Financial Performance - Q3 2024 revenue reached a record high of RMB 92.507 billion, with adjusted net profit of RMB 6.252 billion [1] - Gross margin in Q3 2024 was 20.41%, and net profit margin was 5.77%, showing sequential improvement since Q1 2024 [2] Smartphone Business - Global smartphone shipments reached 43.1 million units in Q3 2024, a 3.1% YoY increase, with a market share of 13.8% [4] - Premiumization strategy has achieved significant results, with continuous improvement in product competitiveness [5] Smart EV Business - Smart EV business gross margin further increased to 17.1% in Q3 2024 due to scale effects [5] - The company has already achieved its target of delivering 100,000 new vehicles by November 18, 2024, and is moving towards a new annual target of 130,000 units [6] - End-to-end full-scenario intelligent driving is expected to be launched in the pioneer version by the end of December, enhancing user experience [6] Other Product Categories - Tablet, wearable products, air conditioners, and washing machines saw shipment growth exceeding 50% YoY [7] - Internet services achieved a record high in revenue with a gross margin of 77.5% in Q3 2024, benefiting from expanding user base [7] Strategic Outlook - The company's "Human x Car x Home" ecosystem strategy is expected to fully leverage synergies across businesses [4] - With its established consumer electronics brand, user base, and supply chain advantages, the company is well-positioned for long-term growth as its automotive business develops and AIoT product portfolio expands [7]

小米集团-W（1810.HK）2024 年三季报点评 [盈利预测与财务指标 Table_Forcast] 24Q3 业绩持续增长，汽车业务规模效应凸显 2024 年 11 月 18 日 ➢ 事件：11 月 18 日，小米集团发布 2024 年三季报，公司 2024Q3 实现营收 925.07 亿元（YoY+30.0%，QoQ+4.1%），经调整净利润 62.52 亿元（YoY+4.4%， QoQ+1.2%）。24Q3 毛利率为 20.41%（YoY-2.3pct，QoQ-0.3pct），净利率 为 5.77%（YoY-1.1pct，QoQ+0.1pct）。 ➢ 24Q3 业绩表现强劲，单季营收创历史新高，净利率逐季提升。24Q3，公 司实现营收 925.07 亿元（YoY+30.0%，QoQ+4.1%），创历史新高，分业务来 看，智能手机/IoT 与生活消费产品/互联网服务/高科技电动汽车业务分别实现营 收 475/261/85/97 亿元，同比分别增长 13.9%/26.3%/9.1%/-，在总营收中的 占比分别为 54.7%/28.5%/9.6%/6.3%。公司盈利实现稳健增长，经调整净利润 62.52 ...

Financial Data and Key Metrics - Total revenue for Q3 reached RMB92.5 billion, up 31% YoY [7] - Adjusted total profit was RMB6.3 billion, with net losses for the innovative business narrowing to RMB1.5 billion [7] - Gross margin for the group was 20.4%, with handset gross margin at 11.7% and smart e-car and innovative business gross margin at 17.1% [7] - Cash reserves reached RMB151.6 billion, up 18.7% YoY [29] Business Line Performance - Handset and IoT core business revenue was RMB82.8 billion, up 17% YoY [7] - Smart handset revenue was RMB47.5 billion, up 13.9% YoY, with a delivery volume of 43.1 million units, up 3.1% [22] - IoT and lifestyle products revenue was RMB26.1 billion, up 20% YoY, with a gross margin of 20.8%, a historical high [10][24] - Internet services revenue reached RMB8.5 billion, up 9.1% YoY, with global active users hitting 686 million, up 10% [26] Market Performance - In the Chinese market, Xiaomi ranked 4 in handset market share with 14.7%, up 1.2 percentage points [22] - Xiaomi ranked 3 in handset delivery in 52 countries globally [13] - The company achieved a record 686 million global active users, with 168 million in China [13] Strategic Direction and Industry Competition - Xiaomi continues to invest heavily in premiumization, with the Xiaomi 15 series achieving a higher selling price and faster sales compared to previous models [8][9] - The company is focusing on integrating vehicles, handsets, and IoT devices to create a fully connected ecosystem [12] - Xiaomi's vehicle business, particularly the SU7 series, has shown strong performance with 40,000 units delivered, including 20,000 in October alone [15] Management Commentary on Operating Environment and Future Outlook - Management highlighted the company's ability to tackle external uncertainties and maintain stable growth despite fierce competition and higher supply chain costs [5][7] - The company expects continued growth in 2025, particularly in the home appliance and IoT segments, with plans to further optimize product offerings and expand sales channels [37][41] - Xiaomi aims to enhance its global brand influence and continue its premiumization strategy, particularly in high-end handset markets [70] Other Important Information - Xiaomi's ESG performance has been recognized, with the company joining the top ESG 50 in China for 2024 and receiving an upgraded MSCI ESG rating from BB to BBB [31][32] - The Xiaomi Foundation has donated RMB650 million to support technological innovation, talent nurturing, and assistance to those in need [33] Q&A Session Summary Question: Home appliance growth and future plans [36] - Xiaomi's home appliance segment saw over 50% growth in September, with further optimization expected in 2025 [37][44] - The company plans to strengthen upstream technologies and expand sales channels for home appliances [37] Question: Handset competitive layout and small-screen models [47] - Xiaomi 15's success is attributed to superior user experience, battery storage, and refined design, not just screen size [49][50] - The company focuses on attracting and retaining customers through premium offerings and seamless upgrades [52] Question: Automobile business ASP and production line momentum [58] - ASP improvement in the automobile segment is driven by product mix and increased delivery efficiency [59] - Xiaomi plans to release more production capacity to shorten delivery cycles [59] Question: Handset market share and global productivity [61] - Xiaomi aims to sustain growth in the Chinese market and expand in regions like Africa and Latin America, targeting a 20% improvement in brand influence [62] Question: Synergy between automobile and handset businesses [64] - The automobile business is contributing to Xiaomi's brand influence and new retail trends, creating cross-selling opportunities between handsets and vehicles [64][65] Question: Premiumization strategy and overseas expansion [68] - Xiaomi's premiumization strategy is supported by strong product offerings and customer acceptance of higher prices [69] - The company plans to focus on Europe, Southeast Asia, the Middle East, Latin America, and Africa for overseas premiumization [70] Question: Xiaomi Home expansion and strategy [73] - Xiaomi plans to expand its offline retail network to 15,000 shops by the end of 2024 and 20,000 by 2025, with a focus on ultra-large shops in premium locations [73][75]

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Financial Data and Key Metrics - Total revenue reached RMB 92.5 billion, a 31% YoY increase, marking the first quarter to surpass RMB 90 billion [3] - Smartphone revenue was RMB 82.8 billion, up 17% YoY, with a gross margin of 11.7% [3] - IoT and lifestyle products revenue grew to RMB 26.1 billion, with a gross margin of 20.8%, a record high [13] - Adjusted net profit for the quarter was RMB 6.3 billion, with core business profit margin at 8.3% [3] - Cash reserves reached RMB 151.6 billion, an 18.7% YoY increase [16] Business Line Performance - Smartphone shipments reached 43.1 million units globally, maintaining the top three position for 17 consecutive quarters [12] - IoT and lifestyle products saw a 26.3% YoY growth, with smart home appliances like air conditioners and refrigerators showing strong performance [13] - Internet services revenue hit a record high of RMB 8.5 billion, with overseas internet services growing 18.3% YoY [14] - Smart electric vehicle (EV) revenue was RMB 9.7 billion, with a gross margin of 17.1%, and deliveries reached 39,790 units [14] Market Performance - In China, the company's smartphone market share increased by 1.2 percentage points to 14.7%, ranking fourth [7] - Globally, the company ranked in the top three in 52 countries and regions, and top five in 60 countries and regions [7] - The global MIUI user base reached 686 million, with 168 million in China, driving strong growth in internet services [13] Strategic Direction and Industry Competition - The company continues to focus on its high-end strategy, with the Xiaomi 15 series achieving strong sales despite price increases [4] - The "Smart Home + AIoT" strategy has driven significant growth in IoT and lifestyle products, with a focus on product innovation and ecosystem synergy [6] - The company is expanding its global footprint, with plans to bring its new retail model to international markets [8] - In the EV sector, the company aims to deliver 130,000 units in 2024, with a focus on improving gross margins and expanding sales and service networks [8] Management Commentary on Operating Environment and Future Outlook - The company highlighted the importance of AI in driving future growth, with a focus on building a unified AI ecosystem across all devices [9] - Management emphasized the need for continued investment in R&D, particularly in AI and EV technologies, to maintain long-term competitiveness [10] - The company expects strong growth in its smart home appliances and EV businesses, driven by product innovation and market expansion [6][8] Other Important Information - The company has been recognized for its ESG efforts, with improvements in MSCI ESG ratings and awards for corporate governance and sustainability [16] - The Xiaomi Foundation has donated RMB 650 million to support initiatives in technology innovation, talent development, and poverty alleviation [17] Q&A Summary Question: Growth path for the smart home appliance business - The company plans to transition from ODM to in-house production, focusing on core component R&D and expanding sales channels [19][20] - Gross margins for smart home appliances are higher than the overall IoT segment, contributing to overall profitability [27] Question: Factors driving EV gross margin improvement - Scale effects and single-product efficiency have driven gross margin improvements, with further enhancements expected in Q4 [25] - The company plans to continue heavy R&D investment in EV technologies to build future competitive barriers [27] Question: Competitive advantages of Xiaomi 15 series in a crowded market - The Xiaomi 15 series focuses on delivering a balanced user experience with no compromises, leveraging advanced technologies like ultrasonic fingerprint sensors and IP68 ratings [30][31] - The company's ability to maintain high product quality and user experience has driven strong sales despite price increases [44] Question: Synergies between EV and existing retail networks - The company is leveraging its existing retail network to expand EV sales, with plans to open 500-square-meter stores in premium locations [35] - The integration of EV sales into existing retail channels has shown strong efficiency, with high customer traffic and low operational costs [36] Question: ASP improvement in EV business - ASP improvements are driven by product mix, with higher-end models like the Max Pro contributing to higher average prices [38] - The company expects further ASP growth with the launch of new high-end models in 2025 [38] Question: Market share growth strategy for smartphones - The company aims to increase market share in key regions like China, Africa, and Latin America, with a focus on high-end product growth [39] - The integration of the "Human x Car x Home" ecosystem is expected to drive further growth in smartphone sales [41] Question: Outlook for high-end smartphone pricing and overseas expansion - The company believes that users are willing to accept price increases for high-end products, driven by strong product capabilities [44] - Overseas, the company is focusing on markets like Europe, Southeast Asia, and the Middle East for high-end smartphone growth [45] Question: Expansion plans for Xiaomi Home stores - The company plans to accelerate the expansion of Xiaomi Home stores, with a target of 20,000 stores by 2025 [46] - The integration of EV sales into Xiaomi Home stores has shown strong profitability and customer engagement [49]

Financial Performance - Group revenue reached RMB 92.5 billion, a 30.5% year-over-year increase[11] - Adjusted net profit was RMB 6.3 billion, up 4.4% year-over-year[11] - Cash resources totaled RMB 151.6 billion, an 18.7% year-over-year increase[11] - Smart EV and other new initiatives revenue reached RMB 9.7 billion, a 52.3% quarter-over-quarter increase[11] Business Highlights - Global smartphone shipments ranked 3 with a 13.8% market share[14] - AIoT connected devices reached 861.4 million, a 23.2% year-over-year increase[14] - Number of Vehicle Delivered 39,790[14] - Global MAU reached 685.8 million, a 10.1% year-over-year increase[14] Strategic Initiatives - Xiaomi HyperOS 2 was launched, aiming for an AI-based ecosystem[25] - Offline store expansion continued, with over 13,000 stores in Mainland China as of Q3 2024[28] - The company is committed to increasing investment in research and development, with expenses reaching approximately RMB 24 billion in 2024 and an estimated RMB 30 billion in 2025[19, 20]

证券时报e公司讯，小米集团公告，2024年第三季度，小米集团总收入为人民币925亿元，同比增长 30.5%。 业务分部来看，2024年第三季度，手机×AIoT分部收入为人民币828亿元，同比增长16.8%，智能电动汽 车等创新业务分部收入为人民币97亿元。 2024年第三季度，集团经调整净利润为人民币63亿元，同比增长4.4%，其中包括智能电动汽车等创新 业务经调整净亏损人民币15亿元。 ...

Revenue and Profit - Xiaomi's total revenue for Q3 2024 reached RMB 92.5065 billion, a year-on-year increase of 30.5%[4] - Xiaomi's total revenue for the first nine months of 2024 was RMB 256.9012 billion, a year-on-year increase of 29.9%[6] - The company's adjusted net profit for Q3 2024 reached RMB 6.3 billion, a year-on-year increase of 4.4%[15] - Xiaomi's adjusted net profit in Q3 2024 was RMB 6.3 billion, including an adjusted net loss of RMB 1.5 billion for the "Smart Electric Vehicles and Other Innovative Businesses" segment[7] - Revenue increased by 4.1% from RMB 88.9 billion in Q2 2024 to RMB 92.5 billion in Q3 2024[80] - Adjusted net profit grew by 1.2% from RMB 6.2 billion in Q2 2024 to RMB 6.3 billion in Q3 2024[119] - Q3 2024 reported net profit was RMB 5,340,292 thousand with a net profit margin of 5.8%[124] - Non-IFRS net profit for Q3 2024 was RMB 6,251,965 thousand with a net profit margin of 6.8%[124] - Non-IFRS net profit for the first nine months of 2024 was RMB 18,918,320 thousand with a net profit margin of 7.4%[140] - Reported net profit for the first nine months of 2024 was RMB 14,583,173 thousand with a net profit margin of 5.7%[140] - Non-IFRS net profit for the first nine months of 2023 was RMB 14,363,088 thousand with a net profit margin of 7.3%[156] - Net profit attributable to the company's owners for the nine months ended September 30, 2024, was RMB 14,632,467 thousand, a 14.8% increase from RMB 12,747,675 thousand in the same period of 2023[190] Smartphone Business - Xiaomi's global smartphone shipments in Q3 2024 were 43.1 million units, a year-on-year increase of 3.1%[8] - Smartphone revenue for Q3 2024 was RMB 47.5 billion, a 13.9% year-on-year increase, with global shipments of 43.1 million units, up 3.1%[17] - Smartphone revenue grew by 13.9% YoY to RMB 47.4523 billion in Q3 2024, with ASP increasing by 10.6% to RMB 1,102.2[38] - Smartphone revenue rose by 2.0% from RMB 46.5 billion in Q2 2024 to RMB 47.5 billion in Q3 2024, driven by increased shipments[83] - The Xiaomi 15 series achieved sales of 1 million units faster than its predecessor, despite a higher starting price[18] - The sales cost of smartphones increased by 20.7% from RMB 34.7 billion in Q3 2023 to RMB 41.9 billion in Q3 2024, driven by higher sales and rising core component costs[50] - Smartphone gross margin decreased from 12.1% in Q2 2024 to 11.7% in Q3 2024, primarily due to higher core component costs[103] IoT and Lifestyle Products - Xiaomi's AIoT platform connected devices (excluding smartphones, tablets, and laptops) grew to 861.4 million by September 30, 2024, a year-on-year increase of 23.2%[8] - IoT and lifestyle products revenue for Q3 2024 reached RMB 26.1 billion, a 26.3% year-on-year increase, with a record-high gross margin of 20.8%[21] - The AIoT platform connected 861.4 million IoT devices (excluding smartphones, tablets, and laptops) as of September 30, 2024, up 23.2% year-on-year[21] - IoT and lifestyle products revenue rose by 26.3% YoY to RMB 26.1022 billion in Q3 2024[39] - IoT and lifestyle products revenue decreased by 2.5% from RMB 26.8 billion in Q2 2024 to RMB 26.1 billion in Q3 2024[84] - The sales cost of IoT and lifestyle products increased by 21.8% from RMB 17.0 billion in Q3 2023 to RMB 20.7 billion in Q3 2024, primarily due to increased sales[51] - IoT and lifestyle products gross margin increased from 19.7% in Q2 2024 to 20.8% in Q3 2024, driven by higher-margin products like wearables[104] - The gross margin of IoT and lifestyle products increased from 17.8% in Q3 2023 to 20.8% in Q3 2024, driven by higher-margin products[61] Internet Services - Internet services revenue for Q3 2024 hit a record RMB 8.5 billion, a 9.1% year-on-year increase, with a gross margin of 77.5%[25] - Internet services revenue increased by 9.1% YoY to RMB 8.4628 billion in Q3 2024[42] - Internet services revenue grew by 2.4% from RMB 8.3 billion in Q2 2024 to RMB 8.5 billion in Q3 2024[86] - The gross margin of internet services increased from 74.4% in Q3 2023 to 77.5% in Q3 2024, primarily due to increased advertising revenue[61] - Internet service cost increased by 6.4% from RMB 1.8 billion in Q2 2024 to RMB 1.9 billion in Q3 2024, driven by higher advertising and other value-added service costs[96] Smart Electric Vehicles - Xiaomi delivered 39,790 Xiaomi SU7 series vehicles in Q3 2024, with a total of 67,157 vehicles delivered by September 30, 2024[8] - Smart electric vehicle revenue in Q3 2024 was RMB 9.5 billion, with 39,790 Xiaomi SU7 series vehicles delivered[45] - Xiaomi SU7 series delivered 39,790 new vehicles in Q3 2024, with cumulative production reaching 100,000 units by November 13, 2024[26] - Xiaomi SU7 Ultra pre-sales reached 3,680 units within 10 minutes, priced at RMB 814,900[30] - Smart electric vehicle revenue surged by 52.1% from RMB 6.2 billion in Q2 2024 to RMB 9.5 billion in Q3 2024, driven by increased deliveries[89] - Smart electric vehicle and innovation business cost surged by 49.1% from RMB 5.4 billion in Q2 2024 to RMB 8.0 billion in Q3 2024, due to increased vehicle deliveries[99] - Smart electric vehicle and innovation business gross margin improved from 15.4% in Q2 2024 to 17.1% in Q3 2024, due to higher ASP and lower core component costs[105] R&D and Innovation - Xiaomi's R&D expenditure in Q3 2024 was RMB 6 billion, a year-on-year increase of 19.9%[11] - Xiaomi's R&D expenses in Q3 2024 were RMB 5.9568 billion, up 19.9% YoY[33] - The R&D expenses increased by 19.9% from RMB 5.0 billion in Q3 2023 to RMB 6.0 billion in Q3 2024, mainly due to increased expenses related to innovative businesses such as smart electric vehicles[65] - R&D expenses rose from RMB 5.5 billion in Q2 2024 to RMB 6.0 billion in Q3 2024[78] - R&D expenses for the nine months ended September 30, 2024, increased to RMB 16,613,900 thousand, a 21.9% rise from RMB 13,634,383 thousand in the same period of 2023[190] - R&D expenses increased by 8.3% from RMB 5.5 billion in Q2 2024 to RMB 6.0 billion in Q3 2024, mainly due to higher expenses in smart electric vehicle and innovation business[108] Global User Base and Market Presence - Xiaomi's global monthly active users reached a record high of 685.8 million in September 2024, a year-on-year increase of 10.1%[8] - The company's global monthly active users reached 685.8 million in September 2024, a 10.1% year-on-year increase[25] - Xiaomi's offline retail stores in mainland China exceeded 13,000 by September 30, 2024[12] - The company's global wearable product shipments in Q3 2024 grew over 50% year-on-year, with smartwatches and TWS earbuds hitting record highs[23] Financial Position and Cash Flow - Cash reserves as of September 30, 2024, stood at RMB 151.6 billion, up 18.7% year-on-year[15] - Cash and cash equivalents as of September 30, 2024, were RMB 39.7 billion[162] - Net cash from operating activities for Q3 2024 was RMB 12,858.1 million[167] - Net cash used in investing activities for Q3 2024 was RMB 9,028.4 million[167] - Net cash used in financing activities for Q3 2024 was RMB 3,554.4 million[167] - Net increase in cash and cash equivalents for Q3 2024 was RMB 275.3 million[168] - The company's total cash reserves as of September 30, 2024, amounted to RMB 151.6 billion[170] - Net cash generated from operating activities in Q3 2024 was RMB 12.9 billion, primarily due to pre-tax profit of RMB 6.8 billion[172] - Net cash used in investing activities in Q3 2024 was RMB 9 billion, mainly due to a net increase in long-term bank deposits of RMB 8.9 billion[173] - Net cash used in financing activities in Q3 2024 was RMB 3.6 billion, primarily due to repayment of borrowings of RMB 1 billion[174] - The company's total borrowings as of September 30, 2024, were RMB 27.4 billion[175] - Capital expenditures for mobile × AIoT and smart electric vehicle innovation businesses were RMB 31.847 billion and RMB 14.313 billion respectively[177] - The company invested in approximately 430 companies with a total book value of RMB 64.9 billion as of September 30, 2024[180] - Total restricted bank deposits as of September 30, 2024, amounted to RMB 4.9 billion[186] - Net cash generated from operating activities was RMB 15,388.685 million, a decrease from RMB 33,489.982 million in the same period last year[197] - Net cash used in investing activities was RMB 6,319.313 million, compared to RMB 29,321.565 million in the previous year[197] - Net cash used in financing activities was RMB 3,099.077 million, up from RMB 548.255 million in the prior year[197] - Net increase in cash and cash equivalents was RMB 5,970.295 million, compared to RMB 3,620.162 million in the same period last year[198] - Beginning cash and cash equivalents were RMB 33,631.313 million, up from RMB 27,607.261 million in the previous year[198] - The impact of exchange rate changes on cash and cash equivalents was RMB 53.746 million, down from RMB 425.143 million in the prior year[198] - Ending cash and cash equivalents were RMB 39,655.354 million, compared to RMB 31,652.566 million in the same period last year[199] Gross Profit and Margin - Xiaomi's overall gross profit margin in Q3 2024 was 20.4%, with the "Smartphone × AIoT" segment at 20.8% and the "Smart Electric Vehicles and Other Innovative Businesses" segment at 17.1%[12] - The gross profit increased by 17.2% from RMB 16.1 billion in Q3 2023 to RMB 18.9 billion in Q3 2024, while the gross margin decreased from 22.7% to 20.4%[56] - The gross margin of the smartphone × AIoT division decreased from 22.7% in Q3 2023 to 20.8% in Q3 2024[60] - Gross profit increased from RMB 18.4 billion in Q2 2024 to RMB 18.9 billion in Q3 2024[78] - Gross profit rose by 2.6% from RMB 18.4 billion in Q2 2024 to RMB 18.9 billion in Q3 2024, while gross margin declined from 20.7% to 20.4%[100] - Gross profit for the nine months ended September 30, 2024, was RMB 54,105,304 thousand, up 29.2% from RMB 41,862,294 thousand in the same period of 2023[190] Sales and Marketing Expenses - The sales and marketing expenses increased by 32.6% from RMB 4.7 billion in Q3 2023 to RMB 6.3 billion in Q3 2024, driven by expenses related to smart electric vehicles and overseas logistics for the smartphone × AIoT business[66] - Xiaomi's total sales cost in Q3 2024 increased by 34.4% YoY to RMB 73.6251 billion[47] - The sales cost of the smartphone × AIoT division increased by 19.7% from RMB 54.8 billion in Q3 2023 to RMB 65.6 billion in Q3 2024[49] - Sales cost increased by 4.4% from RMB 70.5 billion in Q2 2024 to RMB 73.6 billion in Q3 2024[91] - Other related business cost increased by 12.7% from RMB 1.0 billion in Q2 2024 to RMB 1.1 billion in Q3 2024[97] ESG and Corporate Responsibility - Xiaomi's MSCI ESG rating improved from BB to BBB in October 2024[31] Employee and Organizational Structure - The company had 42,057 full-time employees as of September 30, 2024, with 20,436 in R&D roles[182] Assets and Liabilities - Total assets as of September 30, 2024, amounted to RMB 350,945,365 thousand, up 8.2% from RMB 324,247,439 thousand as of December 31, 2023[193] - Property, plant, and equipment increased to RMB 16,154,692 thousand as of September 30, 2024, a 17.7% rise from RMB 13,720,825 thousand as of December 31, 2023[193] - Long-term bank deposits surged to RMB 39,929,852 thousand as of September 30, 2024, a 118.3% increase from RMB 18,293,650 thousand as of December 31, 2023[193] - Total equity attributable to the company's owners as of September 30, 2024, was RMB 177,244,056 thousand, an 8.1% increase from RMB 163,995,489 thousand as of December 31, 2023[195] - Total liabilities as of September 30, 2024, were RMB 173,120,841 thousand, up 8.2% from RMB 159,985,671 thousand as of December 31, 2023[195]

Investment Rating - Buy rating (首次覆盖) [3][5] Core Views - Xiaomi's strategic shift towards high-end products and its business model evolution are key drivers for future growth [3] - The company's organizational and management changes support its high-end strategy [3] - Xiaomi's 3C business is entering a positive cycle, with smartphone shipments reaching 146 million units in 2023, ranking third globally [4] - The integration of MIUI into Hyper OS and the development of Xiaomi SU7 are significant milestones in Xiaomi's ecosystem strategy [4] - Xiaomi's high-end strategy is expected to enhance its financial metrics, including growth rate, profit margin, R&D, and valuation multiples [3] Business Segments Smartphones - Xiaomi's smartphone shipments in 2023 were 146 million units, ranking third globally [4] - The high-end smartphone segment accounted for 22.1% of total shipments in Q2 2024 [12] - Xiaomi's smartphone ASP in China increased by over 19% in 2023, reaching a historical high [101] IoT and Lifestyle Products - Xiaomi's home appliance business revenue grew by 40% in 2023, with shipments of air conditioners, refrigerators, and washing machines reaching record highs [4] - The IoT and lifestyle products segment is expected to grow by 18% in 2024, reaching RMB 94.3 billion [11] Internet Services - Xiaomi's internet services revenue is projected to grow by 12% in 2024, reaching RMB 33.9 billion [11] - The high-end smartphone segment contributes significantly to internet services, with LTV being twice that of non-premium smartphones [146] Smart Electric Vehicles - Xiaomi SU7, the company's first electric vehicle, achieved sales of over 10,000 units for five consecutive months in 2024 [4] - Xiaomi plans to deliver 120,000 units of SU7 in 2024, with a production capacity of 190,000 units in the first phase [124][130] - The company has invested heavily in R&D for its electric vehicle business, with a team of 3,400 engineers and over RMB 10 billion in R&D expenses [141] Financial Projections - Xiaomi's total revenue is expected to grow by 28% in 2024, reaching RMB 347.4 billion [5] - Adjusted net profit is projected to increase by 26% in 2024, reaching RMB 24.3 billion [5] - The company's smartphone business revenue is expected to grow by 19% in 2024, reaching RMB 187.3 billion [10] - The IoT and lifestyle products segment is projected to grow by 18% in 2024, reaching RMB 94.3 billion [11] - Internet services revenue is expected to grow by 12% in 2024, reaching RMB 33.9 billion [11] - The smart electric vehicle business is projected to generate RMB 30.4 billion in revenue in 2024, with a delivery target of 129,600 units [11] Valuation - Xiaomi's "Smartphone x AIoT" segment is valued at RMB 7,165 billion based on a 22x PE multiple for 2025E adjusted net profit of RMB 332 billion [5] - The smart electric vehicle and innovation business segment is valued at RMB 674 billion based on a 0.9x PS multiple for 2025E revenue of RMB 728 billion [5] - The target market capitalization for 2025E is RMB 7,839 billion (HK$ 847.5 billion), with a target price of HK$ 33.9 per share, representing a 21% upside [5]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group-W (1810 HK) with a target price of HKD 36.00 [4][9][12] Core Views - Xiaomi's stock price has risen 85% year-to-date, significantly outperforming the Hang Seng Tech Index by 67 percentage points [4] - The company's revenue is expected to grow 28% YoY in 3Q24, driven by its automotive and IoT businesses [4] - Xiaomi's SUV launch in 2025Q1 is anticipated to sustain rapid revenue growth, with Non-GAAP profit projected to increase by 55% in 2025 [4] - The new target price of HKD 36 includes an estimated valuation of HKD 8.7 per share for Xiaomi's automotive business [4][12] Smartphone/IoT/Internet Business - Xiaomi's smartphone shipments reached 42.8 million units in 3Q24, a 3.3% YoY increase, with a global market share of 13.5% [5] - Smartphone gross margin is expected to be 11.8% in 3Q24, pressured by rising raw material costs [5] - IoT revenue is projected to grow 20% YoY in 3Q24, with gross margin exceeding 20%, the highest since its IPO, driven by strong overseas and wearable product sales [5] - Internet business revenue is expected to grow 9.8% YoY in 3Q24, with gross margin remaining strong at 75% [5] Automotive Business - Xiaomi's automotive revenue is forecasted to exceed RMB 9 billion in 3Q24, a 42.8% QoQ increase [6] - Automotive shipments in 3Q24 are estimated to be close to 40,000 units, with gross margin improving to 17% [6] - The company's second-phase automotive factory is expected to be completed by June 2025, with total annual capacity potentially reaching 400,000 units [6] - Xiaomi's automotive business is projected to achieve breakeven in 2025, benefiting from economies of scale and reduced expense ratios [6] Financial Projections - Xiaomi's revenue for 2024E, 2025E, and 2026E is forecasted at RMB 348.2 billion, RMB 471.6 billion, and RMB 574.1 billion, respectively, representing YoY growth of 28.5%, 35.4%, and 21.8% [8] - Non-GAAP net profit for 2024E, 2025E, and 2026E is projected at RMB 24.7 billion, RMB 38.3 billion, and RMB 47.2 billion, respectively, with YoY growth of 27.9%, 55.4%, and 23.3% [8] - The company's PE ratio for 2025E is estimated at 16.69x, with a PB ratio of 3.03x [8] Valuation Methodology - The target price of HKD 36 is based on a SOTP valuation method, assuming a forward HKD/RMB exchange rate of 0.92 [12] - Xiaomi's existing businesses are valued at 17.3x 2025E PE, equivalent to HKD 27.3 per share, while the automotive business is valued at 2x 2025E PS, equivalent to HKD 8.7 per share [12][13] Industry Comparison - Xiaomi's 2025E PE ratio of 16.69x is lower than the industry average of 18.56x for comparable companies [14] - The company's automotive business valuation multiple of 2x 2025E PS is higher than the industry average of 0.86x, reflecting expectations of rapid growth and synergies with its smartphone business [14]