Guotai Junan Securities·2024-08-23 10:41Investment Rating - The report assigns a rating of "Buy" to Xiaomi Group-W (1810) [2][4]. Core Views - The report highlights that the adjusted net profit for Q2 2024 exceeded expectations, driven by strong automotive gross margins and continuous growth in the IOT and internet segments, alongside sustained growth in mobile phone sales [3][4]. - The revenue forecast for Xiaomi has been revised upwards for 2024-2025, with adjusted net profit estimates now at 25.2 billion and 29.3 billion RMB, compared to previous estimates of 19.6 billion and 20.2 billion RMB [4]. Financial Summary - For Q2 2024, Xiaomi reported revenue of 88.9 billion RMB, a year-on-year increase of 32%, surpassing Bloomberg's consensus estimate by 2.5% [4]. - The adjusted net profit for Q2 2024 was 6.175 billion RMB, reflecting a year-on-year growth of 20.1%, exceeding Bloomberg's consensus estimate by 27.2% [4]. - The automotive segment's revenue for Q2 2024 reached 6.4 billion RMB, with a gross margin of 15.4%, significantly above market expectations [4]. - Mobile phone revenue was 46.5 billion RMB, a year-on-year increase of 27%, with a gross margin of 12.1% [4]. - IOT business revenue for Q2 2024 was 26.8 billion RMB, a year-on-year increase of 20%, with a gross margin of 19.7% [4]. - Internet revenue for Q2 2024 was 8.3 billion RMB, a year-on-year increase of 11%, with a gross margin of 78.3% [4]. Business Segments - The automotive business is expected to see continuous revenue growth as delivery capabilities improve, with a target of 120,000 units for the year [4]. - The mobile phone segment is projected to maintain its global market share, supported by the launch of flagship products and easing raw material cost pressures [4]. - The IOT segment is experiencing robust growth, driven by strong sales in major appliances, with significant year-on-year increases in unit sales for air conditioners, refrigerators, and washing machines [4].