22 Aug 2024 CMB International Global Markets | Equity Research | Company Update Xiaomi (1810 HK) 2Q24 beat on EV GPM and resilient core earnings; Reiterate BUY Xiaomi delivered strong 2Q24 revenue/adj.net profit growth of 32%/20% YoY. Adj. net profit is 21%/27% ahead of our/consensus estimates, mainly driven by stronger EV/internet GPM and improving efficiency. Xiaomi reported its first EV business financials with a quarterly GPM at 15.7%, well above market expectation of 5-10%, and mgmt. guided QoQ GPM exp ...

Financial Data and Key Metrics - Total revenue for Q2 2024 reached RMB 88.9 billion, a year-on-year increase of 32%, marking a historical high [4] - Core business revenue (mobile phones and AIoT) was RMB 82.5 billion, up 23% year-on-year [4] - Gross profit margin stood at 20.7%, maintaining a healthy level above 20% [4] - Adjusted net profit was RMB 6.2 billion, up 20% year-on-year [5] - Smart EV segment generated revenue of RMB 6.4 billion with a gross profit margin of 15.4% [6] - Net loss from innovative businesses, including Smart EV, narrowed to RMB 1.8 billion [5] Business Line Performance - Smartphone business: Global market share increased by 1.8 percentage points to 14.6%, with significant growth in Latin America, Southeast Asia, and the Middle East [8] - IoT business: Revenue reached RMB 26.8 billion, achieving over 20% year-on-year growth for two consecutive quarters [10] - Smart EV: Delivered 27,307 units of Xiaomi SU7 in Q2, with retail sales exceeding 13,000 units in July [6] Market Performance - China revenue accounted for 57.2% of total revenue, while overseas revenue was 42.8% [14] - In 58 countries and regions, smartphone shipments were within the top 3, and in 70 countries, within the top 5 [8] - Global MAU (Monthly Active Users) for smartphones reached 676 million, a net increase of 69.8 million year-on-year [8] Strategic Direction and Industry Competition - The company is focusing on three growth curves: personal devices (mobile phones, tablets, wearables), large appliances (air conditioners, refrigerators, washing machines), and mobile equipment (vehicles) [12] - The "human times car times home" ecosystem strategy is unique and has begun to show cross-category synergy [13] - The company plans to expand its Smart EV sales and service network to 220 retail stores by the end of 2024, covering 59 cities [6] Management Commentary on Operating Environment and Future Outlook - The external environment in Q2 was marked by fierce competition and supply chain cost pressures, but the company performed steadily [4] - Management expressed confidence in the future of the Smart EV business, citing strong product competitiveness and cost control capabilities [7] - The company expects gross profit margins for Smart EV to improve further in the coming quarters [27] Other Important Information - The company has a cash reserve of RMB 141 billion as of June 30, 2024, up 24.5% year-on-year [22] - R&D expenses amounted to RMB 5.5 billion in Q2, up 20.7% year-on-year [20] - The company was included in the Fortune Global 500 list for the sixth consecutive year and received recognition for its ESG efforts [22] Q&A Session Summary Question 1: Smart EV Gross Profit Margin and New Retail Strategy - The high gross profit margin of 15.4% for Smart EV was attributed to strong supplier support, economies of scale, and effective management capabilities [25][26] - The company plans to expand its new retail model globally, with a target of opening 3,000 retail stores by the end of 2024 [28][29] Question 2: Smartphone Market Share and EV Competitive Strategy - The company's smartphone market share growth was driven by premiumization, technology strategy, and improved supply chain management [34] - For Smart EV, the focus will be on improving delivery capacity and cost efficiency rather than engaging in a price war [36] Question 3: Internet Business Gross Profit Margin and AI Capabilities - The increase in Internet business gross profit margin was due to user scale expansion, improved product structure, and higher overseas revenue share [42][43] - The company views current AI phones as "AI-feature phones" and plans to launch new products with more advanced AI capabilities in the coming months [44] Question 4: IoT Growth and Premiumization Strategy - IoT growth was driven by a shift to self-operation models for key categories like wearables and large home appliances, leading to better control over technology and supply chain [48] - The company is confident in its ability to compete in the RMB 6,000 to RMB 8,000 price range for smartphones but acknowledges challenges in the RMB 10,000+ segment [50] Question 5: Smart EV Delivery and Smart Factory Impact - The company is enhancing production capacity for Smart EV to meet increased demand and improve after-sales service [53] - Smart factory initiatives will focus on high-value-added categories like refrigerators, air conditioners, and washing machines, with 20% of production capacity to be built in-house [54][55]

Xiaomi Corporation Q2 2024 Results Announcement Disclaimer By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of Xiaomi Corporation (the "Company", and together with its subsidiaries, the "Group") for use in presentations by the Group and does not constitute a recommendation regarding the securities of the Group. No part of this presen ...

Revenue and Profit - Xiaomi's total revenue for Q2 2024 reached RMB 88.9 billion, a 32.0% YoY increase[2] - Xiaomi's adjusted net profit for Q2 2024 was RMB 6.2 billion, a 20.1% YoY increase[2] - Total revenue for Q2 2024 was RMB 88.89 billion, up from RMB 67.35 billion in Q2 2023[16] - Adjusted net profit under non-IFRS measures was RMB 6.18 billion in Q2 2024, compared to RMB 5.14 billion in Q2 2023[16] - Total revenue increased by 32.0% from RMB 67.4 billion in Q2 2023 to RMB 88.9 billion in Q2 2024[18] - Adjusted net profit increased by 20.1% from RMB 5.1 billion in Q2 2023 to RMB 6.2 billion in Q2 2024[44] - Revenue grew 32% YoY to RMB 88.89 billion in Q2 2024 and 29.6% YoY to RMB 164.39 billion in H1 2024[92] - Net profit attributable to equity holders increased 38.9% YoY to RMB 5.1 billion in Q2 2024 and 17.9% YoY to RMB 9.28 billion in H1 2024[92] - Net profit for Q2 2024 was RMB 5.1 billion, up from RMB 4.2 billion in Q1 2024[76] - Adjusted net profit decreased by 4.9% from RMB 6.5 billion in Q1 2024 to RMB 6.2 billion in Q2 2024[76] - Net profit for the period was RMB 9,242,881 thousand with a net profit margin of 5.6%[79] - Non-IFRS adjusted net profit for the period was RMB 12,666,355 thousand with a net profit margin of 7.7%[79] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 9,280,063 thousand, an increase from RMB 7,873,814 thousand in the same period in 2023[108] Smartphone Business - Xiaomi's global smartphone shipments in Q2 2024 were 42.2 million units, a 28.1% YoY growth[4] - Xiaomi's high-end smartphone shipments in mainland China accounted for 22.1% of total smartphone shipments in Q2 2024, a 2.0 percentage point YoY increase[5] - Xiaomi's global smartphone shipments in Q2 2024 were 42.2 million units, a 28.1% YoY increase, with a 14.6% global market share[8] - Smartphone revenue increased by 27.1% from RMB 36.6 billion in Q2 2023 to RMB 46.5 billion in Q2 2024, driven by a 28.1% increase in smartphone shipments[22] - Smartphone cost of sales increased by 28.8% from RMB 31.7 billion in Q2 2023 to RMB 40.9 billion in Q2 2024, driven by increased sales and higher component costs[30] - Smartphone gross margin decreased from 13.3% in Q2 2023 to 12.1% in Q2 2024 due to intensified competition in mainland China and rising core component costs[38] - Smartphone revenue remained stable at RMB 46.5 billion in Q2 2024, with shipments increasing by 3.8% to 42.2 million units, despite a 3.6% decrease in ASP to RMB 1,103.5 per unit[50] - Smartphone gross margin decreased to 12.1% in Q2 2024 from 14.8% in Q1 2024, impacted by promotional activities and rising component costs[67] - Smartphone segment revenue increased to RMB 46,516,412 thousand in Q2 2024, up from RMB 36,595,461 thousand in Q2 2023[101] IoT and Lifestyle Products - Xiaomi's AIoT platform connected devices (excluding smartphones, tablets, and laptops) grew to 822.2 million, a 25.6% YoY increase[4] - Xiaomi's IoT and lifestyle products revenue in Q2 2024 reached a record high of RMB 26.8 billion, a 20.3% YoY increase, with a gross margin of 19.7%[10] - Xiaomi's AIoT platform connected 822.2 million devices (excluding smartphones, tablets, and laptops) as of June 30, 2024, a 25.6% YoY increase[10] - IoT and lifestyle products revenue increased by 20.3% from RMB 22.3 billion in Q2 2023 to RMB 26.8 billion in Q2 2024, reaching a historical high[23] - IoT and lifestyle products cost of sales increased by 17.1% from RMB 18.3 billion in Q2 2023 to RMB 21.5 billion in Q2 2024, driven by increased sales[31] - IoT and lifestyle products gross margin increased from 17.6% in Q2 2023 to 19.7% in Q2 2024, driven by higher margins in wearable products and smart home appliances[38] - IoT and lifestyle products revenue reached a record high of RMB 26.8 billion in Q2 2024, up 31.3% QoQ, driven by strong growth in smart home appliances[51] - IoT and lifestyle products segment revenue grew to RMB 26,760,314 thousand in Q2 2024, compared to RMB 22,253,866 thousand in Q2 2023[101] Internet Services - Xiaomi's global monthly active users reached 675.8 million in June 2024, an 11.5% YoY increase[4] - Internet services revenue reached RMB 8.3 billion in Q2 2024, a record high with an 11.0% YoY increase and a gross margin of 78.3%[12] - Global monthly active users reached 675.8 million in June 2024, up 11.5% YoY, with mainland China monthly active users at 164.4 million, up 10.1% YoY[12] - Internet services revenue increased by 11.0% from RMB 7.4 billion in Q2 2023 to RMB 8.3 billion in Q2 2024, reaching a historical high[24] - Internet services gross margin rose from 74.1% in Q2 2023 to 78.3% in Q2 2024, primarily due to increased advertising revenue and higher advertising margins[38] - Internet services revenue hit a record high of RMB 8.3 billion in Q2 2024, up 2.7% QoQ, primarily due to increased advertising revenue[52] - Internet services gross margin improved to 78.3% in Q2 2024, up from 74.2% in Q1 2024, driven by higher advertising revenue[68] - Internet services segment revenue rose to RMB 8,265,611 thousand in Q2 2024, up from RMB 7,444,079 thousand in Q2 2023[101] Smart Electric Vehicle Business - Xiaomi SU7 series delivered 27,307 units in Q2 2024, aiming for 100,000 cumulative deliveries by November 2024 and 120,000 by year-end[6] - Smart electric vehicle business revenue reached RMB 6.2 billion in Q2 2024, with 27,307 Xiaomi SU7 series vehicles delivered[14] - Xiaomi SU7 series cumulative delivery target for 2024 is 120,000 vehicles, with 100,000 expected to be delivered by November 2024[14] - Xiaomi SU7 Ultra prototype features a 1,548PS tri-motor all-wheel drive system and debuted the second-generation Kirin battery[14] - Smart electric vehicle revenue in Q2 2024 was RMB 6.2 billion, with 27,307 Xiaomi SU7 series vehicles delivered[26] - Smart electric vehicle revenue surged to RMB 6.2 billion in Q2 2024, up significantly from RMB 18.4 million in Q1 2024[54] - Smart electric vehicles and other innovative businesses recorded a gross margin of 15.4% in Q2 2024[38] - Smart electric vehicle gross margin increased to 15.4% in Q2 2024 from 12.6% in Q1 2024[68] - Operating expenses for the smart electric vehicle and other innovative business segments in Q2 2024 were RMB 2.9 billion[69] - The company officially launched its smart electric vehicle business on March 28, 2024, impacting financial performance[98] - The smart electric vehicle business is now reported as a separate segment due to its distinct product and customer base[99] R&D and Innovation - Xiaomi's R&D expenditure reached RMB 5.5 billion in Q2 2024, a 20.7% YoY increase, with R&D personnel accounting for 48.7% of total employees[6] - R&D expenses increased by 20.7% from RMB 4.6 billion in Q2 2023 to RMB 5.5 billion in Q2 2024, mainly due to higher expenses related to smart electric vehicles and other innovative businesses[39] - R&D expenses increased by 6.6% from RMB 5.2 billion in Q1 2024 to RMB 5.5 billion in Q2 2024[70] - R&D expenses rose 20.7% YoY to RMB 5.5 billion in Q2 2024 and 22.9% YoY to RMB 10.66 billion in H1 2024[92] - Total employee count reached 37,525 as of June 30, 2024, with 18,290 in R&D roles[88] Overseas Market - Xiaomi's overseas market revenue in Q2 2024 was RMB 38.1 billion, accounting for 42.8% of total revenue[5] - Overseas internet services revenue grew by 32.9% YoY to RMB 2.7 billion in Q2 2024, accounting for 32.1% of total internet services revenue[13] - Global other regions contributed 42.8% of total revenue in Q2 2024, amounting to RMB 38,075,160 thousand[103] - Xiaomi Technology India Private Limited faces investigations and notices from Indian authorities regarding compliance with income tax, customs, and foreign exchange regulations, with INR 46,165,134,000 (approximately CNY 4,023,291,000) restricted as of June 30, 2024[117] Gross Margin and Costs - Xiaomi's overall gross margin in Q2 2024 was 20.7%, with the smartphone×AIoT segment at 21.1% and smart EV segment at 15.4%[7] - Total cost of sales increased by 32.5% from RMB 53.2 billion in Q2 2023 to RMB 70.5 billion in Q2 2024[26] - Gross profit increased by 29.9% from RMB 14.2 billion in Q2 2023 to RMB 18.4 billion in Q2 2024, with gross margin decreasing from 21.0% to 20.7%[34] - Total gross profit and gross margin for Q2 2024 were RMB 18.4 billion and 20.7%, respectively, compared to RMB 14.2 billion in Q2 2023[35] - Total cost of sales increased by 20.1% to RMB 70.5 billion in Q2 2024, with the smartphone segment accounting for 46.0% of total revenue[55][59] - Gross profit rose by 9.3% to RMB 18.4 billion in Q2 2024, while gross margin declined to 20.7% from 22.3% in Q1 2024[64] - Gross profit increased 29.9% YoY to RMB 18.39 billion in Q2 2024 and 36.8% YoY to RMB 35.22 billion in H1 2024[92] - Cost of goods sold and license fees for Q2 2024 were RMB 64,865,246 thousand, compared to RMB 47,641,858 thousand in Q2 2023[105] Cash and Financial Position - Xiaomi's adjusted net profit in Q2 2024 was RMB 6.2 billion, a 20.1% YoY increase, with cash reserves of RMB 141 billion as of June 30, 2024[7] - Total cash resources as of June 30, 2024, amounted to RMB 141 billion[84] - Cash and cash equivalents as of June 30, 2024, were RMB 39.3358 billion[83] - Operating cash flow for Q2 2024 was RMB 11.8176 billion[83] - Investment cash outflow for Q2 2024 was RMB 8.0019 billion[83] - Financing cash inflow for Q2 2024 was RMB 566.3 million[83] - Capital expenditures for Q2 2024 totaled RMB 1.4313 billion[87] - Total borrowings as of June 30, 2024, were RMB 30 billion[86] - Fair value changes of investments for the period ended June 30, 2024, were RMB 2,853,149 thousand[79] - Total investment portfolio value decreased by 3.4% YoY to RMB 65.4 billion as of June 30, 2024[88] - Company recorded RMB 300 million in after-tax net income from investment disposals in Q2 2024[88] - Total assets increased to RMB 342.18 billion as of June 30, 2024, up from RMB 324.25 billion as of December 31, 2023[94] - Property, plant, and equipment rose to RMB 15.78 billion, a 15% increase from RMB 13.72 billion at the end of 2023[94] - Long-term bank deposits surged to RMB 32.99 billion, an 80% increase from RMB 18.29 billion at the end of 2023[94] - Inventory grew to RMB 51.52 billion, up 16% from RMB 44.42 billion at the end of 2023[94] - Cash and cash equivalents increased to RMB 39.34 billion, up 17% from RMB 33.63 billion at the end of 2023[94] - Total equity rose to RMB 173.20 billion, up 5.4% from RMB 164.26 billion at the end of 2023[95] - Net cash from operating activities was RMB 2.53 billion, compared to RMB 20.16 billion in the same period of 2023[96] - Trade receivables and bills as of June 30, 2024, amounted to RMB 14,217,264 thousand, an increase from RMB 12,467,886 thousand as of December 31, 2023[112] - Inventory as of June 30, 2024, was RMB 54,082,758 thousand, up from RMB 46,599,233 thousand as of December 31, 2023[113] - Trade payables as of June 30, 2024, totaled RMB 66,772,473 thousand, compared to RMB 62,098,500 thousand as of December 31, 2023[116] - Short-term investments measured at fair value through profit or loss as of June 30, 2024, were RMB 18,561,997 thousand, down from RMB 20,193,662 thousand as of December 31, 2023[110] - Long-term investments measured at fair value through profit or loss as of June 30, 2024, were RMB 33,360,313 thousand, compared to RMB 34,444,516 thousand as of December 31, 2023[110] - The company's borrowings as of June 30, 2024, were RMB 21,037,527 thousand, a decrease from RMB 21,673,969 thousand as of December 31, 2023[114] - The credit loss provision for trade receivables and bills as of June 30, 2024, was RMB 568,448 thousand, up from RMB 316,958 thousand as of December 31, 2023[112] Sales and Marketing - Sales and marketing expenses grew by 31.8% from RMB 4.5 billion in Q2 2023 to RMB 5.9 billion in Q2 2024, driven by increased overseas logistics, advertising, and personnel costs[39] - Sales and promotion expenses rose by 7.6% from RMB 5.5 billion in Q1 2024 to RMB 5.9 billion in Q2 2024[71] Other Income and Expenses - Other income increased by 55.5% from RMB 200 million in Q2 2023 to RMB 300 million in Q2 2024, mainly due to higher government subsidies[41] - Other income increased by 82.5% from RMB 200 million in Q1 2024 to RMB 300 million in Q2 2024[72] - Financial income net decreased by 48.6% from RMB 1.5 billion in Q1 2024 to RMB 800 million in Q2 2024[74] - Income tax expenses increased by 53.4% from RMB 1.0 billion in Q1 2024 to RMB 1.6 billion in Q2 2024[75] - Other net gains/(losses) shifted from a loss of RMB 69.5 million in Q1 2024 to a gain of RMB 549.6 million in Q2 2024[73] - Employee benefits expenses for Q2 2024 were RMB 5,358,712 thousand, up from RMB 4,418,111 thousand in Q2 2023[105] - Current income tax expense for Q2 2024 was RMB 1,626,168 thousand, compared to RMB 1,476,060 thousand in Q2 2023[106] - Total compensation expenses increased by 3.4% QoQ to RMB 5.4 billion in Q2 2024[88] Share

Investment Rating - The report assigns a "Buy - A" rating to the company with a 6-month target price of HKD 20.57, based on a valuation of HKD 512.52 billion for 2024 [3][6]. Core Insights - The company is entering a growth cycle with its "people, car, home" ecosystem, leveraging its hardware, IoT, and automotive segments to enhance monetization efficiency [1][2]. - The "Iron Triangle" business model, which combines hardware acquisition, new retail strategies, and internet monetization, has established the company as a global technology player [1][2]. - The company achieved a global smartphone market share ranking in the top three, with overseas revenue accounting for 44.9% of total income in 2023 [1]. Summary by Sections Company Overview - The company was founded in April 2010 and focuses on smartphones, smart hardware, and IoT platforms, utilizing a business model that emphasizes hardware acquisition and internet monetization [10][11]. - The company has expanded its retail channels significantly, with over 10,600 physical stores by February 2023, enhancing its market reach [13]. Strategic Initiatives - The company is focusing on three main hardware terminals: smartphones, smart cars, and IoT products, which are all experiencing rapid growth [1][2]. - The first electric vehicle, Su7, received positive market feedback, with over 88,100 orders in its first month and expectations to exceed 100,000 deliveries by November 2024 [1][10]. Financial Performance - The company reported a revenue of HKD 755.07 billion in Q1 2024, a year-on-year increase of 26.95%, with adjusted net profit reaching a historical high [17][19]. - The revenue structure is diversifying, with smartphones contributing 58%, IoT and consumer products 30%, and internet services 11% in 2023 [19][20]. Market Position - The company has successfully positioned itself as a top-three global smartphone manufacturer, with a significant presence in international markets, particularly in Europe and Southeast Asia [24][26]. - The company is actively pursuing high-end market segments, with a notable increase in the sales proportion of high-end smartphones in China [27][28].

5 Aug 2024 CMB International Global Markets | Equity Research | Company Update Xiaomi (1810 HK) 2Q24E preview: expect resilient core earnings with better EV profitability; Reiterate BUY Xiaomi will report 2Q24 results in late August. We estimate 2Q revenue/adj. net income of RMB 89.2bn/5.1bn (+30%/flattish YoY), 6%/15% above consensus, mainly driven by strong smartphone sales, strength in AIoT/internet and better EV sales with improving profitability. Looking ahead into 2H24E, we are positive on Xiaomi's gl ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 24.29, reflecting a potential upside of 51.0% from the current price of HKD 16.08 [2][3][13]. Core Insights - The company is expected to report resilient core earnings and improved profitability in its electric vehicle (EV) segment, driven by strong smartphone sales and growth in AIoT and internet services [2][10]. - The global smartphone market share for the company has increased to 15%, with a year-on-year shipment growth of 27%, outperforming the industry average of 12% [2][3]. - The company anticipates a 30% year-on-year revenue growth for Q2 2024, with total revenue estimated at RMB 89.226 billion and adjusted net profit at RMB 4.459 billion [2][8]. Revenue and Profitability Summary - Revenue projections for FY24E are RMB 343.507 billion, with a year-on-year growth of 26.8%. Adjusted net profit is expected to reach RMB 21.785 billion, reflecting a 13% increase [3][10]. - The gross profit margin (GPM) for smartphones is projected to remain between 9% and 13%, while the GPM for AIoT is expected to be around 19.6% [2][10]. - The company’s adjusted earnings per share (EPS) for FY24E is estimated at RMB 0.88, with a consensus EPS of RMB 0.74, indicating a 19% higher projection than consensus [10][12]. Market Performance and Valuation - The company’s stock has shown a 31.8% increase over the past six months, outperforming the market [5]. - The report highlights that the current price-to-earnings (P/E) ratio is attractive at 17.0x for FY24E and 14.8x for FY25E [2][10]. - The valuation is based on a sum-of-the-parts (SOTP) approach, assigning a P/E of 15x for its smartphone, AIoT, and internet businesses, and a P/S of 0.75x for its EV business [13][14].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 19.12 HKD based on a 28x PE valuation for 2024 [1][6][3]. Core Insights - The company's smartphone shipments continue to show strong year-on-year growth, with a 27% increase in Q2 2024, reaching 42.3 million units, securing a 15% global market share [1]. - The company is focusing on high-end products, launching new models in its foldable smartphone series, which are designed to compete with flagship models [1]. - The establishment of new manufacturing facilities, including a 2.4 billion RMB factory in Changping with an annual capacity of 10 million flagship phones, indicates a commitment to smart manufacturing [1]. - The electric vehicle segment is also performing well, with the SU7 model expected to exceed 10,000 deliveries in July 2024, contributing to the company's "smart home" ecosystem [1]. Financial Forecast and Investment Recommendations - Earnings per share (EPS) are projected to be 0.62, 0.77, and 0.93 RMB for 2024, 2025, and 2026 respectively, reflecting adjustments in revenue and expense forecasts [1][6]. - The company's revenue is expected to recover, with a forecast of 336.97 billion RMB in 2024, representing a 24% year-on-year growth [2][11]. - The gross margin is anticipated to improve to 19.8% in 2024, with net profit margins also expected to rise [2][11].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 21.38, indicating a potential upside of 31.98% from the current price [2][74]. Core Insights - The company is positioned as a builder of a "human-vehicle-home ecosystem," with a focus on expanding its core business areas, including smartphones, IoT, and internet services, while also venturing into the automotive sector [1][5]. - The smartphone business remains stable, with a market share of 13.8% as of Q1 2024, and is expected to benefit from the 5G device upgrade cycle and AI-driven innovations [1][12]. - The IoT and lifestyle products segment is the world's leading consumer-grade AIoT platform, with significant growth potential as the company expands its overseas market presence [1][25]. - The internet services business is projected to enhance its monetization capabilities as the company penetrates the high-end market and expands its overseas user base [1][32]. - The automotive segment, marked by the launch of the Xiaomi SU7, is anticipated to drive a second growth curve for the company, with a delivery target of approximately 120,000 units for 2024 [1][37]. Summary by Sections Financial Performance - The company reported total revenue of RMB 270.97 billion in 2023, with a forecasted increase to RMB 332.86 billion in 2024, representing a year-on-year growth of 22.84% [3][74]. - Net profit for 2023 was RMB 17.47 billion, with projections of RMB 14.31 billion for 2024, reflecting a decrease due to ongoing investments in new business areas [3][74]. - The gross margin improved from 16.99% in 2019 to 21.21% in 2023, driven by a better revenue mix and strategic focus on profitability [64][66]. Business Segments Smartphone Business - The smartphone segment accounted for 61.6% of total revenue in Q1 2024, with a market share of 14% globally [12][15]. - The average selling price (ASP) of smartphones reached RMB 1,144.7, showing resilience despite market fluctuations [13][18]. IoT and Lifestyle Products - The IoT platform connects 786 million devices, with a user base of 15.2 million having five or more connected devices [25][28]. - The IoT segment is expected to generate revenue of RMB 902.3 billion to RMB 1,007.2 billion from 2024 to 2026 [72]. Internet Services - Internet services revenue is projected to grow from RMB 332.2 billion in 2024 to RMB 390.8 billion in 2026, driven by advertising and gaming services [72][33]. Automotive Business - The automotive segment aims to deliver 120,000 units in 2024, with revenue expectations of RMB 299 billion, increasing to RMB 800 billion by 2026 [72][37]. Strategic Initiatives - The company is implementing a high-end strategy to enhance brand image and expand into higher price segments, with over 20% of smartphone sales in the high-end category [18][20]. - The automotive business is positioned as a key growth driver, with significant investments in R&D and production capabilities [37][43]. - The integration of AI across all product lines is a strategic focus, enhancing user experience and operational efficiency [16][44].

深度报告 买入 品牌上行赋能全系产品,人车家进入正反馈通道 小米集团-W(1810.HK) 2024-7-22 星期一 | --- | --- | |----------|-------| | 目标价: | 21.1 | | 现 价: | 16.52 | | 预计升幅 | 27.7% | 重要数据 | --- | --- | |-----------------------------|------------| | 日期 | 2024.7.190 | | 收盘价(港元) | 16.526 | | 总股本(亿股) | 250.31 | | 总市值(亿港元) | 43109 | | 净资产(亿港元) | 1845.91 | | 总资产(亿港元) | 3606.8 | | 52 周高低(港元) | 20.35/11.9 | | 每股净资产(港元) | 7.066 | | 数据来源:Wind、国元证券经纪 | (香港)整理 | 主要股东 Smart Mobile HoLdings Limited 23.54% Apex Star LLC 8.6% 全球上一轮手机出货高峰在 2016 年,距今已有 8 年,换机需求不 ...