Core Viewpoint - Xiaomi is gaining attention in the electric vehicle (EV) market following the launch of its SU7 Series, with notable praise from Ford CEO Jim Farley, positioning the company as a strong competitor in the EV space despite its current minor role in overall financials [1][2][3]. Group 1: Company Overview - Xiaomi launched its SU7 Series in March 2024, marking its entry into the EV market [1]. - The company has reported deliveries of 27,307 vehicles from the SU7 Series and aims to deliver 100,000 vehicles by November 2024, with an updated goal of 120,000 for the year [4][6]. - Farley described Xiaomi as "an industry juggernaut" and emphasized its strength as a consumer brand compared to traditional car manufacturers [3]. Group 2: Financial Performance - In Q2 2024, Xiaomi reported total revenue of 88.9 billion yuan ($12.4 billion), with the EV segment contributing only 6.4 billion yuan ($893 million) [6]. - The gross margin for the EV segment was 15.4%, significantly lower than the 21.1% gross margin for the smartphone and AIoT segment [6][5]. - Despite the excitement around its EV offerings, they currently play a minor role in Xiaomi's overall operations, which are primarily focused on smartphones and AIoT [5]. Group 3: Market Position and Future Outlook - Farley's comments have sparked interest among EV investors, highlighting Xiaomi's successful product launch in contrast to Apple's halted EV project [7]. - While Xiaomi's EV offerings are not yet major contributors to its financial performance, they represent a potential growth area to monitor [7]. - For investors seeking immediate exposure to the Chinese EV market, alternatives like Nio and Li Auto are suggested, while a more conservative approach could involve electric car exchange-traded funds [8].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 29.40 HKD based on a 27x PE valuation for 2025 [2][5][8]. Core Insights - The company's smartphone shipments continue to grow year-on-year, with a 3% increase to 42.8 million units in Q3 2024, maintaining a 14% market share globally [1]. - The electric vehicle SU7 achieved over 20,000 deliveries in October, with expectations to meet the annual target of 100,000 units ahead of schedule [1]. - The launch of the Xiaomi Surge OS 2 marks a significant step towards an "AI full ecosystem," featuring innovations in system architecture and AI capabilities [1]. Financial Forecasts - Earnings per share (EPS) are projected to be 0.79, 1.00, and 1.26 CNY for 2024, 2025, and 2026 respectively, reflecting an upward adjustment from previous estimates [2][8]. - Revenue is expected to grow significantly, with forecasts of 347.3 billion CNY in 2024, 396.9 billion CNY in 2025, and 461.4 billion CNY in 2026, indicating a growth rate of 28% in 2024 [4][8]. - The gross margin is projected to stabilize around 20.9% in 2024, with net profit margins improving to 5.7% [4][8]. Market Performance - The company's stock has shown strong performance, with a 91.98% increase over the past 12 months, outperforming the Hang Seng Index [5]. - The stock price as of November 1, 2024, was 27.3 HKD, with a 52-week range of 27.45 to 11.84 HKD [5].

Investment Rating - The report provides a positive outlook on Xiaomi Group (1810), indicating a new starting point for the company as it accelerates its move towards high-end products [1]. Core Insights - The performance of the new Surge OS 2.0 has significantly improved, with core technologies such as HyperCore, HyperConnect, and HyperAI being upgraded to enhance user experience across devices [1]. - The Xiaomi 15 series and new AIoT products have generated considerable excitement in the industry, showcasing Xiaomi's commitment to innovation and high-quality offerings [1]. - The launch of the SU7 Ultra prototype car has elevated Xiaomi's brand image in the high-end market, with a competitive price point compared to luxury brands [1]. - Xiaomi plans to increase its R&D investment significantly, with expectations of over 24 billion yuan in 2024 and more than 30 billion yuan in 2025, to further enhance its technological capabilities [1]. - The automotive division is ramping up production, with October deliveries reaching 20,000 units, and the company is on track to meet its annual delivery target of 140,000 units [1]. Summary by Sections Company Overview - Xiaomi is focusing on high-end product development, with a strong emphasis on AI integration and user experience improvements through its new operating system [1]. Product Innovations - The Xiaomi 15 series features enhanced specifications and competitive pricing, while the introduction of various AIoT products demonstrates the company's commitment to meeting consumer needs [1]. Brand Development - The SU7 Ultra's record-setting performance has bolstered Xiaomi's high-end brand perception, with significant pre-orders indicating strong market interest [1]. Financial Outlook - The company anticipates improved margins in its automotive segment due to increased production efficiency and government subsidies for its core products [1].

Investment Rating - The report reiterates a "Buy" rating for Xiaomi Group-W (01810 HK) with a target price of 31 HKD [3][4] Core Views - Xiaomi Group released the Xiaomi 15 series smartphones, Xiaomi SU7 Ultra mass production version, and 16 other hardware and software products at its October 29th launch event [1] - Global smartphone shipments grew 4 0% YoY in Q3 2024 to 316 1 million units Xiaomi maintained its position as a top 3 global player with 42 8 million shipments and 13 5% market share [2] - Xiaomi's smartphone gross margin is expected to bottom out in Q3 2024 and improve thereafter as screen and memory cost increases stabilize [2] - The AIoT business is benefiting from China's home appliance trade-in subsidy program and overseas IoT expansion driving revenue growth [2] - Xiaomi SU7 deliveries exceeded 20 000 units in October 2024 and full-year deliveries are expected to reach 120 000 units [3] Financial Projections - Revenue is forecast to grow 28%/25%/16% YoY in 2024/2025/2026 to 347 8/434 5/504 3 billion RMB [3] - Non-GAAP net profit is projected at 31 7/35 4/40 5 billion RMB in 2024/2025/2026 representing 18%/12%/14% YoY growth [3] - The automotive business is expected to turn profitable in 2026 with 3 4 billion RMB in net profit after losses of 7 2/2 0 billion RMB in 2024/2025 [3] Business Segment Analysis - Smartphone revenue is forecast to grow 20%/8%/7% YoY in 2024/2025/2026 to 189 0/203 2/218 3 billion RMB with gross margin improving from 12 7% to 13 9% [13] - IoT and lifestyle products revenue is projected to increase 19%/11%/11% YoY in 2024/2025/2026 to 95 5/106 1/117 7 billion RMB with gross margin rising from 20 0% to 21 4% [13] - Internet services revenue is expected to grow 10%/7%/7% YoY in 2024/2025/2026 to 33 1/35 4/38 0 billion RMB maintaining a 75% gross margin [13] - Automotive revenue is forecast to surge from 27 2 billion RMB in 2024 to 127 8 billion RMB in 2026 with gross margin improving from 16 0% to 19 7% [13]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group (1810 HK) [3] Core Views - Xiaomi Group's 3Q24 revenue is expected to increase by 28 1% YoY to RMB 908 billion with Non-IFRS net profit projected to grow by 4% YoY to RMB 6 2 billion [2] - The IoT business is anticipated to see robust revenue growth exceeding 20% YoY in 3Q24 with毛利率 potentially surpassing 20% [2] - Xiaomi's automotive business achieved a milestone with 20 000 units delivered in October 2024 and the SU7 Ultra量产版 positioned in the premium segment with a pre-sale price of RMB 814 900 [2] - The company's 2024 R&D investment is expected to exceed RMB 14 billion [2] Market Data - Xiaomi Group's total market capitalization stands at HKD 6813 21 billion with a total share capital of 24 957 billion shares [1] - The stock's one-year low high range is HKD 11 84-27 45 with a three-month turnover rate of 72 5% [1] - The stock has shown strong performance with a 1M 3M and 1Y relative return of 26 8% 37 3% and 63 5% respectively [1] Financial Performance - Xiaomi's 3Q24 smartphone shipments are expected to increase by 3% YoY to 42 8 million units with ASP rising by 10% YoY to around RMB 1100 [2] - The company's 3Q24 smartphone毛利率 is projected to be at a yearly low of 11-12% but is expected to improve in 4Q24 [2] - The internet business is forecasted to maintain steady growth with a slight环比 decline in毛利率 due to seasonal advertising and e-commerce investments [2] Future Projections - Xiaomi's 2024-2026 Non-IFRS net profit forecasts have been上调 to RMB 238 289 and 347 billion respectively [2] - The company's 2024E 2025E and 2026E revenues are projected to be RMB 352 820 million RMB 427 584 million and RMB 488 526 million respectively [4] - The adjusted P E ratios for 2024E 2025E and 2026E are 26 21 and 18 respectively [4] Business Segments - The smartphone segment is expected to contribute RMB 188 481 million in 2024E followed by IoT and lifestyle products at RMB 98 609 million and internet services at RMB 33 198 million [4] - The automotive segment is projected to generate RMB 30 576 million in 2024E with significant growth expected in subsequent years [4] Financial Position - Xiaomi's total assets are forecasted to increase from RMB 273 507 million in 2022 to RMB 468 711 million in 2026 [5] - The company's cash and short-term investments are expected to grow from RMB 61 439 million in 2022 to RMB 175 823 million in 2026 [5] - Total liabilities are projected to rise from RMB 129 584 million in 2022 to RMB 236 881 million in 2026 [5] Cash Flow - Operating cash flow is expected to increase from RMB -4 390 million in 2022 to RMB 42 457 million in 2026 [6] - Free cash flow is projected to grow from RMB 3 247 million in 2022 to RMB 27 547 million in 2026 [6] - Net cash flow is forecasted to rise from RMB 3 304 million in 2022 to RMB 40 370 million in 2026 [6]

南向资金今日净买入约27亿港元 小米集团获净买入居前 财联社10月31日电，南向资金今日净买入26.83 亿港元。 港股通（沪）方面，腾讯控股、小米集团-W分别获净买入2.14亿港元、2.01亿港元；美团-W遭净卖出 2.51亿港元；港股通（深）方面，小米集团-W、腾讯控股分别获净买入4.6亿港元、3.2亿港元；吉利汽 车遭净卖出4.15亿港元。 ...

Chinese smartphone company Xiaomi on Tuesday announced a sports car version of its SU7 electric sedan would begin preorders for the equivalent of more than $110,000. BEIJING — China's Xiaomi said Tuesday that it had delivered more than 20,000 SU7 EVs in October as it ramps up production for its electric car venture in a fiercely competitive market. The Chinese company, which is largely known for its smartphones and home appliances, reiterated plans to deliver 100,000 SU7 vehicles by the end of November. Xia ...

Investment Rating - The report assigns an "Outperform" rating to the company [5][8]. Core Insights - The company has shown significant growth in adjusted net profit and cash reserves, with a historical high cash reserve of 136.3 billion yuan as of 2023 [6][8]. - The gross margin has steadily improved, indicating a recovery in profitability, with a gross margin of 21.21% in 2023, up 4.22 percentage points year-on-year [6][8]. - The company is focusing on global market opportunities, with domestic and overseas revenues showing strong growth in the first half of 2024 [6][8]. - The automotive business is highlighted as a key area of growth, with the launch of the Xiaomi SU7 series electric vehicles [6][8]. Financial Performance Summary - In 2023, the company reported operating revenue of 271 billion yuan, a decrease of 3.2% year-on-year, but adjusted net profit increased by 126.3% to 19.3 billion yuan [6][8]. - For the first half of 2024, operating revenue reached 164.4 billion yuan, a year-on-year increase of 29.6%, with adjusted net profit rising by 51.3% to 12.7 billion yuan [6][8]. - The company expects revenue growth of 16% in 2024, with a projected operating revenue of 314.7 billion yuan [12][33]. Business Segment Analysis 1) **Smartphone Business** - The smartphone segment generated revenue of 93 billion yuan in the first half of 2024, reflecting a year-on-year increase of 29.9% [13][15]. - The company aims for gradual revenue recovery in this segment, with expected growth rates of 4.1% to 6.1% from 2024 to 2026 [13][15]. 2) **IoT and Consumer Products** - Revenue from IoT and consumer products reached a record high of 47.1 billion yuan in the first half of 2024, growing by 20.6% year-on-year [15][18]. - The segment is expected to see continued growth, with projected revenue increases of 13% to 14% from 2024 to 2026 [15][18]. 3) **Internet Services** - Internet services revenue reached 16.3 billion yuan in the first half of 2024, marking a 12.7% increase year-on-year [19][22]. - The segment is anticipated to maintain growth, with expected revenue increases of 3% to 4% from 2024 to 2026 [19][22]. 4) **Automotive Business** - The automotive segment generated 6.4 billion yuan in revenue in the second quarter of 2024, with expectations to deliver 120,000 vehicles by the end of the year [22][26]. - Revenue projections for the automotive business are set at 25.85 billion yuan for 2024, with significant growth anticipated in subsequent years [22][26]. Valuation and Market Outlook - The report estimates the company's total market value to be between 613.33 billion and 698.35 billion HKD, with a target price range of 24.58 to 27.98 HKD per share [8][33]. - The valuation is based on a combination of price-to-earnings (PE) and price-to-sales (PS) ratios for different business segments [8][33].

Financial Performance - Revenue for the first half of 2024 reached 164,394.7 million, a 29.6% increase compared to the same period in 2023[12] - Operating profit for the first half of 2024 was 35,223.9 million, up 36.8% year-over-year[12] - Net profit for the first half of 2024 was 9,571.8 million, a slight decrease of 3.7% compared to the same period in 2023[12] - Total revenue for 2024 Q2 reached $164.4 billion, a 29.6% increase compared to $126.8 billion in 2023 Q2[31] - Operating profit for 2024 Q2 was $9.2 billion, up from $7.9 billion in 2023 Q2[29] - Net profit attributable to shareholders increased to $12.7 billion in 2024 Q2, compared to $8.4 billion in 2023 Q2[29] - Revenue for the six months ended June 30, 2024, reached $88,887,828, a significant increase from $67,354,908 in the same period in 2023[129] - Net profit for the first half of 2024 was $18,394,177, up from $14,161,016 in the first half of 2023[129] - Revenue for the period ending June 30, 2024, reached $173.2 billion, with a net income of $624.1 million[133] - Revenue for the period ending June 30, 2024, reached $60.7 billion, with a net income of $15.26 billion[134] - Revenue for the period ending June 30, 2024, was 5,021,874, compared to 21,430,534 in the same period in 2023[135] - Net profit for the period ending June 30, 2024, was 2,530,575, compared to 20,162,011 in the same period in 2023[135] - Revenue for Q1 2024 reached $63 billion, reflecting a 34% year-over-year growth[138] - Revenue for the period reached $54,207,368, showing an increase compared to the previous year's $51,432,588[153] - Revenue for the first half of 2024 reached 20,193,662, a significant increase compared to 9,845,910 in the same period of 2023[155] - Revenue for 2024 reached $88,887,828, showing a significant increase compared to $67,354,908 in 2023[164] - Total revenue for the first half of 2024 was $164,394,650, compared to $126,832,042 in the same period of 2023[165] - Net profit for the first half of 2024 was $35,223,894, an increase from $25,752,583 in the first half of 2023[165] - Revenue from AIoT segment increased to $50.36 million in Q2 2024, up from $44.35 million in Q2 2023, reflecting a growth of 13.5%[170] - Total revenue for Q2 2024 reached $51.52 million, compared to $44.42 million in Q2 2023, showing a 16% increase[170] - Net profit for Q2 2024 was $549,628, a significant rise from $71,223 in Q2 2023, marking a 671% increase[172] - Total revenue for the period ending June 30, 2024, was 6,922,241, compared to 7,932,192 for the same period in 2023[176] - Revenue for the period ending June 30, 2024, was RMB 25,450,645, showing a slight increase compared to RMB 25,193,143 in the same period last year[183] IoT and AIoT Segment - The company's IoT and lifestyle products segment achieved revenue of 11,901.8 million, a 14.2% increase year-over-year[12] - The company's AIoT platform connected devices reached 17 million units as of June 30, 2024[13] - The company plans to expand its AIoT ecosystem and enhance its smart home product offerings in the second half of 2024[13] - AIoT revenue reached 1,580 million, accounting for 29.6% of total revenue in 2024[14] - IoT platform connected devices increased by 25.6% year-over-year to 822.2 million as of June 30, 2024[15] - Xiaomi's AIoT platform active users reached 12,000 as of June 30, 2024[15] - Xiaomi's AIoT platform grew by 21.7% year-over-year in 2024, with smart home devices contributing 15.4% to the growth[18] - Xiaomi's AIoT platform connected devices reached 18,290 units, a 48.7% increase year-over-year as of June 30, 2024[16] - Xiaomi's AIoT platform achieved a 100% year-over-year growth in connected devices in the smart home category[16] - Xiaomi's AIoT platform achieved a 127% year-over-year growth in connected devices, reaching 1,410 million units as of June 30, 2024[18] - AIoT segment revenue reached 1,580 million, a year-over-year increase of 24.6%, with a gross margin of 21.7%[19] - IoT and lifestyle products revenue reached 471 million, a year-over-year increase of 20.6%, with a gross margin of 19.8%[21] - IoT and lifestyle products achieved a 100% year-over-year growth in certain categories, including smart home devices[21] - AIoT platform revenue reached 822.2 million, a year-over-year increase of 25.6%[22] - Monthly active users (MAU) of the AIoT platform reached 96.9 million, a year-over-year increase of 16.8%[22] - Revenue from smart home products grew by 45% year-over-year, reaching 4.0 billion[22] - Revenue from wearable devices increased by 35% year-over-year, reaching 1.1 billion[22] - Revenue from IoT and lifestyle products grew by 35% year-over-year, reaching 0.7 billion[22] - AIoT segment revenue grew to $158.0 billion in 2024 Q2, accounting for 96.1% of total revenue, up from $126.8 billion in 2023 Q2[32] - IoT and lifestyle products revenue increased to $47.1 billion in 2024 Q2, representing 28.7% of total revenue, compared to $39.1 billion in 2023 Q2[34] - Revenue from AIoT products increased by 22.4% to 1,238 million in 2024 compared to 1,011 million in 2023[42] - IoT and lifestyle products revenue rose by 16.2% to 378 million in 2024 from 325 million in 2023[45] - Total revenue from AIoT and lifestyle products reached 123,759.0 million, accounting for 75.3% of total revenue in 2024[43] - AIoT segment revenue increased to $34.24 billion in 2024, up 21.7% from $25.75 billion in 2023, with a margin improvement from 20.3% to 21.7%[48][49][50] - IoT platform and solutions revenue grew to $9.33 billion in 2024, up 19.8% from $6.56 billion in 2023, with margin expanding from 16.8% to 19.8%[51] - Smart home business revenue reached $12.45 billion in 2024, up 76.3% from $10.60 billion in 2023, with margin improving from 73.2% to 76.3%[51] - AIoT segment revenue growth reached 73% year-over-year, driven by IoT and smart device integration[161] - IoT and smart device revenue increased by 15% quarter-over-quarter, contributing significantly to overall growth[162] - The company plans to expand its AIoT ecosystem, focusing on IoT-enabled devices and smart home solutions[161] - New product launches in the AIoT segment are expected to drive a 20% revenue increase in the next fiscal year[162] - The company's IoT platform now supports over 10 million connected devices, a 25% increase from the previous quarter[161] - Revenue from smart home devices grew by 18% year-over-year, with a strong focus on energy-efficient solutions[162] - The company is investing $500 million in R&D for next-gen AIoT technologies, aiming for a 30% market share by 2025[161] - Strategic partnerships in the AIoT space are expected to contribute $200 million in additional revenue over the next two years[162] - The company's IoT-enabled industrial solutions saw a 22% increase in adoption, driven by demand for automation[161] - The AIoT segment is projected to account for 40% of the company's total revenue by the end of 2024[162] - IoT and AIoT segments contributed $50,812,668 (57.2%) to total revenue in 2024, up from $39,585,960 (58.8%) in 2023[167] - Revenue from IoT and AIoT segments in the first half of 2024 was $88,446,741 (53.8%), up from $72,077,944 (56.8%) in the same period of 2023[167] Smartphone Segment - Revenue from the smartphone segment was 9,242.9 million, up 17.3% compared to the first half of 2023[12] - The company's global smartphone market share increased to 17.3% in Q2 2024, up from 15.6% in Q2 2023[12] - Smartphone revenue grew by 30.8% year-over-year to 82.8 billion in 2024[15] - Xiaomi's global smartphone market share reached 14.2% in 2024[15] - Xiaomi's premium smartphone segment (priced above 3,000 RMB) revenue increased by 21.9% year-over-year[15] - Smartphone revenue rose to $93.0 billion in 2024 Q2, a 29.9% increase from $71.6 billion in 2023 Q2, with a 10.8% market share in global smartphone shipments[35] - Smartphone revenue grew by 28.2% to 805 million in 2024 from 628 million in 2023[44] - Smartphone shipments increased by 40.5% in 2024, with a market share of 69.0% in the global market[37] - Smartphone shipments in the second quarter of 2024 reached 16.1 million units, a year-over-year increase of 24.2%[22] - Smartphone ASP (Average Selling Price) slightly decreased to $1,123.7 in 2024 Q2 from $1,131.1 in 2023 Q2[35] - Smartphone shipments increased to 23 million units in 2024, up 379.8% from 5 million units in 2023, driven by new product launches and market expansion[58] - The company's global smartphone market share reached 21.4% in 2024, a year-over-year increase of 51.3%[18] R&D and Innovation - The company's R&D investment in the first half of 2024 reached 12,666.4 million, a 51.3% increase compared to the same period in 2023[12] - Xiaomi's R&D expenses for 2024 are projected to be between 3,000 to 6,000 million RMB[15] - R&D expenses for 2024 Q2 were $10.7 billion, up from $8.7 billion in 2023 Q2[29] - R&D expenses for new technologies and products reached $983.1 million in 2024, accounting for 15.4% of total revenue[48][51] - Total R&D investment in 2024 was $1.07 billion, up 22.9% from $870 million in 2023, driven by increased focus on AI and IoT technologies[52] - Research and development expenses increased to $5,497,729 in the first half of 2024, up from $4,554,803 in the first half of 2023[129] - Research and development expenses for new technologies and products amounted to $1.52 billion, representing a 15% increase from the previous year[134] - The company plans to invest $500 million in new technology R&D, focusing on AI and blockchain, by the end of 2024[123] - The company is investing heavily in R&D, with a 20% increase in R&D expenditure compared to the previous year, aiming to innovate in AI and machine learning technologies[178] - Research and development expenses for Q2 2024 were $1.71 million, up from $881,462 in Q2 2023, reflecting a 93.5% increase[173] Market Expansion and Strategy - The company plans to expand its product lineup with new models like Xiaomi MIX Fold 4, Xiaomi MIX Flip, and Redmi K70 Ultra[19] - The company is focusing on new strategies including market expansion, mergers and acquisitions, and technological innovation[19] - Overseas market expansion contributed $1.14 billion in revenue in 2024, up 32.6% from $860 million in 2023, with a focus on Southeast Asia and Europe[53] - Emerging market revenue grew to $270 million in 2024, up 38.8% from $230 million in 2023, driven by strategic partnerships and local adaptations[54] - The company plans to expand its market presence through new product launches and technological advancements, focusing on smart mobile solutions[60] - The company's investment in new technologies and market expansion strategies is expected to drive future growth, with a focus on smart mobile solutions[60] - The company's market expansion strategy resulted in a 10% increase in market share[72] - The company's new product launch contributed to a 48% increase in sales[76] - The company's customer base grew by 32% compared to the previous year[76] - The company is exploring mergers and acquisitions to strengthen its market position and drive future growth[157][159] - The company is focusing on improving its product offerings and user experience to drive higher engagement and retention rates[160] - The company plans to expand into three new international markets in the next fiscal year, targeting a 20% increase in global market share[134] - A new product line is expected to launch in Q4 2024, with projected revenue of $2.1 billion in the first year[134] - The company completed a strategic acquisition worth $446.2 million, aimed at enhancing its technological capabilities[134] - The company is focusing on expanding its market presence in Southeast Asia, with a projected revenue increase of 10% from this region by the end of 2024[178] - A new strategic partnership is expected to contribute an additional $200 million in revenue by the end of 2024, enhancing the company's market position[178] - The company is planning a major acquisition in the fintech sector, expected to close by the end of 2024, which will significantly enhance its service offerings[179] Electric Vehicle Segment - Xiaomi SU7 electric vehicle sales reached 27,367 units in 2024[15] - Xiaomi SU7 electric vehicle achieved 27,367 units delivered in the first half of 2024, with a target of 100,000 units by November 2024 and 120,000 units by the end of 2024[16] - Xiaomi SU7 achieved 27,367 units sold in the first quarter of 2024, with a target to reach 100,000 units by November 2024 and 120,000 units by the end of 2024[25] - Xiaomi SU7 Ultra is set to launch in October 2024, featuring a 0-100 km/h acceleration in 2.5 seconds and a range of 1,548 km[25] - Xiaomi plans to expand its OTA (Over-the-Air) updates for Xiaomi SU7, with NOA (Navigation on Autopilot) functionality expected to be available by August 2024[26] - Xiaomi SU7 is expected to receive a major OTA update in August 2024, enhancing its autonomous driving capabilities[26] - Xiaomi SU7 Ultra will feature advanced AIoT (Artificial Intelligence of Things) integration, targeting a 100% renewable energy supply chain by 2035[27] - Xiaomi SU7 is projected to achieve a 15.4% market share in the electric vehicle segment by the end of 2024[25] - Xiaomi SU7 Ultra will be equipped with V8s and V6s engines, targeting a 100% renewable energy supply chain by 2035[25] - The company's new electric vehicle, Xiaomi SU7, is expected to ship 27,367 units in 2024 with an ASP of 228,815[39] ESG and Sustainability - Xiaomi aims to achieve 100% renewable energy usage in its operations by 2035 and 100% carbon neutrality in its supply chain by 2040[27] - Xiaomi's ESG (Environmental, Social, and Governance) initiatives include a commitment to reduce carbon emissions and achieve a 100% renewable energy supply chain by 2035[27] - Xiaomi's ESG performance in 2023 was recognized by Institutional Investor, ranking among the top 500 in ESG ratings[27] - ESG initiatives are projected to reduce carbon emissions by 30% by 2026, aligning with global sustainability goals[122] - Revenue from ESG-related initiatives increased by 15% year-over-year, reaching $1.2 billion[121] Product Launches and Features - Xiaomi MIX Fold 4 features a 2.0-inch outer screen with a 34% increase in screen-to-body ratio and a 16% improvement in battery life[20] - Xiaomi MIX Flip has a 4.01-inch outer screen and a 200% increase in battery capacity compared to previous models[20] - Redmi K70 series features MediaTek Dimensity 9300+ chipset and supports up to 24GB RAM and 1TB storage[20] - The company launched the Xiaomi Watch S4 Sport in July 202

Investment Rating - The investment rating for the company is "Accumulate" [3]. Core Insights - In the first half of 2024, the company achieved a revenue of 164.395 billion yuan, representing a year-on-year growth of 29.62%. In Q2 alone, revenue reached 88.888 billion yuan, up 31.97% year-on-year. The net profit attributable to shareholders for the first half was 9.28 billion yuan, a 17.86% increase year-on-year, with Q2 net profit at 5.098 billion yuan, growing 38.91% year-on-year [2]. - The overall gross margin for the first half was 21.43%, an increase of 1.12% year-on-year. The sales expense ratio, management expense ratio, and R&D expense ratio were 6.92%, 1.65%, and 6.48%, respectively, with management and R&D expense ratios declining year-on-year [2]. - The company launched its first smart electric vehicle, the Xiaomi SU7 series, in March 2024, generating approximately 6.4 billion yuan in revenue in Q2, with a gross margin of 15.4% [2]. Summary by Sections Financial Performance - The company reported a total revenue of 164.395 billion yuan for H1 2024, with a 29.62% year-on-year increase. Q2 revenue was 88.888 billion yuan, up 31.97% year-on-year. The net profit attributable to shareholders for H1 was 9.28 billion yuan, a 17.86% increase, with Q2 net profit at 5.098 billion yuan, growing 38.91% year-on-year [2]. - The gross margin for H1 was 21.43%, up 1.12% year-on-year. The sales expense ratio increased slightly, while management and R&D expense ratios decreased [2]. Business Segments - In Q2, smartphone revenue was 46.5 billion yuan, a 27.1% year-on-year increase, with a shipment of 42.2 million units, up 28.1% year-on-year. The gross margin for smartphones was 12.1%, down 1.2% due to market competition and component price increases [2]. - The Internet of Things (IoT) and lifestyle products generated 26.8 billion yuan in Q2, a 20.3% year-on-year increase, with a gross margin of 19.7% [2]. - The internet services segment reported revenue of 8.3 billion yuan in Q2, an 11.0% year-on-year increase, with a gross margin of 78.3% [2]. Future Outlook - The company has updated its revenue forecasts, expecting revenues of 351.49 billion yuan, 389.75 billion yuan, and 434.56 billion yuan for 2024, 2025, and 2026, respectively. The net profit forecasts are 20.442 billion yuan, 22.992 billion yuan, and 26.195 billion yuan for the same years [6][7].