Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with a revenue of 227.25 billion yuan, up 38.2% year-on-year, and a net profit of 21.51 billion yuan, up 69.8% year-on-year [1] - The automotive business achieved record revenue and sales, with Q2 revenue reaching 21.26 billion yuan, a year-on-year increase of 233.9%, and a narrowing operating loss [2] - The smartphone business showed strong performance in overseas markets despite a decline in domestic ASP, with Q2 revenue of 45.52 billion yuan, down 2.1% year-on-year [3] - The company maintained stable growth in R&D investment, with R&D expenses increasing by 35.8% year-on-year to 14.48 billion yuan in H1 2025 [4] Financial Performance - For H1 2025, the company achieved an operating profit of 26.56 billion yuan, up 177.5% year-on-year, and an EPS of 0.90 [1] - In Q2 2025, the company recorded an operating revenue of 115.96 billion yuan, a year-on-year increase of 30.5% and a quarter-on-quarter increase of 4.2% [1] Automotive Business - The automotive segment's Q2 revenue reached 21.26 billion yuan, with a record delivery of 81,300 vehicles, up 7.2% from Q1 [2] - The average selling price (ASP) of vehicles increased by 6.8% to 262,000 yuan, contributing to a Q2 automotive gross margin of 26.4%, up 11.0 percentage points year-on-year [2] - The company plans to enter the European market by 2027, leveraging high brand recognition to replicate its domestic success [2] Smartphone and IoT Business - The smartphone business saw a total shipment of 42.4 million units in Q2, with a 3.6% increase in domestic shipments [3] - The IoT and consumer products segment reported a revenue of 38.71 billion yuan, up 447% year-on-year, with major appliances achieving a 66.2% growth [3] R&D and Future Outlook - R&D expenses for H1 2025 were 14.48 billion yuan, with a focus on electric vehicles and AI technologies [4] - The company aims to achieve revenues of 497.73 billion yuan, 630.36 billion yuan, and 724.57 billion yuan from 2025 to 2027, with corresponding net profits projected at 41.72 billion yuan, 55.71 billion yuan, and 66.79 billion yuan [4]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [4][7]. Core Insights - The innovative business segment is rapidly developing, with revenue from smart electric vehicles and AI reaching 21.3 billion yuan in Q2 2025, despite an operating loss of 300 million yuan. The Xiaomi YU7 series launched with over 240,000 units locked in within 18 hours, indicating strong demand [2]. - The overseas penetration of the smartphone business is increasing, with Q2 2025 smartphone revenue at 45.5 billion yuan and a gross margin of 11.5%. Global shipments reached 42.4 million units, a year-on-year increase of 0.6%, with a market share of 14.7% [2]. - IoT and lifestyle product revenue reached a record high of 38.7 billion yuan in Q2 2025, growing 44.7% year-on-year, driven by demand for smart appliances and wearable products in mainland China [3]. Financial Projections - The report forecasts adjusted EPS for 2025-2027 to be 1.80, 2.32, and 2.99 yuan, corresponding to P/E ratios of 26.82, 20.88, and 16.19 respectively [4][6]. - Revenue projections for 2025-2027 are 483.38 billion yuan, 595.47 billion yuan, and 726.58 billion yuan, with year-on-year growth rates of 32.11%, 23.19%, and 22.02% [6][13]. - The net profit attributable to the parent company is expected to grow from 40.72 billion yuan in 2025 to 67.37 billion yuan in 2027, with growth rates of 72.11% and 28.87% respectively [6][12]. Market Position - Xiaomi ranks among the top three global smartphone vendors, with significant market share increases in Southeast Asia, Europe, and Africa [2]. - The company is expected to leverage its high-end strategy and overseas expansion to drive steady growth in its smartphone business despite short-term margin pressures [2]. Strategic Outlook - The report expresses optimism regarding Xiaomi's high-end product strategy, the continuous development of AI technology and ecosystem, and the ongoing growth of its automotive business [4].

Group 1 - The core viewpoint of the article highlights the performance of the China Securities TMT Index, which has shown significant growth over various time frames, including a 39.12% increase year-to-date [1] - The China Securities TMT Index is composed of 50 listed companies in the TMT sector selected from the Hong Kong Stock Connect, reflecting the overall performance of related industry companies [1] - The index has a base date of November 14, 2014, with a base point of 3000.0 [1] Group 2 - The top ten weighted companies in the China Securities TMT Index include Tencent Holdings (15.09%), China Mobile (13.35%), and Xiaomi Group-W (12.64%) [1] - The index's holdings are entirely composed of companies listed on the Hong Kong Stock Exchange, with a sector breakdown of 55.70% in communication services and 44.30% in information technology [1] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2]

Group 1 - The core viewpoint of the report is that Xiaomi Group's automotive performance in Q2 is impressive, while the smartphone business adjustments are largely in line with expectations [1] - Xiaomi's Q2 revenue and adjusted net profit were 116 billion and 10.8 billion RMB respectively, meeting market expectations [1] - Automotive revenue increased by 40% year-on-year, with a gross margin of 26.4%, a historical high driven by average selling price growth and platform scale effects [1] Group 2 - Smartphone revenue decreased by 2% year-on-year, primarily due to the REDMI A5 launch lowering overseas average selling prices, while domestic average selling prices benefited from an increase in high-end model proportions [1] - Smartphone gross margin declined by 0.9 percentage points to 11.5% quarter-on-quarter, attributed to rising storage prices impacting mid-to-low-end models [2] - AIOT revenue grew by 45% year-on-year, with a gross margin of 22.5%, slightly down by 2.7 percentage points due to the 618 promotion [2] Group 3 - The company maintained a "buy" rating but adjusted the target price from 67 HKD to 60 HKD based on a 25x P/E for mobile and a 2.2x P/S for automotive business by 2026 [1] - The forecast for automotive revenue in 2026 was slightly adjusted to 182 billion RMB from a previous estimate of 181.7 billion RMB [2] - Revenue forecasts for 2025 and 2026 were lowered to 483 billion and 605.8 billion RMB respectively, along with adjusted earnings per share estimates for those years [2]

Group 1 - The core viewpoint of the report indicates that Xiaomi Group's automotive performance in Q2 is impressive, while the smartphone business adjustments are in line with expectations [1] - Xiaomi's Q2 revenue and adjusted net profit were 116 billion and 10.8 billion RMB respectively, meeting market expectations [1] - Automotive revenue increased by 40% year-on-year, with a gross margin of 26.4%, reaching a historical high due to average selling price growth and platform scale effects [1] Group 2 - Smartphone revenue decreased by 2% year-on-year, primarily due to the release of the REDMI A5 affecting overseas average selling prices, while domestic average selling prices benefited from an increase in high-end model proportions [2] - Smartphone gross margin declined by 0.9 percentage points to 11.5% quarter-on-quarter, mainly due to rising storage prices impacting mid-to-low-end models [2] - AIOT revenue grew by 45% year-on-year, with a gross margin of 22.5%, which is the second highest in history, although it decreased by 2.7 percentage points quarter-on-quarter due to the 618 promotion [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 62.3 HKD, representing an upside potential of 18.6% from the recent closing price of 52.55 HKD [7]. Core Insights - The company achieved record-high revenue and adjusted net profit in Q2 2025, with revenue reaching 1159.6 billion RMB, a year-on-year increase of 30.5%, and adjusted net profit of 108.3 billion RMB, up 75.4% year-on-year, slightly exceeding Bloomberg consensus expectations [1]. - The growth is driven by three main factors: the high-end smartphone strategy and market share increase, the expanding scale effects of the AIoT ecosystem, and the strong performance of the smart electric vehicle business [1][4]. Summary by Sections Smartphone Performance - In Q2 2025, the company's smartphone revenue decreased by 2.1% to 455.2 billion RMB, primarily due to a 2.7% decline in average selling price (ASP) to 1073.2 RMB, partially offset by a 0.6% increase in shipment volume to 42.4 million units [2]. - Despite a 3.8% decline in smartphone shipments in mainland China, the company managed a 3.6% increase in its own shipments, outperforming peers [2]. IoT and Internet Services - Revenue from IoT and lifestyle products reached 387.1 billion RMB in Q2, marking a 44.7% year-on-year growth, with a gross margin of 22.5%, up 2.8 percentage points [3]. - Internet services revenue grew by 10.1% year-on-year to 91.0 billion RMB, maintaining a gross margin of 75.4% [3]. Automotive Business - The company delivered 81,302 vehicles in Q2, setting a new record, with the first SUV model, Xiaomi YU7, achieving over 240,000 orders within 18 hours of launch [3]. - The ASP for the new model reached 253,700 RMB, a 10.9% increase year-on-year, indicating a shift towards higher-end products and improved profitability [3]. Financial Projections - The company is projected to achieve total revenue of 483.4 billion RMB in FY 2025, with a year-on-year growth of 32.1% [5]. - Adjusted net profit is expected to reach 42.5 billion RMB in FY 2025, reflecting a significant year-on-year increase of 56.0% [5].

Core Viewpoint - Xiaomi Group is a leading internet company focused on smartphones, smart hardware, and IoT platforms, with a business model centered on innovation, high-quality hardware, efficient new retail, and a rich array of internet services [1][2]. Financial Performance - As of mid-2025, Xiaomi Group reported total revenue of 227.249 billion yuan and a net profit of 22.829 billion yuan [2]. Market Activity - On August 22, Xiaomi Group's stock price increased by 2.14%, reaching 52.45 yuan per share, with a trading volume of 828 million yuan [1]. Analyst Rating - On August 21, CMB International Securities maintained a "Buy" rating for Xiaomi Group, setting a target price of 60 Hong Kong dollars [3].

Investment Rating - The report maintains a "Recommended" rating for Xiaomi Group [6] Core Views - Xiaomi Group achieved record high revenue in Q2 2025, with a total revenue of 1159.56 billion RMB, representing a year-over-year increase of 30.5% [2] - The company's adjusted net profit for Q2 2025 reached 108.31 billion RMB, a year-over-year increase of 75.4% [2] - The automotive business is entering a phase of rapid growth, with Q2 2025 revenue from smart electric vehicles reaching 206 billion RMB [3] - The company is focusing on high-end smartphone development and has successfully launched its self-developed 3nm flagship SoC chip [4] Summary by Sections Financial Performance - For H1 2025, Xiaomi Group reported revenue of 2272.49 billion RMB, a year-over-year increase of 38.23%, and an adjusted net profit of 215.06 billion RMB, up 69.8% [1] - The gross margin for H1 2025 was 22.7%, an increase of 1.3 percentage points year-over-year [1] Business Segments - The smartphone segment generated revenue of 455.20 billion RMB in Q2 2025, with a year-over-year growth of 8.9% [3] - The IoT segment achieved revenue of 387.12 billion RMB in Q2 2025, marking a year-over-year increase of 44.7% [3] - The automotive and AI innovation segment reported revenue of 212.63 billion RMB in Q2 2025, with a gross margin of 26.4% [3] Market Position - Xiaomi's global smartphone market share reached 14.7% in Q2 2025, maintaining a top-three position for 20 consecutive quarters [3] - The company ranked second in the "2025 Kantar BrandZ Top 50 Globalization Brands" and improved its position in the Fortune Global 500 list to 297th, up 100 places from the previous year [2] Future Projections - Revenue projections for Xiaomi Group are estimated at 5092.95 billion RMB for 2025, 6251.70 billion RMB for 2026, and 7361.50 billion RMB for 2027 [4] - The expected adjusted net profit for the same years is 404.23 billion RMB, 525.07 billion RMB, and 652.09 billion RMB respectively [4]

Investment Rating - The report maintains an "Accumulate" rating for Xiaomi Group-W (1810.HK) as of August 21, 2025 [1][11]. Core Insights - The company continues to execute its core operational strategy of "steady progress," achieving record highs in both revenue and profit. In Q2 2025, the company reported revenue of approximately 116 billion yuan, a year-on-year increase of 30.5%, and an adjusted net profit of about 10.8 billion yuan, up 75.4% year-on-year [5][6]. - The smartphone segment experienced a slight revenue decline of 2.1% year-on-year, primarily due to a decrease in average selling price (ASP), although this was partially offset by an increase in shipment volume [6][7]. - Revenue from IoT and lifestyle products reached a historical high of approximately 38.7 billion yuan, growing 44.7% year-on-year, driven by increased sales in mainland China and global markets [7]. - The electric vehicle segment saw a significant revenue increase of over 200% year-on-year, with Q2 2025 revenue reaching approximately 20.6 billion yuan, supported by higher delivery volumes and ASP [8][9]. - Internet service revenue grew by 10% year-on-year, reaching 9.1 billion yuan, largely due to increased advertising revenue [9]. Summary by Sections Recent Performance - In Q2 2025, Xiaomi's revenue was approximately 116 billion yuan, with a year-on-year growth of 30.5% and a quarter-on-quarter growth of 4.2%. The adjusted net profit was about 10.8 billion yuan, reflecting a year-on-year increase of 75.4% and a quarter-on-quarter increase of 1.5% [5][6]. Smartphone Business - The smartphone revenue for Q2 2025 was approximately 45.5 billion yuan, down 2.1% year-on-year, primarily due to a decline in ASP, which was around 1,073.2 yuan. However, shipment volume increased to approximately 42.4 million units, mainly due to higher sales in mainland China [6][7]. IoT and Lifestyle Products - Revenue from IoT and lifestyle products reached approximately 38.7 billion yuan in Q2 2025, a 44.7% increase year-on-year. The smart home appliance segment also saw significant growth, with air conditioning units shipped exceeding 5.4 million, marking a year-on-year growth of over 60% [7]. Electric Vehicle Segment - The electric vehicle revenue in Q2 2025 was approximately 20.6 billion yuan, with a year-on-year growth of 230.3%. The number of vehicles delivered reached 81,302, supported by improved production capacity [8]. Internet Services - Internet service revenue reached 9.1 billion yuan in Q2 2025, a 10% increase year-on-year, driven by a 14.6% increase in advertising revenue, which amounted to approximately 6.8 billion yuan [9].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group-W (01810.HK) [1] Core Views - The company reported a revenue of 115.96 billion yuan in Q2 2025, representing a year-on-year increase of 30.5% and a quarter-on-quarter increase of 4.2%. The adjusted net profit was 10.83 billion yuan, up 75.4% year-on-year and 1.5% quarter-on-quarter, with a gross margin of 22.5% [8] - The automotive segment achieved a record high gross margin of 26.4% in Q2 2025, with revenue of 21.26 billion yuan, a quarter-on-quarter increase of 14.4%. The company aims to achieve profitability in its automotive business by the second half of 2025 [8] - The smartphone market share continues to rise, with Q2 2025 smartphone revenue at 45.52 billion yuan, a year-on-year decrease of 2.1%. The global market share increased by 0.6 percentage points to 14.7% [8] - The IoT segment generated revenue of 38.71 billion yuan in Q2 2025, with a gross margin of 22.5%. The company has expanded its new retail stores to 17,000, with approximately 200 stores overseas [8] Financial Summary - The total revenue forecast for Xiaomi Group is projected to reach 491.83 billion yuan in 2025, with a year-on-year growth of 34.41% [1] - The net profit attributable to the parent company is expected to be 39.60 billion yuan in 2025, reflecting a year-on-year increase of 67.40% [1] - The earnings per share (EPS) is forecasted to be 1.52 yuan in 2025, with a price-to-earnings (P/E) ratio of 32.11 based on the closing price on August 20, 2025 [1]