XIAOMI(HK:01810) Ge Long Hui·2025-08-11 06:21Core Viewpoint - Citi expects Xiaomi Group's Q2 performance to remain strong, with total revenue projected to grow by 26% year-on-year to 112 billion yuan, and adjusted net profit expected to increase by 62% year-on-year to 10 billion yuan, although slightly below market consensus due to weak smartphone sales and profit margins, as well as slower-than-expected electric vehicle production capacity improvements [1] Group 1: Financial Performance - Total revenue is projected to grow by 26% year-on-year to 112 billion yuan [1] - Adjusted net profit is expected to increase by 62% year-on-year to 10 billion yuan [1] - Performance may be slightly below market consensus due to weak smartphone sales and profit margins [1] Group 2: Electric Vehicle Business - The YU7 model has shown excellent market performance, with orders exceeding 250,000 units [1] - Improvement in electric vehicle business gross margins is anticipated due to rising average selling prices and economies of scale [1] - The electric vehicle business is expected to achieve breakeven by Q3 2025 [1] Group 3: Future Growth Drivers - AIoT and electric vehicle businesses are expected to continue as core growth engines for Xiaomi [1] - Citi maintains a target price of 69 HKD and reaffirms a "highly confident outperform" rating [1]