Zhi Tong Cai Jing·2025-08-13 09:49Group 1 - The core viewpoint of the reports indicates that Xiaomi Group's valuation has become attractive after a 16% pullback from recent highs, with a maintained "buy" rating and a slight target price adjustment from HKD 75.25 to HKD 74.4 [1] - The revenue forecast for Xiaomi for Q2 2025 has been slightly reduced from RMB 123 billion to RMB 114 billion, and the adjusted net profit forecast has been lowered from RMB 10.9 billion to RMB 10.4 billion, reflecting factors such as a slight increase in smartphone shipments to 42.5 million units but a decrease in gross margin due to a higher low-end product mix and rising storage costs [1] - The expectation is that Xiaomi's innovative business segments, including smart electric vehicles and AI, will further reduce losses in Q2 and are anticipated to become profitable in the second half of the year, although the sales forecast for 2025 has been slightly adjusted down to 400,000 units due to delays in factory production [1] Group 2 - Despite the expectation that Xiaomi's smart electric vehicle business will enter a profitable phase in the second half of 2025, the valuation method for this segment will continue to use the price-to-sales (P/S) ratio due to capacity constraints and investments in AI and other new businesses, which may not fully reflect the profitability and growth prospects [2] - Based on a P/S ratio of 4 times for 2026, the valuation for the electric vehicle segment is maintained at HKD 30.4 per share [2]