HKD 136.37 billion [3] - The stock has a 52-week high of HKD 61.45 and a low of HKD 17.10 [3] Business Segments Performance - Smartphone revenue in Q2 was RMB 45.5 billion, a year-on-year decrease of 2%, with a gross margin of 11.5% [8] - IoT revenue grew by 45% year-on-year to RMB 38.7 billion, with a gross margin of 22.5% [8] - The electric vehicle segment reported revenue of RMB 21.3 billion with a gross margin of 26.4%, and a delivery of 81,300 units [8]

Core Viewpoint - Goldman Sachs reports that Xiaomi Group-W (01810) Q2 performance is largely in line with expectations, with a 30% year-on-year revenue growth and a 75% increase in adjusted net profit, exceeding the bank's forecasts by 7% to 13% [1] Financial Performance - Revenue increased by 30% year-on-year, driven by strong performance in AIoT, which grew by 45%, surpassing Goldman Sachs and market predictions by 2% and 8% respectively [1] - Adjusted net profit rose by 75% year-on-year, exceeding Goldman Sachs' expectations [1] Product Performance - Electric vehicle sales offset weak smartphone sales, indicating a shift in product demand [1] Forecast Adjustments - Revenue forecasts for Xiaomi from 2025 to 2027 remain largely unchanged, but adjusted net profit forecasts have been lowered by 1% to 4% due to increased R&D investments and taxes [1] - Target price has been reduced from HKD 69 to HKD 65, while maintaining a "Buy" rating [1] Stock Performance - Over the past three months, Xiaomi's stock performance has aligned closely with index trends, with a year-to-date increase of 54% [1] - Concerns about the slowdown in AIoT sales growth and the gradual increase in electric vehicle manufacturing capacity have been noted, despite a slight rise in delivery volumes in August [1]