XIAOMI(01810) 第一上海·2025-05-29 05:40Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 67.9, indicating a potential upside of 29.28% from the current price of HKD 52.50 [5][8]. Core Insights - The company achieved revenue of RMB 111.3 billion in Q1 2025, a year-on-year increase of 47.4%, surpassing market expectations of RMB 109 billion. The overall gross margin improved to 22.8%, up 0.5 percentage points year-on-year, with a net profit of RMB 10.9 billion, reflecting a 161.0% increase year-on-year [1]. - The smartphone segment returned to the top position in the domestic market with revenue of RMB 50.6 billion, a growth of 8.9%. The market share reached 18.8%, with a shipment increase of 40%, significantly outpacing the industry growth rate of 4.6% [2]. - The IoT segment saw a revenue increase of 58.7% to RMB 32.3 billion, with a gross margin of 25.2%, marking a historical high. The growth was driven by a doubling in revenue from smart home appliances [3]. - The automotive business reported revenue of RMB 18.6 billion, with a gross margin of 23.2%. The new luxury SUV model YU7 received a positive market response, indicating potential for increased average selling price (ASP) [4]. Summary by Sections Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 270.97 billion, with an adjusted net profit of RMB 19.27 billion, reflecting a 126.26% increase year-on-year. Forecasts for 2025 and 2026 predict revenues of RMB 495.65 billion and RMB 627.04 billion, respectively, with adjusted net profits of RMB 45.56 billion and RMB 57.75 billion [6][10]. Market Position - The company has regained its position as the leading smartphone vendor in China, with a significant increase in high-end smartphone shipments, contributing to a rise in average selling price (ASP) to RMB 1,211 [2]. - The IoT segment's growth is attributed to the increasing demand for smart home devices, with a notable rise in gross margin due to government subsidies and a higher proportion of large appliances [3]. Future Outlook - The company plans to invest RMB 200 billion in R&D from 2026 to 2030, focusing on AI and chip technology to strengthen its competitive edge [1]. - The automotive segment is expected to continue its recovery, with the YU7 model anticipated to enhance the company's market competitiveness and ASP [4].