Orient Securities·2025-05-28 07:35Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 75.52 HKD based on a 38x PE valuation for 2026 [3][10]. Core Insights - The company achieved record high revenue and adjusted net profit in Q1 2025, with revenue reaching 111.3 billion CNY, a 47% year-on-year increase, and adjusted net profit of 10.7 billion CNY, up 64% year-on-year [9]. - The smartphone segment showed significant growth, with a 9% increase in revenue to 50.6 billion CNY and a global market share of 14.1%, ranking among the top three globally [9]. - The IoT and lifestyle products segment also saw strong performance, with revenue of 32.3 billion CNY, a 59% increase, and a gross margin of 25.2% [9]. - The internet services segment reported revenue of 9.1 billion CNY, a 13% increase, with a gross margin of 76.9% [9]. - The electric vehicle segment generated 18.6 billion CNY in revenue, with a gross margin of 23.2%, and the company continues to expand its sales network [9]. Financial Summary - Revenue projections for 2025-2027 are 477.67 billion CNY, 575.30 billion CNY, and 690.22 billion CNY, respectively, with year-on-year growth rates of 31%, 20%, and 20% [5][10]. - Adjusted net profit forecasts for the same period are 35.12 billion CNY, 47.32 billion CNY, and 59.00 billion CNY, with growth rates of 48%, 35%, and 25% [5][10]. - The company’s gross margin is expected to improve from 22.5% in 2025 to 23.1% in 2027, while net profit margin is projected to increase from 7.4% to 8.5% [5][10]. - The earnings per share (EPS) forecast for 2025-2027 is 1.35 CNY, 1.82 CNY, and 2.27 CNY, respectively [5][10].