Zhi Tong Cai Jing·2025-08-08 03:35Group 1 - The core viewpoint of the report is that due to the downward adjustment of industry valuation, the target price for Xiaomi Group-W (01810) has been lowered by 9% to HKD 70, which corresponds to adjusted net profit P/E ratios of 34.4 times and 25.1 times for the next two years, indicating a potential upside of 29.6% [1] Group 2 - The company is expected to achieve a revenue growth of 32.71% year-on-year in Q2, reaching RMB 117.97 billion, with adjusted net profit increasing by 64.84% to RMB 10.18 billion [1] - In the smartphone segment, due to intense competition in the low-price market, the average selling price (ASP) has slightly decreased year-on-year, leading to a 1.6% decline in smartphone revenue to RMB 45.79 billion, with a gross margin decrease of 0.6 percentage points to 11.5% [1] - The Internet of Things (IoT) segment is projected to see a revenue increase of 36% year-on-year in Q2, reaching RMB 36.39 billion, with a gross margin increase of 3.3 percentage points to 23% [1] - The internet services segment is expected to grow by 11% year-on-year in Q2, with revenue reaching RMB 9.18 billion, although the gross margin is expected to decline by 2.3 percentage points to 76%, maintaining a healthy overall level [1] - Additionally, the company is anticipated to deliver 81,000 units of the Xiaomi SU7 in Q2, generating revenue of RMB 25.92 billion, with a sequential gross margin increase of 1 percentage point to 24.2% [1]