智通财经网·2025-05-28 01:25Core Viewpoint - Company has raised its adjusted net profit forecasts for 2025 and 2026 by 19.9% and 3.4% respectively, driven by strong IoT and automotive gross margins, with a target price of HKD 70.0, indicating a potential upside of 35.8% [1] Group 1: Financial Performance - In Q1 2025, the company reported revenue of CNY 1112.93 billion, a year-on-year increase of 47.4%, exceeding expectations by 1.8% [2] - Adjusted net profit for Q1 2025 was CNY 106.76 billion, a 64.5% increase year-on-year, surpassing expectations by 7.8% [2] Group 2: Smartphone Market Position - In Q1 2025, the company regained the top position in China's smartphone market with a shipment of 41.8 million units, a 3.0% year-on-year increase [3] - The company's market share in China increased by 4.7 percentage points year-on-year to 18.8%, driven by growth in high-end smartphones and government subsidies [3] - The average selling price (ASP) of smartphones rose by 5.8% year-on-year to CNY 1210.6, contributing to an 8.9% increase in smartphone revenue to CNY 506.12 billion [3] - Smartphone gross margin improved by 0.4 percentage points quarter-on-quarter to 12.4%, attributed to falling raw material prices and product mix optimization [3] Group 3: IoT and Internet Business Growth - IoT revenue in Q1 2025 grew by 58.7% year-on-year to CNY 323.39 billion, with significant contributions from smart appliances, wearables, and tablets [4] - The gross margin for IoT increased by 5.3 percentage points year-on-year, driven by a higher proportion of high-margin products [4] - Internet business revenue rose by 12.8% year-on-year to CNY 90.76 billion, with a gross margin increase of 2.7 percentage points to 76.9% [4] Group 4: Automotive Sector Performance - In Q1 2025, the automotive segment generated revenue of CNY 185.80 billion, with deliveries of 75,900 units, and a gross margin increase of 2.7 percentage points to 23.2% [5] - The company announced the launch of its first SUV, YU7, set to be released in July, with expectations for continued sales growth [5] - The long-term strategy focuses on creating an integrated ecosystem involving vehicles, homes, and smart devices [5]