XIAOMI(HK:01810) Jin Shi Shu Ju·2025-06-27 07:35Core Viewpoint - Xiaomi's launch of the YU7 SUV has significantly boosted its stock price and is expected to drive strong sales and market positioning in the electric vehicle sector [1][2]. Group 1: Product Launch and Market Response - Xiaomi's YU7 SUV saw a stock price increase of 8% and reached a historical high following its launch, with over 200,000 pre-orders within 3 minutes and nearly 290,000 within 1 hour [1]. - The YU7 is positioned as a "luxury high-performance" SUV, featuring a top range of 760 kilometers, acceleration from 0 to 100 km/h in 3.23 seconds, and equipped with advanced features such as laser radar [1]. - Analysts are optimistic about the YU7's performance, with Citigroup suggesting that Tesla may need to lower prices and offer additional features to compete in the Chinese market [1]. Group 2: Financial Projections and Analyst Ratings - Morgan Stanley predicts that Xiaomi's revenue could reach 1 trillion yuan and net profit 100 billion yuan by 2030, with a target market capitalization of 2.5 trillion yuan [2]. - Bank of America views the YU7's pricing as reasonable and expects it to outperform Tesla's Model Y, maintaining a buy rating with a target price of 66 HKD [2]. - The YU7 launch is seen as a critical validation of Xiaomi's automotive capabilities, especially following regulatory scrutiny after the SU7 incident [2]. Group 3: Strategic Vision and Market Positioning - Lei Jun, Xiaomi's CEO, views the YU7 as a significant step in the company's automotive strategy, likening it to past challenges against Apple and now targeting Tesla [2]. - Xiaomi has committed to investing 200 billion yuan over the next five years to establish itself as a leader in the global smart device market [2]. - The company's market capitalization has increased by over 70% this year, making it one of the best-performing large-cap stocks in the Asia-Pacific region [2].