Core Points - The China Hong Kong Mainland Index (CESHKM) increased by 0.77% to 6514.39 points with a trading volume of 65.246 billion [1] - Over the past month, the CESHKM has decreased by 1.71%, and over the past three months, it has declined by 6.15%, while it has risen by 15.49% year-to-date [1] - The index is composed of several indices including the China 120 Index, China A80 Index, and China 280 Index, reflecting the overall performance of large and mid-cap securities listed in Shanghai, Shenzhen, and Hong Kong [1] Index Holdings - The top ten holdings of the CESHKM are Tencent Holdings (9.95%), Alibaba-W (9.65%), Xiaomi Group-W (8.55%), China Construction Bank (8.05%), Meituan-W (6.89%), Industrial and Commercial Bank of China (4.68%), China Mobile (4.57%), BYD Company (3.99%), NetEase-S (3.45%), and JD Group-SW (3.39%) [1] Sector Allocation - The sector allocation of the CESHKM shows that the Hong Kong Stock Exchange accounts for 100.00% [2] - The industry breakdown includes Consumer Discretionary (31.65%), Financials (22.70%), Communication Services (21.96%), Information Technology (10.92%), Energy (5.83%), Healthcare (2.66%), Real Estate (2.36%), Consumer Staples (0.99%), Industrials (0.56%), and Materials (0.38%) [2]

Core Viewpoint - Xiaomi Group's Chairman Lei Jun stated on Weibo that the company has no plans to manufacture oil vehicles [1] Group 1 - Lei Jun's response indicates a clear strategic direction for Xiaomi, focusing on electric vehicles rather than traditional oil-powered cars [1]

Investment Rating - The investment rating for Xiaomi Group is "Buy" with a target price not specified in the report [3][4]. Core Viewpoints - The report emphasizes that the YU7 model is expected to be a significant product for Xiaomi, showcasing a shift towards practicality while maintaining a luxurious brand image. The YU7 is positioned as a mid-to-large pure electric SUV, featuring advanced technology such as laser radar, 800V fast charging, and Nvidia Thor chips [1][2]. - The YU7 is anticipated to leverage Xiaomi's ecosystem, potentially enhancing overall revenue growth through better integration with AIOT products. The initial user interest has exceeded expectations, with a significant portion of new users showing interest in the brand [2][3]. - The report forecasts a strong sales performance for the YU7, predicting that it may outperform market expectations due to its competitive pricing strategy and high-value features [3]. Summary by Sections Product Overview - The YU7 is Xiaomi's second vehicle, designed to complement the SU7, with a focus on a more practical approach while retaining a sporty design. It offers options for single and dual motor configurations, with a 0-100 km/h acceleration time of 3.23 seconds [1]. Market Positioning - The YU7's pricing strategy is centered around providing value for money, with luxury features included in the offering. The report notes that the initial user engagement for the YU7 has been significantly higher than that of the SU7, indicating a broader appeal [2][3]. Financial Projections - The report projects that Xiaomi's total revenue could reach 471.8 billion CNY in 2025 and 679.7 billion CNY in 2026, with electric vehicles and innovative business segments contributing 96.4 billion CNY and 250.6 billion CNY respectively. The adjusted net profit is expected to be 42.9 billion CNY and 85.5 billion CNY for the same years [3].

Group 1 - Goldman Sachs reported that Xiaomi Group-W (01810) achieved a gross merchandise volume (GMV) of 35.5 billion RMB during the 618 shopping festival, representing a year-on-year growth of 35%, and 11% higher than the GMV during the 2024 Double Eleven event [1] - The GMV data aligns with Goldman Sachs' expectations, equating to 71% of the firm's forecast for Xiaomi's Q2 2025 revenue from smartphones and AIoT in China, which is projected to grow by 31% year-on-year [1] - The 618 and Double Eleven promotions are expected to account for 69% and 66% of the quarterly revenue in China for Q2 and Q4 2024, respectively [1] Group 2 - On the JD platform, Xiaomi ranked first in both sales and GMV among domestic smartphone brands, holding four of the top ten best-selling models during the 618 promotion [2] - Xiaomi's flagship series did not make the top ten this year due to increased competition from the discounted iPhone 14, but the Xiaomi 15 Ultra entered the top ten in the ultra-high-end segment [2] - The average discount level for Xiaomi products during the 618 period was approximately 19%, consistent with the previous year, and could reach up to 33% when considering national subsidies [2]

Group 1: Market Overview - Northbound trading recorded a net buy of 14.27 billion HKD, with 10.65 billion HKD from Shanghai Stock Connect and 3.63 billion HKD from Shenzhen Stock Connect [1] - The most bought stocks included Xiaomi Group-W (01810), China Construction Bank (00939), and ZhongAn Online (06066) [1] - The most sold stocks were Tencent (00700), Alibaba-W (09988), and CSPC Pharmaceutical Group (01093) [1] Group 2: Stock Performance - Xiaomi Group-W (01810) saw a net buy of 4.95 billion HKD, driven by strong sales performance during the 618 shopping festival, with total payments exceeding 35.5 billion HKD [4] - China Construction Bank (00939) received a net buy of 3.7 billion HKD, supported by favorable dividend yields and valuation advantages in H-shares [5] - ZhongAn Online (06060) had a net buy of 2.78 billion HKD, benefiting from the recent passing of the Stablecoin Ordinance in Hong Kong [5] Group 3: Sector Insights - Oil and gas stocks showed mixed results, with United Energy Group (00467) and CNOOC (00883) receiving net buys, while Shandong Molong (00568) faced net selling [6] - The innovative drug sector also experienced divergence, with Innovent Biologics (01801) gaining net buys, while CSPC Pharmaceutical Group (01093) faced net selling [6] - Semiconductor company SMIC (00981) received a net buy of 252 million HKD following a strategic divestment to focus on core operations [7] Group 4: Market Sentiment - Market confidence in the AI sector has been shaken due to lower-than-expected capital expenditures and cloud revenue growth, impacting stocks like Alibaba-W (09988) and Tencent (00700) which faced significant net selling [7][8] - Despite current challenges, the long-term growth potential of AI remains positive, particularly in cloud services and user metrics improvement [8]

南向资金今日净买入超14亿港元 小米集团获净买入居前 智通财经6月19日电，南向资金今日净买入14.27亿港元。其中，小米集团-W、建设银行分别获净买入 约4.96亿港元、3.70亿港元；腾讯控股遭净卖出约13.09亿港元。 ...

Market Overview - The Hong Kong stock market opened lower but rebounded, with the Hang Seng Index closing at 24,060.99 points, up 0.7% or 168.43 points, with a total turnover of HKD 229.24 billion [1] - The Hang Seng China Enterprises Index rose 0.86% to 8,729.99 points, while the Hang Seng Tech Index increased by 1.15% to 5,299.91 points [1] - Huatai Securities noted that the market may lack a strong basis for significant short-term upward movement due to uncertainties in global economic conditions and geopolitical environments [1] Blue Chip Performance - Xiaomi Group-W (01810) saw a notable increase of 4.23%, closing at HKD 54.15, contributing 62.92 points to the Hang Seng Index [2] - Other blue-chip stocks included Chow Tai Fook (01929) up 6.03%, Henderson Land (00012) up 4.67%, while China Biopharmaceutical (01177) and Zijin Mining (02899) faced declines of 3.83% and 2.79% respectively [2] Sector Highlights - Large tech stocks generally performed well, with Xiaomi and Kuaishou both rising over 3% [3] - The stablecoin sector showed strong performance, with Lianlian Digital (02598) up 17.97% and other related stocks also seeing significant gains [3] - The real estate sector showed signs of recovery, with several mainland property stocks surging, including Kinhai Holdings (09993) which rose 35.77% [4] Oil and Gas Sector - Oil and gas stocks experienced a resurgence, with Baqian Oil Services (02178) up 66.67% and Shandong Molong (00568) up 32.67% due to increased geopolitical risks in the Middle East [6] - Analysts are closely monitoring the situation in the Middle East, as potential conflicts could significantly impact oil supply [6] Gold Sector - Gold stocks faced declines, with Lingbao Gold (03330) down 12.06% and other gold-related stocks also experiencing losses [6][7] - The price of gold has been volatile, influenced by geopolitical tensions and U.S. tariff policies [7] Notable Stock Movements - Kingsoft (03888) surged 11.08% ahead of the global launch of its new game, which has garnered significant interest [8] - SF Express (09699) reached a new high, increasing 11.57% after revising its delivery service agreements to reflect higher demand [9] - GDS Holdings (09698) rose 6.89% following Amazon's announcement of a significant investment in data center infrastructure in Australia [10]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net inflows from northbound trading, with a total net buy of 13.76 billion HKD on June 11, 2023, indicating strong investor interest in certain stocks while others faced substantial sell-offs [1]. Group 1: Northbound Trading Activity - Northbound trading saw a net buy of 3 billion HKD through the Shanghai Stock Connect and 10.77 billion HKD through the Shenzhen Stock Connect [1]. - The most bought stocks included China Construction Bank (00939), Meituan-W (03690), and Innovent Biologics (01801) [1]. - The most sold stocks were Xiaomi Group-W (01810), Tencent (00700), and Alibaba-W (09988) [1]. Group 2: Stock-Specific Insights - Xiaomi Group-W had a net sell of 9.30 billion HKD, with total buy and sell amounts of 13.67 billion HKD and 22.97 billion HKD respectively [2]. - Tencent faced a net sell of 8.65 billion HKD, with total transactions amounting to 19.75 billion HKD [2]. - Alibaba-W experienced a net sell of 6.71 billion HKD, with total transactions of 17.53 billion HKD [2]. Group 3: Sector Analysis - The banking sector showed mixed results, with China Construction Bank receiving a net buy of 7.06 billion HKD, while China Bank faced a net sell of 3.1 billion HKD [4]. - Analysts suggest that declining deposit rates may drive funds into the stock market, supporting a potential recovery in bank valuations [4]. - The innovation drug sector showed varied performance, with Innovent Biologics and 3SBio receiving net buys, while CSPC Pharmaceutical Group faced a net sell [5]. Group 4: Company Developments - Meituan-W received a net buy of 3.69 billion HKD, bolstered by the launch of its AI Coding Agent product, which allows users to create websites and software tools without coding experience [5]. - China National Offshore Oil Corporation (00883) saw a net buy of 1.6 billion HKD, with positive outlooks on its operational performance and capital expenditure plans [6]. - Bilibili-W (09626) received a net buy of 416 million HKD, supported by new measures to promote the gaming industry [6]. Group 5: Market Sentiment - Tencent and Alibaba's significant net sells were attributed to concerns over capital expenditures and cloud revenue growth falling short of expectations, impacting market confidence in the AI sector [7]. - Xiaomi's net sell was linked to its commitment to enhancing the automotive supply chain in response to national directives [7].

Investment Rating - The report assigns a "Buy" rating to Xiaomi Corp. with a 12-month target price of HK$65, indicating an upside potential of 27.6% from the current price of HK$50.95 [17][20]. Core Insights - Xiaomi's GMV (Gross Merchandise Value) during the first phase of the 6.18 shopping festival reached Rmb16.9 billion, representing a 64% year-over-year increase compared to Rmb10.3 billion at the same time in 2024 [3][5]. - The report highlights that Xiaomi's flagship series did not make the top 10 list this year, attributed to aggressive inventory clearance by Apple, which temporarily increased competition in the premium segment [1][3]. - Xiaomi's discount level during the 6.18 festival is noted to be more disciplined at around 16%, compared to 22% during the same period last year, with potential discounts reaching up to 29% when considering national subsidies [4][16]. Summary by Sections Sales Performance - Xiaomi ranked No.1/2 in sales volume and GMV among domestic smartphone brands on JD.com, maintaining four of the top 10 best-selling models [3][7]. - The company experienced stronger GMV growth in smartphones (+46%/110% year-over-year) compared to AIoT products (+39%/91% year-over-year) at its proprietary channels [7]. Competitive Landscape - Apple's aggressive inventory clearance has led to a temporary recovery in its market share in China, with a noted increase of 6.6 percentage points year-over-year [1][13]. - The report anticipates that the ratio of Phase I GMV to total shopping festival GMV for this year's 6.18 shopping festival will be around 50%, higher than previous years [3][10]. Future Outlook - Xiaomi is positioned for multi-year ecosystem expansion with projected revenue and EPS CAGRs of 26% and 39% from 2024 to 2027, supported by its "Human x Car x Home" strategy [17][18]. - The report emphasizes Xiaomi's robust balance sheet and competitive advantages in the EV supply chain, enhancing its appeal in the electric vehicle market [17].

Group 1: Core Strategy and Performance - Xiaomi's high-end strategy and new retail model were discussed at the 2025 Investor Day, emphasizing the importance of "chips, AI, and OS" as foundational technologies [1] - In 2024, Xiaomi is expected to gain over 13 million net new users in the Chinese smartphone market, with a market share increase of 5.3 percentage points from 2020 to 2024 [1] - In Q1 2025, Xiaomi's global smartphone sales reached 41.8 million units, a year-on-year increase of 3.0%, with a global market share of 14.1% [1] Group 2: IoT and Consumer Products - In Q1 2025, Xiaomi's IoT and consumer products business generated revenue of 32.3 billion yuan, a year-on-year growth of 58.7%, with a gross margin of 25.2% [2] - Revenue from smart home appliances doubled, with significant growth in air conditioners, refrigerators, and washing machines, all showing over 65% year-on-year growth [2] Group 3: Automotive Business - Xiaomi's automotive business reported a loss of 500 million yuan in Q1 2025, a significant reduction of 50.2% from the previous quarter [3] - The new YU7 model is expected to launch in July, aiming to enhance the product lineup and profitability [3] - The automotive business is projected to achieve profitability in Q3 to Q4 of this year, supported by a growing product ecosystem [3] Group 4: Financial Projections - Xiaomi's projected net profits for 2025, 2026, and 2027 are 42.39 billion, 55.75 billion, and 70.08 billion yuan, respectively [3]