XIAOMI(01810) GOLDEN SUN SECURITIES·2025-06-02 13:02Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [3][6] Core Views - Xiaomi Group achieved record high revenue and profit in Q1 2025, with total revenue of 111.3 billion yuan, a year-on-year increase of 47.4%, and adjusted net profit of 10.7 billion yuan, up 64.5% year-on-year [1][3] - The smartphone segment regained the top market share in China, with revenue of 50.6 billion yuan and a gross margin of 12.4% in Q1 2025, while global smartphone shipments reached 41.8 million units, a 3% increase [1][3] - The IoT business continues to focus on high-end and international markets, generating 32.3 billion yuan in revenue with a gross margin of 25.2% in Q1 2025 [2][3] - The automotive segment reported revenue of 18.6 billion yuan, with the new SUV model YU7 expected to become a bestseller upon pricing announcement [2][3] Financial Summary - Revenue projections for Xiaomi Group are 486.7 billion yuan, 634.5 billion yuan, and 764.8 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 33%, 30%, and 21% [3][5] - Adjusted net profit for the core consumer electronics business is expected to be 41.9 billion yuan, 52.0 billion yuan, and 61.1 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 25%, 24%, and 18% [3][5] - The report anticipates a target price of 60 HKD for Xiaomi Group based on a P/E ratio of 20x for 2026 estimates [3][6]