XIAOMI(HK:01810) Huaan Securities·2025-06-03 07:05Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company's performance in Q1 2025 exceeded expectations, with revenue of 111.3 billion yuan (yoy +47.4%) and Non-GAAP net profit of 10.7 billion yuan (yoy +64.5%) [5][6] - The IoT business continues to show strong growth, driven by major appliances, with revenue of 32.3 billion yuan (yoy +58.7%) [6] - The automotive business is expected to see an increase in sales and profitability with the upcoming launch of the YU7 model [6][7] - The smartphone segment shows improvement in gross margin and average selling price (ASP), with ASP reaching 1,211 yuan (yoy +5.8%) [7] Summary by Sections Q1 2025 Performance - Overall performance: Revenue of 111.3 billion yuan (yoy +47.4%), exceeding BBG expectations by 2.1%; Non-GAAP net profit of 10.7 billion yuan (yoy +64.5%), exceeding BBG expectations by 17.7% [5] - Business breakdown: - Mobile business: Revenue of 50.6 billion yuan (yoy +8.9%), gross margin of 12.4% [5] - IoT business: Revenue of 32.3 billion yuan (yoy +58.7%), gross margin of 25.2% [5] - Internet business: Revenue of 9.1 billion yuan (yoy +12.8%), gross margin of 76.9% [5] - Smart automotive and innovative business: Revenue of 18.6 billion yuan, gross margin of 23.2% [5] IoT Business Growth - Driven by major appliances, IoT revenue reached 32.3 billion yuan (yoy +58.7%), with significant growth in air conditioning, refrigerators, and washing machines [6] - The gross margin for IoT improved to 25.2%, up 5.3 percentage points year-on-year [6] - A new smart appliance factory is expected to start production in November 2025, aiming for an annual output of 3 million air conditioners by 2026 [6] Automotive Business Outlook - Automotive revenue for Q1 2025 was 18.6 billion yuan, with a gross margin of 23.2% [6] - The YU7 model is set to launch in July 2025, featuring advanced technology and expected to drive sales growth [6][7] Smartphone Segment Performance - The smartphone gross margin improved to 12.4%, with ASP reaching a historical high of 1,211 yuan [7] - Market share in the high-end smartphone segment has increased, particularly in the 4,000-5,000 yuan price range [7] Financial Projections - Revenue projections for 2025, 2026, and 2027 are 482.7 billion yuan, 612.7 billion yuan, and 713.5 billion yuan respectively, with year-on-year growth rates of 31.9%, 26.9%, and 16.5% [8] - Adjusted net profit projections for the same years are 41.2 billion yuan, 56.9 billion yuan, and 69.9 billion yuan, with growth rates of 51.3%, 38.1%, and 22.9% [8]