XIAOMI(01810) 东方证券·2024-08-04 08:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 19.12 HKD based on a 28x PE valuation for 2024 [1][6][3]. Core Insights - The company's smartphone shipments continue to show strong year-on-year growth, with a 27% increase in Q2 2024, reaching 42.3 million units, securing a 15% global market share [1]. - The company is focusing on high-end products, launching new models in its foldable smartphone series, which are designed to compete with flagship models [1]. - The establishment of new manufacturing facilities, including a 2.4 billion RMB factory in Changping with an annual capacity of 10 million flagship phones, indicates a commitment to smart manufacturing [1]. - The electric vehicle segment is also performing well, with the SU7 model expected to exceed 10,000 deliveries in July 2024, contributing to the company's "smart home" ecosystem [1]. Financial Forecast and Investment Recommendations - Earnings per share (EPS) are projected to be 0.62, 0.77, and 0.93 RMB for 2024, 2025, and 2026 respectively, reflecting adjustments in revenue and expense forecasts [1][6]. - The company's revenue is expected to recover, with a forecast of 336.97 billion RMB in 2024, representing a 24% year-on-year growth [2][11]. - The gross margin is anticipated to improve to 19.8% in 2024, with net profit margins also expected to rise [2][11].