Investment Rating - The report assigns an "Accumulate" rating to Xiaomi Group-W (1810) with a target price of HKD 20.0 [1][4]. Core Views - The report anticipates stable growth in Xiaomi's smartphone business, continued growth in IoT and internet services, and the initiation of revenue generation from the automotive business. The adjusted net profit for FY24Q2 is expected to be RMB 4.35 billion [3][4]. Summary by Sections Revenue and Profit Forecast - The revenue for FY2024 and FY2025 is adjusted to RMB 337 billion and RMB 384.5 billion respectively, representing year-on-year growth of 24.4% and 14.1%. The adjusted net profit is projected to be RMB 19.6 billion and RMB 20.2 billion, with year-on-year growth of 1.8% and 3.1% [4][8]. Q2 FY24 Performance Expectations - For FY24Q2, the expected revenue is RMB 86.5 billion, reflecting a year-on-year increase of 28.4%. The smartphone revenue is projected at RMB 45.7 billion (up 25% YoY), IoT revenue at RMB 24.9 billion (up 12% YoY), and internet services revenue at RMB 8 billion (up 7.5% YoY) [4][8]. Automotive Business Insights - Xiaomi's automotive business is expected to deliver over 25,000 units in FY24Q2, generating more than RMB 6 billion in revenue. The projected delivery volumes for 2024 and 2025 are 111,000 units and 195,000 units, with corresponding revenues of RMB 27.8 billion and RMB 58.9 billion. However, a loss of RMB 11 billion is anticipated for the automotive business in 2024 due to initial R&D and operational costs [4][8][9]. Smartphone Business Analysis - The smartphone segment is expected to maintain a market share of 15% in China, with a stable performance across low-end, mid-range, and high-end models. Xiaomi's competitive edge lies in its technological innovation at comparable price points and successful expansion into overseas markets [4][8]. IoT and Internet Services Growth - The IoT business is projected to generate RMB 24.9 billion in FY24Q2, benefiting from peak air conditioning sales. Xiaomi's R&D expenditure reached RMB 19.1 billion in 2023, supporting continuous innovation in IoT products. The internet services segment is expected to earn RMB 8 billion in FY24Q2, driven by a strong user base and enhanced platform efficiency [4][9].

Investment Rating - The report maintains a "BUY" rating for Xiaomi with a target price (TP) of HK$25.39, implying a potential upside of 53.5% from the current price of HK$16.54 [5][14]. Core Insights - The growth outlook for Xiaomi remains intact despite market concerns regarding margin impacts from rising memory prices and competition from the AI iPhone launch. The company is expected to continue gaining global smartphone market share, strengthen its AIoT sales, and ramp up EV shipments [2][3]. - Management has reiterated the annual delivery target of 120,000 units for the SU7 EV, with production capacity increasing to 20,000 units per month [3]. - Xiaomi aims to achieve a shipment target of 165 million smartphones in 2024, up from 146 million in 2023, supported by overseas expansion in various regions [3]. Financial Summary - Revenue for FY23 was RMB 270,970 million, with a projected increase to RMB 337,161 million in FY24, representing a year-on-year growth of 24.4% [4][17]. - Adjusted net profit for FY23 was RMB 19,273 million, expected to rise to RMB 22,974 million in FY24, reflecting a growth of 19.2% [4][17]. - The earnings per share (EPS) is projected to increase from RMB 0.77 in FY23 to RMB 0.92 in FY24 [4][17]. Earnings Forecast - The report outlines a revenue breakdown for FY24E, with smartphones contributing RMB 185,020 million, IoT and lifestyle products at RMB 93,264 million, and internet services at RMB 32,856 million [12][13]. - Gross profit margin is expected to stabilize around 21.1% for FY24E, with smartphone margins slightly declining due to memory cost pressures [12][13]. Valuation - The valuation methodology includes assigning a P/E multiple of 15x for Xiaomi's smartphone, AIoT, and internet businesses, while the EV business is valued at 0.75x FY25E P/S [14][15]. - The total valuation for Xiaomi is estimated at RMB 581,175 million, with a target price of HK$25.39 based on the sum-of-the-parts (SOTP) analysis [14][15].

证券研究报告·港股公司简评 消费电子 24Q1 业绩：利润创单季新高，汽车业务 小米集团-W(1810.HK) 全年交付目标冲刺 12 万台 核心观点 维持 买入 小米24Q1营收为75.5亿元（YoY+27%），其中手机、IoT、互联网 崔世峰 收入分别预计为465/204/80亿元（YoY+33%/+21%/+14.5%）；整体 cuishifeng@csc.com.cn 毛利率由于IoT毛利率创新高+高毛利的互联网业务强劲，环比持 SAC 编号:S1440521100004 续提升至 22.3%（YoY+2.8 pct）；Q1 调后净利润大超预期为 64.9 SFC 编号:BUI663 亿元（beat consensus 34%），YoY+100.8%，造车等创新业务费用为 发布日期： 2024年06月04日 23 亿元，对应核心业务调后净利润为 88 亿元，YoY+103%。SU7 目前处于以产定销状态，24年目标交付10万台，挑战12万台。 当前股价： 17.90港元 目标价格6个月： 22.9港元 简评 主要数据 手机业务：出货量增长强劲，毛利率稳健。24Q1小米手机出货量 股票价格绝对/相对市场 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 21.44 HKD based on a 33x PE valuation for 2024 [2][6]. Core Insights - In Q1 2024, the company's revenue reached 75.5 billion RMB, a year-on-year increase of 27%, with adjusted net profit hitting 6.5 billion RMB, a 100.8% increase, marking a historical high [1]. - The smartphone segment showed significant growth, with revenue of 46.5 billion RMB, up 33% year-on-year, and a gross margin of approximately 15%, an increase of 3.6 percentage points [1]. - The IoT and lifestyle products continued to grow, generating 20.4 billion RMB in revenue, a 21% increase year-on-year, with a gross margin of about 20% [1]. - Internet services also saw revenue growth, reaching 8 billion RMB, a 15% year-on-year increase, with a gross margin of 74% [1]. - The demand for the smart electric vehicle SU7 is strong, with 10,000 units delivered by mid-May 2024 [1]. Financial Summary - The company forecasts earnings per share (EPS) of 0.60, 0.73, and 0.85 RMB for 2024, 2025, and 2026 respectively, with revenue projections of 328.62 billion RMB for 2024, 376.16 billion RMB for 2025, and 432.45 billion RMB for 2026 [3][6]. - The gross margin is expected to be 21.2% in 2024, with net profit margin projected at 6.4% [3][9]. - The company’s total assets are projected to grow from 324.25 billion RMB in 2024 to 450.59 billion RMB by 2026 [9].

同比增长10.6%我们在中国大陆手机越火用户也达到了1.6个亿同比增长9.7%为我们的互联网业务的增长带来了强劲的动力未来我们将持续建设安全高效的全球经营平台我们也会开始探索小米机家模式在国际市场 为我们多个品类的IoT以及我们的汽车未来的出发建立一个基础也是对我们国际未来发展的都路铺了一个很好的基础在汽车的业务也说一下汽车业务因为我们在今年的3月28号我们发布了首款电动汽车是一个C级高性能的生态科技小车我们叫小米舒契 在我们推出之前,我们是通过一系列的消费者公策力,也是我们自己的产品力,以及我们做到了端到端的全策资源,通过各种各种的初试,成为了一个百万网友严选的一辆好车。我们也公告了这个数字,截至4月31日。 我们的书期的首月所单量达到88063台我们在4月首月交付了7058台5月15日我们完成了第一万台的交付所以完成了我们对用户的承诺就是发布及上市上市及交付 交付及上量为了满足了我们的用户的提前交付的强烈需求我们的工厂 也是在全力提速我们在Pro版已经在5月18日开始交付比我们预计的时间提前了十多天同时我们在商周四也说了我们会计划在6月开始提拉到双班生产我们有信心在6月份当月交付超过1万台我们也说了我们确 ...

Summary of Conference Call Transcript Company and Industry - The transcript discusses the performance of a technology company, specifically in the smartphone and internet services sector in mainland China. Core Points and Arguments - The company reported a year-on-year revenue growth of 10.6% [1] - The number of smartphone users in mainland China reached 160 million, reflecting a year-on-year increase of 9.7% [2] - The growth in internet services is attributed to the strong performance in the smartphone segment [3] - The company plans to continue building a safe and efficient global operating platform [4] - There are intentions to explore the Xiaomi box model in international markets [5] Other Important but Possibly Overlooked Content - The focus on expanding internet services indicates a strategic shift towards enhancing digital offerings alongside hardware sales [6] - The mention of a global operating platform suggests potential for international expansion and operational efficiency improvements [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - In Q1 2024, the company achieved a record high profit with a revenue of 75.5 billion, representing a year-on-year growth of 27%, and an adjusted net profit of 6.49 billion, which is a 100.75% increase year-on-year [1] - The gross margin for the quarter was 22.29%, up 2.8 percentage points year-on-year and 0.97 percentage points quarter-on-quarter [1] - The smartphone business saw a significant revenue increase of 33% year-on-year, with global shipments reaching 40.6 million units, a 33.7% increase [1] - The AIoT business revenue grew by 21% year-on-year, with the total number of connected devices reaching 786 million, a 27% increase [1] - The internet business revenue was 8.048 billion, up 14.5% year-on-year, with overseas revenue growing by 39% [1] - The automotive business is set to expand production in June, aiming for a total delivery of 100,000 vehicles in 2024 [1] Financial Performance Summary - For 2024, 2025, and 2026, the company is expected to generate revenues of 332.3 billion, 380.5 billion, and 422.8 billion respectively, with year-on-year growth rates of 22.6%, 14.5%, and 11.1% [1] - The adjusted net profit forecast for the same years is 17.26 billion, 19.59 billion, and 20.88 billion, with year-on-year changes of -10.4%, +13.5%, and +6.6% [1] - The company’s earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.69, 0.55, and 0.61 respectively [4]

Investment Rating - Maintain "Buy" rating with a target price of HKD 23 [2][3] Core Views - Xiaomi Group's 2024Q1 revenue reached RMB 75.5 billion, a YoY increase of 27%, with adjusted net profit exceeding expectations at RMB 6.5 billion, up 101% YoY [1] - The core business adjusted net profit (excluding EV and other innovation expenses) was RMB 9 billion, better than expected [1] - Xiaomi's smartphone market share increased to 14% in 2024Q1, with shipments of 40.6 million units, up 34% YoY [1] - The company raised its 2024 SU7 delivery target from 100,000 to 120,000 units, with expected car gross margins of 5-10%, exceeding market expectations [2] Business Segments Smartphones - Smartphone revenue in 2024Q1 was RMB 46.5 billion, up 33% YoY, with a gross margin of 14.8%, an increase of 3.6 percentage points YoY [1] - The ASP (Average Selling Price) for smartphones in 2024Q1 was RMB 1,144.7, a slight decrease of 0.6% YoY, but both domestic and international ASPs increased [1] - Xiaomi's smartphone shipments are expected to continue growing, with market share and ASP likely to rise further in 2024 [1] AIoT and Internet Services - AIoT platform connected devices reached 786 million in 2024Q1, up 27% YoY, with 15.2 million users having five or more connected devices, a 24.2% YoY increase [1] - AIoT gross margin hit a record high of 19.9%, up 4.1 percentage points YoY, driven by higher-margin products like tablets and wearables [1] - Internet services revenue in 2024Q1 was RMB 8 billion, up 14.5% YoY, with overseas internet revenue reaching RMB 2.5 billion, accounting for 31.2% of total internet revenue [1] - Internet services gross margin was 74.2%, up 1.9 percentage points YoY, supported by higher-margin advertising revenue [1] Xiaomi Automotive - Xiaomi's automotive division plans to expand its intelligent driving team to 1,500 by the end of 2024 and 2,000 by 2025 [2] - The company aims to launch city NOA (Navigate on Autopilot) in 10 cities by May 2024 and nationwide by August 2024 [2] - Xiaomi's "Human x Car x Home" ecosystem strategy is expected to enhance user experience and increase profitability through IoT products and value-added services [2] Financial Forecasts - Revenue for 2024-2026 is projected at RMB 337.3 billion, RMB 389.1 billion, and RMB 434.2 billion, with YoY growth rates of 24%, 15%, and 12% respectively [2] - Non-GAAP core business net profit for 2024-2026 is forecasted at RMB 27 billion, RMB 29.5 billion, and RMB 32.1 billion, with YoY growth rates of 1%, 9%, and 8% respectively [2] - The company's 2024E P/E ratio for core business is 15x, with a 2x P/S ratio for the automotive segment [2] Market Performance - Xiaomi's stock price as of May 24, 2024, was HKD 18.30, with a total market capitalization of HKD 456.68 billion [3] - The company's 30-day average trading volume was 129.63 million shares [3]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of HKD 24.0, representing a potential upside of 31.1% from the recent closing price of HKD 18.3 [2][3]. Core Insights - Xiaomi Group's Q1 2024 total revenue increased significantly by 27% year-on-year to RMB 75.5 billion, surpassing Bloomberg's consensus estimate of RMB 73.4 billion. The overall gross margin improved by 2.8 percentage points to 22.3% [1]. - Adjusted net profit for Q1 2024 grew by 100.8% year-on-year to RMB 6.5 billion, exceeding the market expectation of RMB 5.1 billion, despite incurring RMB 2.3 billion in expenses related to its automotive innovation business [1]. - The report highlights the successful launch of Xiaomi's first electric vehicle, the Xiaomi SU7 series, which has received strong market demand with 10,000 units delivered by mid-May 2024 [1]. Summary by Sections Smartphone Business - In Q1 2024, Xiaomi ranked third globally in smartphone shipments with a market share of 13.8%, shipping 40.6 million units, a year-on-year increase of 33.7%, outperforming the global smartphone market's growth of 9.8% [1]. - Revenue from the smartphone segment reached RMB 46.5 billion, up 32.9% year-on-year, with the average selling price (ASP) slightly decreasing by 0.6% to RMB 1,144 due to increased overseas market revenue [1]. Internet and IoT Services - Internet services revenue hit a record high of RMB 8 billion in Q1 2024, growing 14.5% year-on-year, with a gross margin of 74.2%, up 1.9 percentage points [1]. - Revenue from IoT and lifestyle products reached RMB 20.4 billion, a 21.0% year-on-year increase, with a gross margin of 19.9%, marking a significant improvement of 4.1 percentage points [1]. Automotive Business - The automotive business commenced successfully with the launch of the Xiaomi SU7 series, achieving 10,000 deliveries by May 15, 2024, and aiming for monthly deliveries exceeding 10,000 units by June 2024 [1]. - The report emphasizes the need to monitor the production capacity expansion plans for Xiaomi's automotive segment [1].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 22.80 HKD, compared to the current price of 18.30 HKD [4]. Core Insights - The company achieved a record high adjusted net profit margin in Q1 2024, with a significant year-on-year revenue increase of 27% to 755 billion RMB. The three core business segments—smartphones, IoT, and internet services—showed strong growth, with revenues increasing by 32.9%, 21.0%, and 14.5% respectively [2][3]. - The SU7 electric vehicle model has received over 88,000 pre-orders, with a target of delivering 120,000 units for the year [3]. Summary by Sections Financial Performance - Q1 2024 revenue reached 755 billion RMB, up 27% year-on-year. The adjusted net profit was 6.5 billion RMB, marking a 100.8% increase, with a historical high net profit margin of 8.6% [2]. - The smartphone segment generated 465 billion RMB in revenue, with a shipment volume of 4.06 million units, reflecting a 33.7% year-on-year increase [2][3]. - IoT revenue grew by 21.0% to 204 billion RMB, achieving a record high gross margin of 19.9% [2]. - Internet services revenue increased by 14.5% to 80 billion RMB, with a gross margin of 74.2% [2]. Business Segments - The smartphone business saw a gross margin of 14.8%, despite a slight decline due to increased BOM costs and inventory provisions. The expected gross margin for the smartphone segment for the full year is projected to be between 12-13% [2]. - The IoT segment's strong performance is attributed to high-margin products such as tablets and smart appliances, with expectations for a gross margin above 18% for the year [2]. - The internet services segment is expected to benefit from an increasing global user base and higher-end device sales, driving revenue growth [2]. Future Outlook - The company has adjusted its profit forecasts for 2024, 2025, and 2026, increasing the Non-IFRs net profit estimates to 16.6 billion, 18.3 billion, and 21 billion RMB respectively [3]. - The report anticipates continued growth driven by the successful launch of the SU7 and improvements in the company's core business operations [3].