Ge Long Hui·2025-08-22 03:00Group 1 - The core viewpoint of the report indicates that Xiaomi's Q2 performance met market expectations, with notable achievements in the automotive sector [1] - Revenue and adjusted net profit for the quarter were reported at 116 billion and 10.8 billion respectively, aligning with market forecasts [1] - Automotive revenue experienced a year-on-year increase of 40%, with a gross margin reaching a historical high of 26.4%, driven by an increase in average selling price and economies of scale [1] Group 2 - Smartphone revenue saw a year-on-year decline of 2%, primarily due to the release of the REDMI A5, which lowered the average selling price overseas; however, the domestic average selling price benefited from a higher proportion of premium models, continuing to grow year-on-year [1] - The company has slightly adjusted its 2026 automotive business revenue forecast to 182 billion from a previous estimate of 181.7 billion [1] - Due to uncertainties in the smartphone and other business segments, revenue forecasts for 2025 and 2026 have been lowered to 483 billion and 605.8 billion respectively, along with adjusted earnings per share estimates of 1.67 and 2.01 [1] Group 3 - Based on a 25 times price-to-earnings ratio for smartphone and AIoT segments and a 2.2 times price-to-sales ratio for the automotive business, the target price has been revised down from 67 HKD to 60 HKD, while maintaining a "buy" rating [1]