Core Viewpoints - Xiaomi Group's core business profits remain stable at a high level, and its smart electric vehicle business is expected to release valuation potential [4] - Xiaomi aims to become a global leader in hardcore technology by 2030, focusing on high-end, industrial capabilities, OS, AI, chips, and new retail [23] - Xiaomi's SU7 model has achieved significant success, with over 70,000 orders locked as of April 20, 2024, and a delivery target of 100,000 units for the year [23] - Xiaomi's long-term valuation is expected to rise, driven by the rapid increase in SU7 deliveries and stable growth in global smartphone market share and high-end shipments [30] Industry Tracking - The technology industry remains stable, but market sentiment still needs further recovery [4] - The new energy vehicle industry is expected to maintain high-speed growth in 2024, with incremental competition continuing [4] - Xiaomi's SU7 model has demonstrated strong smart driving capabilities, with an activation rate of 79% and over 250,000 kilometers driven [23] - Xiaomi plans to expand its car sales network to 219 stores and 139 service centers across 46 and 82 cities, respectively, in 2024 [23] Company Strategy - Xiaomi's 2024 business goals include achieving over RMB 300 billion in main business revenue, increasing smartphone shipments by 15-20 million units, and investing RMB 110-120 billion in the car business [23] - Xiaomi is focusing on building a "Human-Car-Home" ecosystem, which will help amortize R&D investments in areas like the HyperOS and AI [24] - Xiaomi's SU7 model has successfully attracted a significant portion of Apple users, with 46% of its customers being Apple smartphone users, indicating a strong brand positioning in the high-end market [23][31] User Demographics - Xiaomi SU7 users are predominantly male, with female buyers accounting for 28%, but Xiaomi expects the actual female user base to be between 40%-50% [9][23] - The most popular color for Xiaomi SU7 is "Elegant Gray," accounting for 33.8% of user preferences, followed by "Purple Dawn" at 23.1% [8] - The SU7 Max version is the most popular model, accounting for 43.16% of orders, while the SU7 Pro and Standard versions each account for around 28% [31] Future Outlook - Xiaomi expects to deliver over 20,000 SU7 units in 2024, with the potential to reach 200,000 units in the following year as SUV models are introduced [24] - Xiaomi's SU7 success is expected to enhance the company's brand and contribute to the growth of its smartphone business, particularly in the high-end segment [24] - Xiaomi's long-term valuation is expected to rise, with the potential for the company to become a leading player in the global technology industry [30]

Industry Investment Rating - The report reiterates a "Buy" rating for Xiaomi, citing its potential for long-term growth and valuation uplift as it transitions into a global hardcore technology leader [2] Core Viewpoints - Xiaomi has set a new decade-long goal (2020-2030) to become a global leader in hardcore technology, with a focus on high-end products, industrial capabilities, OS, AI, chips, and new retail [1] - The company's "Human x Car x Home" ecosystem strategy is central to its growth, with significant investments in R&D and a strong emphasis on building a high-end brand image [1] - Xiaomi's SU7 car launch has been a success, with over 70,000 orders locked in by April 20, 2024, and a strong user base from Apple phone users (46%) and female buyers (28%, expected to reach 40%-50%) [1][4] - The company aims to deliver 100,000 cars in 2024, with a target revenue of over RMB 300 billion and a gross margin of 5%-10% for its car business [1] - Xiaomi's valuation is expected to rise, driven by the rapid increase in SU7 deliveries and stable growth in global smartphone market share and high-end shipments [2] Strategic Focus and Business Goals - Xiaomi's 2024 business targets include: - Main business revenue exceeding RMB 300 billion [1] - Smartphone shipments increasing by 15-20 million units [1] - Car delivery target of 100,000 units, with an investment of RMB 110-120 billion [1] - R&D investment of RMB 24 billion [1] - The company plans to expand its car sales network to 219 stores across 46 cities and 139 service centers across 82 cities [1] - Xiaomi is focusing on building its "Human x Car x Home" ecosystem, which is expected to reduce R&D costs for shared technologies like the HyperOS and AI [2] Market and User Insights - Xiaomi's SU7 has achieved a 79% activation rate for its smart driving features, with 26,100 activations and over 250,000 kilometers driven [1] - The company plans to launch city NOA (Navigate on Autopilot) features in 10 cities, including Beijing, Shanghai, Guangzhou, and Shenzhen, by May 2024 [1] - Xiaomi's car business is expected to contribute significantly to revenue and profit growth, with a strong focus on expanding production capacity and improving delivery timelines [1]

浦银国际研究 宏观洞察 | 宏观经济 金晓雯，PhD，CFA 首席宏观分析师 xiaowen_jin@spdbi.com (852) 2808 6437 浦银国际 宏观洞察 月度宏观洞察： 中国经济增速好于预期， 降低推出显著刺激可能性 月度宏观洞察：中国经济增速好于 预期，降低推出显著刺激可能性 尽管经济向好，房地产行业下行以及通胀低迷等问题依然有待改善，对 外贸易和地缘政治上的风险亦逐渐显现。在此前谈及的对中国经济的几 点担忧中，我们对消费韧性和基建投资的担忧有所缓解。但是，我们对 房地产下行周期和通胀低迷的担忧并未完全消除：一是作为今年中国经 济最大的症结所在，房地产下行周期至今尚无明显起色。二是 CPI 在 2 月短暂改善后再度滑落。此外，3 月出口同比增速的下滑和贸易纷争再 起或影响外需改善的可持续性。美国总统选举和中东地区紧张局势亦加 剧了地缘政治风险。我们认为目前尚不是放松警惕的时候，经济的持续复 苏还需要政策继续支持。 我们上调全年经济增速预测 0.2 个百分点到 4.9%，预计推出显著增量政 策刺激的可能性正在降低。即便我们基于以上几点担忧，维持二到四季 度经济增速预测不变，全年经济增速预测 ...

互联网行业 | 行业追踪 AIGC 行业趋势：强调应用落 赵丹 浦 首席互联网分析师 银 地，多模态是大势所趋 dan_zhao@spdbi.com 国 (852) 2808 6436 际 杨子超，CFA 近期，我们参加了数场关于中国生成式人工智能的行业交流会。 互联网分析师 charles_yang@spdbi.com 大模型风向逐渐从去年关注参数规模转向更加强调应用场景落 (852) 2808 6409 地。多模态被视为AIGC行业2024年重要趋势之一。根据量子位 《中国AIGC应用全景报告》，2024年我国AIGC应用市场规模将 行 2024年4月22日 业 达到人民币 200 亿元，预计到 2026 年，中国 AI 市场规模将达 追 千亿级别；到2030年，中国AIGC应用市场规模将达万亿元。 踪 相关报告：  更加关注应用场景落地。AIGC产品应用落地的首要因素是场 景与技术的匹配，而技术成熟度则决定落地速度。大模型的 AIGC行业投资手册：挖掘美股“七巨头”外的 AI软件核心标的（2024-03-06） 三大维度，包括精度、成本和效率，是影响技术变现的关键 AIGC 行业趋势：Sora 横空出 ...

科技行业 | 行业追踪 台积电 1Q24 业绩：维持公司 2024 年 沈岱 首席科技分析师 浦 tony_shen@spdbi.com 银 指引，AI 需求保持强劲 (852) 2808 6435 国 际 马智焱 科技分析师 台积电 1Q24业绩符合预期，2Q24收入指引强劲，毛利率指引略低于市场 ivy_ma@spdbi.com 预期。台积电 2024 年一季度营业收入为 5,926 亿新台币，环比下降 5%， (852) 2809 0300 同比增长 17%，高于指引区间上限，略高于市场预期，主要由于 AI和高性 黄佳琦 能运算业务板块增长强劲。公司毛利率为 53.1%，环比大体持平，同比下 科技分析师 滑3.3 个百分点，大体符合市场预期。毛利率下滑主要由于 3nm 制程收入 sia_huang@spdbi.com 行 占比提升。公司一季度净利润2252亿新台币，环比下滑5%，同比增长9%， (852) 2809 0355 业 高于市场预期，主要由于费用控制较好。台积电指引二季度收入中位数环 追 比增长 9%，同比增长 34%，高于市场预期。公司二季度毛利率指引中位 踪 2024年4月19日 数，环比 ...

新能源汽车行业 | 行业追踪 大众、小鹏再携手，联合研发电子 沈岱 浦 电气架构，双方合作加深提速 首席科技分析师 银 tony_shen@spdbi.com 国 (852) 2808 6435 际 4月17日晚，小鹏汽车发布公告，披露其与大众汽车集团签订 电子电气架构技术战略合作框架协议，双方进一步拓展合作。 黄佳琦 科技分析师 关于小鹏和大众本次战略合作的两点基本信息：1）双方的联合 sia_huang@spdbi.com 开发将基于小鹏最新一代的电子电气架构 EEA3.5。小鹏坚持在 (852) 2809 0355 硬件设计和底层软件开发上进行全栈自研，经过数次量产迭代， 行 目前 EEA3.5 已经在 G6 和 X9 上量产，在集成度、数据技术平 2024年4月19日 业 台、分层软件平台等方面都处于国内领先水平。 追 踪 2）双方共同开发的电子电气架构将集成到大众在中国的 CMP 平台，预计将从2026 年起应用于在中国生产的大众品牌电动车 型。目前来看合作范围可以理解为大众ID.系列车型。 在之前两次合作的基础上，小鹏再次扩大与大众的合作，我们 认为释放以下积极信号。 首先，大众的认可表明小鹏在技 ...

Investment Rating - The report upgrades China Feihe (6186 HK) to a "Buy" rating with a target price of HKD 4 65 based on an 11x 2024 P/E and a total return of 21% including dividends [1] - The target price implies a potential upside of 13 3% from the current price of HKD 4 11 [2] Core Views - China Feihe has overcome its most challenging phase with improved channel inventory management stable brand momentum and stabilized gross margins for key products [1] - The company's free cash flow is expected to turn positive year-over-year and its dividend yield for 2024 is projected to rise to 7 7% among the highest in the consumer sector [1] - Enhanced channel and terminal price management will benefit long-term sustainable development despite potential short-term negative impacts on demand [1] - Short-term revenue growth remains uncertain but long-term market share growth is expected driven by improved terminal pricing and healthy inventory levels for core products [1] - Free cash flow is expected to improve in 2024 supporting further increases in dividend payouts [1] Financial Performance and Forecasts - Revenue for 2024E is projected at RMB 19 451 million a slight decline of 0 4% year-over-year with a gradual recovery expected in 2025E and 2026E [4] - Net profit attributable to shareholders is forecasted to grow by 2 9% in 2024E reaching RMB 3 489 million with further growth expected in subsequent years [4] - Gross margin is expected to remain stable at around 64 5% in 2024E with operating margin projected at 29 2% [6] - Free cash flow is anticipated to improve in 2024 driven by better profitability reduced working capital and lower capital expenditures [1] Channel and Inventory Management - China Feihe has implemented digital store management electronic fencing and a distribution system to optimize terminal inventory and price management [1] - These measures are expected to improve dealer profitability reinforce the premium positioning of Feihe products and create room for future ex-factory price increases [1] - Current inventory levels for core products such as Classic Star Flyer and Zhuorui are healthy at less than one month ensuring alignment between shipments and terminal sales [1] Dividend Policy - In 2023 China Feihe paid a dividend of RMB 2 36 billion representing 89% of free cash flow and a payout ratio of 69 6% up from 45 5% in 2022 [1] - Management has committed to increasing the absolute dividend amount in 2024 barring extreme adverse conditions [1] Market and Competitive Position - Despite weak market demand due to declining birth rates and consumer spending China Feihe aims for at least 5% revenue growth in 2024 [1] - The company's focus on premium products and improved pricing strategies is expected to help it gain market share in the long term [1]

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to RMB 129.1, indicating a potential upside of 24.6% from the current price of RMB 103.6 [2][3]. Core Insights - The company achieved record-high revenue and net profit growth in 2023, with revenue and net profit increasing by 39.5% and 46.1% year-on-year, respectively. This growth was driven by an increase in online sales, which accounted for 93.1% of total sales, and strong performance from both the main brand and second-tier brands [1][2]. - The brand matrix is becoming more comprehensive, supporting sustained high growth. The main brand accounted for 80.7% of revenue, with significant growth in key product lines. The second-tier brands are expected to see rapid revenue growth in 2024 [1][2]. - The company anticipates that online sales will continue to grow by 25%-30% in 2024, although the potential for further increases in online sales proportion is limited due to already high levels [1][2]. Financial Performance - In 2023, the company reported revenue of RMB 8,905 million and a net profit of RMB 1,194 million, with year-on-year growth rates of 39.5% and 46.1%, respectively [2][5]. - The company expects revenue to reach RMB 11,151 million in 2024, representing a year-on-year growth of 25.2% [2][7]. - The projected net profit for 2024 is RMB 1,516 million, with a year-on-year growth of 27.0% [2][7]. Brand Strategy - The company plans to enhance its main brand by introducing more key products while focusing on the development of second-tier brands. Specific strategies include targeting younger consumers and expanding product lines in the second-tier brands [1][2]. - The second-tier brands, including 彩棠 and 悦芙媞, are expected to grow faster than the main brand in terms of revenue contribution in 2024 [1][2]. Market Position - The company is positioned favorably within the cosmetics industry, with a strong online presence and a diversified brand portfolio that is expected to drive future growth [1][2].

Investment Rating - The report initiates coverage on Unity (U.US) with a "Buy" rating and a target price of $31, indicating a potential upside of 19% from the current price of $26.05 [14][44]. Core Insights - Unity is a leading player in the game engine market, holding approximately 70% market share in mobile games and expanding into industries beyond gaming, such as architecture, automotive, and aerospace, which currently contributes 23% to its Create Solutions revenue [3][33]. - The integration of AI technologies, particularly through the Unity editor, is expected to enhance product competitiveness and drive long-term growth [4][16]. - The company's growth solutions, which include advertising networks and game publishing services, accounted for 61% of revenue in 2023, showcasing a strong network effect and data advantage [15][16]. Summary by Sections Game Engine Market Leadership - Unity dominates the game engine market with a significant presence in mobile gaming, where 70% of the top 1000 mobile games are developed using Unity [10][11]. - The company has a market share of approximately 50% on PC and 40% on consoles, with a 90% share in the AR headset market [10]. AIGC Impact on Content Development - The report suggests that AIGC (AI-Generated Content) will complement traditional content creation tools rather than compete with them, enhancing efficiency in the development process [4][41]. - Unity has integrated AI capabilities into its editor, allowing for proprietary model training and support for third-party AI models, which is expected to benefit the company in the long run [4][41]. Financial Projections - Revenue is projected to grow from $1.39 billion in FY22 to $2.29 billion by FY26, with a notable increase in adjusted EBITDA from -$71 million in FY23 to $758 million by FY26 [9][17]. - The report anticipates a shift towards profitability, with operating losses decreasing from -$882 million in FY22 to -$103 million by FY26 [9][17]. Valuation Analysis - The target price of $31 corresponds to a 6.5x P/S ratio for FY24E, reflecting confidence in Unity's market position and growth potential [16][17]. - The report highlights that Unity's upcoming Unity 6 product is expected to enhance performance and support for new technologies, contributing to revenue growth through the newly introduced Runtime Fee model [30][61]. Business Focus and Strategy - Unity is focusing on core business areas: engine, cloud, and monetization, aiming to achieve the "Rule of 40" by the end of the year, which combines revenue growth and profitability [76]. - The company plans to exit non-strategic businesses that contributed $283 million in revenue, allowing for a more concentrated effort on high-margin SaaS subscriptions and other growth areas [76].

浦银国际研究 公司研究 | 消费行业 滔搏（6110.HK）：低估值、高股息、 林闻嘉 优质基本面带来较强的防御性 浦 首席消费分析师 银 richard_lin@spdbi.com 国 我们认为滔搏短期较弱的收入表现已基本反映在股价中，同时认为公 (852) 2808 6433 司当前较低的估值水平与较高的股息率，叠加其优秀的基本面和现金 际 桑若楠，CFA 流，为滔搏的股价提供了很强的防御性，可支撑滔搏后市维持稳健的 股价表现。下调滔搏目标价至 7.0 港元，维持滔搏“买入”评级。 消费分析师 serena_sang@spdbi.com  当前股价已反映 2024年以来较弱的收入趋势：基于疲弱的终端需求 (852) 2808 6439 公 以及较高的基数，我们预计滔搏 1-2 月收入同比小幅下滑低单位数， 司 2024年4月12日 与行业表现基本一致。结合 2023 年 12 月在低基数之上较高速的收 研 入增长，我们预测滔搏 4QFY24 整体收入同比增长中单位数。我们预 评级 究 计滔搏 3 月的收入延续了1-2 月小幅下跌的趋势，但跌幅远小于主要 同业（宝胜）。公司库存依然维持健康水平，2 月底库 ...