XIAOMI(01810) 甬兴证券·2025-02-28 09:16Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][6]. Core Views - 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. The company is advancing its "human-vehicle-home" ecosystem strategy and aims to become a global leader in core technology over the next decade [1][2][3]. Financial Performance - The company expects adjusted net profits of RMB 25.315 billion, RMB 31.916 billion, and RMB 38.386 billion for 2024, 2025, and 2026, respectively. The corresponding P/E ratios are projected to be 54.35, 43.11, and 35.85 times based on the closing price on February 21, 2025 [3][5]. - For 2024, the company anticipates total revenue of RMB 362.2 billion, a 33.67% increase from 2023, with adjusted net profit expected to grow by 31.35% [5][26]. Business Development - The company is actively promoting a dual-brand strategy with Xiaomi and Redmi, achieving breakthroughs in high-end market segments. The strategy focuses on high specifications combined with competitive pricing, enhancing hardware competitiveness [2][33]. - The automotive business is rapidly developing, with the first electric vehicle, the Xiaomi SU7 series, set to launch in April 2024. The company aims to integrate its "human-vehicle-home" ecosystem, leveraging its large fan base and marketing capabilities [2][49]. IoT and AI Strategy - The AIoT strategy is continuously upgraded, 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. The company is also focusing on integrating AI into its operations and user scenarios [18][43][46]. - The company maintains a leading position in the wearable products sector, ranking third globally in wearable device shipments and first in the Chinese market for TWS earphones [43][45]. Market Position - As of the third quarter of 2024, the company ranked third globally in smartphone shipments, with a market share of 13.8%, and achieved a 3.1% year-on-year increase in global smartphone shipments [18][39].