Great Wall Securities·2025-05-29 05:40Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [4][23]. Core Viewpoints - Xiaomi has launched its self-developed "Xuanjie O1" chip, enhancing its "Human-Vehicle-Home" ecosystem. The company plans to invest an additional 200 billion yuan in core technology research and development from 2026 to 2030 [2][21]. - The company is expected to see significant growth in revenue and net profit, with projections of 309.48 billion yuan, 400.08 billion yuan, and 501.72 billion yuan in net profit for 2025, 2026, and 2027 respectively [23]. Summary by Relevant Sections Financial Indicators - Revenue (million yuan): 270,970.14 in 2023, projected to reach 673,424.43 by 2027, with a CAGR of 16.89% [1]. - Net profit (million yuan): 17,475.17 in 2023, expected to grow to 50,172.45 by 2027, reflecting a growth rate of 25.40% [1]. - ROE: Expected to increase from 10.66% in 2023 to 16.19% in 2027 [1]. - EPS: Projected to rise from 0.67 yuan in 2023 to 1.93 yuan in 2027 [1]. Product Launches and Innovations - The "Xuanjie O1" chip is a significant milestone, utilizing a second-generation 3nm process and featuring a 10-core CPU and a 16-core GPU [11][12]. - The Xiaomi 15S Pro, Xiaomi Pad 7 Ultra, and Xiaomi Watch S4 were launched, all equipped with the new chip, showcasing advancements in technology and design [2][11]. - The high-performance SUV, Xiaomi YU7, was introduced, featuring impressive specifications such as a maximum horsepower of 690PS and a 0-100 km/h acceleration time of just 3.23 seconds [3][21]. Market Position and Strategy - Xiaomi's smartphone business remains strong, consistently ranking among the top three globally for 19 consecutive quarters. The company is also expanding into the electric vehicle market, which is expected to provide a second growth curve [17][23]. - The report emphasizes the importance of maintaining high R&D investments, totaling 1,020 billion yuan over the past five years, to support product upgrades across its ecosystem [17][21].