Minsheng Securities·2024-11-19 01:15Investment Rating - The report maintains a "Buy" rating for Xiaomi Group (1810.HK) with a current price of HKD 28.80 [4] Core Insights - Xiaomi Group reported a strong performance in Q3 2024, achieving a record revenue of CNY 92.507 billion, representing a year-over-year growth of 30.0% and a quarter-over-quarter growth of 4.1% [2] - The adjusted net profit for Q3 2024 was CNY 6.252 billion, showing a year-over-year increase of 4.4% and a quarter-over-quarter increase of 1.2% [2] - The gross margin for Q3 2024 was 20.41%, down 2.3 percentage points year-over-year, while the net margin was 5.77%, down 1.1 percentage points year-over-year [2] - The smartphone business saw a shipment of 43.1 million units globally, a 3.1% increase year-over-year, with a market share of 13.8% [2] - The electric vehicle segment is expected to benefit from scale effects, with a gross margin of 17.1% in Q3 2024, although it still reported a net loss margin of approximately -15.5% [2] Financial Performance - For Q3 2024, revenue breakdown by business segment includes: smartphones (CNY 47.5 billion), IoT and lifestyle products (CNY 26.1 billion), internet services (CNY 8.5 billion), and high-tech electric vehicles (CNY 9.7 billion) [2] - The company anticipates revenue growth to reach CNY 344.579 billion in 2024, CNY 397.966 billion in 2025, and CNY 462.833 billion in 2026, with corresponding net profits of CNY 19.666 billion, CNY 22.885 billion, and CNY 28.353 billion respectively [3][7] - The report projects a P/E ratio of 33 for 2024, 29 for 2025, and 23 for 2026 [3][7] Strategic Developments - Xiaomi's high-end smartphone strategy has shown significant results, particularly in the CNY 3,000 to CNY 6,000 price range, where market share has increased substantially [2] - The company has successfully delivered 100,000 electric vehicles ahead of schedule and is targeting 130,000 deliveries for the year [2] - The IoT and lifestyle products segment achieved a gross margin of 20.8%, with significant growth in categories such as tablets and home appliances [2]