XIAOMI(01810) 天风证券·2025-02-17 09:46Investment Rating - The report assigns an initial investment rating of "Buy" for Xiaomi Group-W (01810) with a target price of 41.7 HKD, while the current price is 44.7 HKD [4]. Core Insights - The report highlights that Xiaomi's high-end strategy is evolving from single product categories to an ecosystem approach, leveraging its efficiency to enhance user experience and achieve scale [1][2]. - The automotive sector is identified as a key long-term growth driver for Xiaomi, with expectations for significant growth in the coming years [2][3]. - The emergence of a new AI era is seen as a pivotal moment for Xiaomi, with its AIOT ecosystem positioned to capitalize on this trend [2][3]. Summary by Sections 1. Business Upgrades and Organizational Structure - Xiaomi has undergone three significant upgrades, strategically positioning itself to target the global automotive market [12]. - The organizational structure has been enhanced to support business expansion, with a mix of internal promotions and external hires [14]. 2. Revenue Breakdown and Market Position - In 2023, Xiaomi's total revenue reached 271 billion RMB, with smartphones contributing approximately 60% and IoT and lifestyle products accounting for about 30% [17]. - The smartphone market is experiencing a recovery, with Xiaomi maintaining a strong position among the top three global smartphone manufacturers [19]. 3. Automotive Business - The automotive sector is viewed as a critical source of long-term flexibility for Xiaomi, with expectations for significant sales growth in the coming years [2][41]. - The SU7 model has shown strong sales performance, indicating a successful entry into the automotive market [42]. 4. AIOT and Ecosystem Development - Xiaomi's AIOT business is transitioning into a 2.0 era, focusing on enhancing technological attributes and user experience [30][32]. - The integration of AI capabilities across devices is expected to strengthen Xiaomi's ecosystem and user engagement [47]. 5. Future Outlook - The report anticipates that Xiaomi will continue to benefit from its brand upgrade and accelerated international expansion, projecting total revenue growth to 353.4 billion RMB by 2024 [3]. - The company's strategy to embrace high-value users, particularly from the Apple ecosystem, is expected to enhance its market position [55].