GOLDEN SUN SECURITIES·2025-06-02 13:25Investment 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 a global shipment of 41.8 million units, a 3% increase year-on-year, and a global market share of 14.1% [1][3] - The IoT business is focusing on high-end and international expansion, with revenue reaching 32.3 billion yuan and 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 in 2025, 634.5 billion yuan in 2026, and 764.8 billion yuan in 2027, with year-on-year growth rates of 33%, 30%, and 21% respectively [3][5] - Adjusted net profit for the main consumer electronics business is expected to be 41.9 billion yuan in 2025, 52.0 billion yuan in 2026, and 61.1 billion yuan in 2027, with growth rates of 25%, 24%, and 18% respectively [3][5] - The report anticipates a significant increase in automotive adjusted net profit, projecting a turnaround to 10.1 billion yuan in 2026 and 20.6 billion yuan in 2027 [3][5] Key Financial Metrics - The report provides a detailed financial forecast, including revenue, adjusted net profit, and earnings per share (EPS) for the years 2023 to 2027, indicating a strong growth trajectory [5][13] - The expected adjusted EPS is projected to be 1.6 yuan in 2025, 2.4 yuan in 2026, and 3.1 yuan in 2027 [3][5] - The price-to-earnings (P/E) ratio is expected to decrease from 29 in 2025 to 15 in 2027, indicating a potentially attractive valuation [3][5]