XIAOMI(01810) 甬兴证券·2025-02-28 08:16Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][6]. Core Insights - The company is a global leader in the smartphone market, focusing on smartphones, smart hardware, and IoT platforms. The smartphone revenue has consistently accounted for over 50% of total revenue, reaching 54.67% in the first three quarters of 2024. IoT and lifestyle products contributed 28.51%, while internet services made up 9.64% of total revenue [1][2][3]. - The company is advancing its "human-vehicle-home" ecosystem strategy and aims to become a global leader in core technology through significant investments in foundational technologies over the next decade [1][3][24]. - The company has made significant progress in its dual-brand strategy with Xiaomi and Redmi, achieving breakthroughs in high-end market segments while maintaining competitive pricing [2][33]. Financial Projections and Valuation - The adjusted net profit forecasts for 2024, 2025, and 2026 are projected at 253.15 billion, 319.16 billion, and 383.86 billion RMB, respectively. The corresponding P/E ratios are estimated at 54.35, 43.11, and 35.85 times [3][5]. - The company’s total revenue for 2024 is expected to reach 362.2 billion RMB, with a year-on-year growth rate of 33.67% [5][26]. Business Development - The company is actively expanding its automotive business, having officially entered the smart electric vehicle market in March 2021. The first vehicle, the Xiaomi SU7 series, is set to be delivered in April 2024 [2][49]. - The AIoT strategy is continuously evolving, with the number of connected IoT devices reaching 861.4 million by the third quarter of 2024, marking a 23.2% year-on-year increase [18][46]. Market Position - As of the third quarter of 2024, the company ranked third globally in smartphone shipments, with a market share of 13.8%, maintaining its position among the top three for seventeen consecutive quarters [18][39]. - The company has achieved a significant increase in its active user base, with 685.8 million monthly active users as of September 2024, reflecting a 10.1% year-on-year growth [18].