XIAOMI(01810) 第一上海证券·2024-09-04 07:09Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 22.58, indicating an upside potential of 18.47% from the current price of HKD 19.06 [1][3]. Core Insights - The company reported revenue of RMB 888.9 billion for Q2 2024, a year-on-year increase of 32.0%, exceeding market expectations of RMB 867.5 billion. The overall gross margin was 20.7%, slightly down by 0.3 percentage points year-on-year but above the expected 19.6% [1]. - The net profit reached RMB 50.7 billion, up 38.3% year-on-year, while adjusted net profit was RMB 61.8 billion, reflecting a 20.1% increase [1]. - Cash reserves stood at RMB 141 billion, a 24.5% increase year-on-year, with a total of 248 million shares repurchased for HKD 3.68 billion as of July 19, 2024 [1]. Revenue and Profitability - The mobile and AIoT segment generated revenue of RMB 825.2 billion, a 22.5% increase year-on-year, with a gross margin of 21.1%, up 0.1 percentage points [1]. - Smartphone revenue was RMB 465.2 billion, growing 27.1% year-on-year, driven by a 28.1% increase in smartphone shipments to 42.2 million units [1]. - IoT business revenue reached a record high of RMB 267.6 billion, up 20.3% year-on-year, with a gross margin of 19.7%, an increase of 2.1 percentage points [1]. Automotive Business - The automotive segment reported revenue of RMB 63.7 billion, with vehicle sales contributing RMB 62.4 billion. The average selling price (ASP) was RMB 229,000, with Q2 deliveries reaching 27,307 units [1]. - The gross margin for the automotive business was 15.4%, significantly exceeding market expectations, attributed to strong supply chain negotiation capabilities and high sales volumes [1]. Financial Projections - Revenue forecasts for 2024, 2025, and 2026 are RMB 3390.9 billion, RMB 3967.0 billion, and RMB 4317.9 billion, respectively. Net profit projections for the same years are RMB 170.3 billion, RMB 216.0 billion, and RMB 271.1 billion [1][2].