XIAOMI(HK:01810) HTSC·2025-06-27 02:42Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 71.20 [7][30]. Core Views - The launch of the YU7 SUV has exceeded market expectations with 289,000 units pre-ordered within the first hour, representing 82.5% of the company's previously announced annual shipment target for 2025 [2][4]. - The pricing of the YU7 is in line with market expectations, while its hardware specifications, including a 700 TOPS NVIDIA THOR chip and advanced driver assistance features, are above expectations [2][4]. - The AI glasses launched by the company are lightweight at 40g and feature color-changing technology, which has garnered positive market reception [3][4]. Summary by Sections Product Launch and Market Response - The YU7 SUV was launched with a pre-order of 200,000 units in three minutes and 289,000 units in one hour, significantly surpassing market expectations [2]. - The YU7 is available in nine colors, with a standard version offering a range of 835 km and equipped with advanced technology such as laser radar and a panoramic display [2]. AI Glasses - The AI glasses are priced at RMB 1,999 and weigh only 40g, featuring a Qualcomm AR1 chip and various functionalities including video calls and smart home control [3]. - The glasses have sold out on their launch night, indicating strong consumer interest [3]. Financial Projections - The report maintains net profit forecasts for 2025-2027 at RMB 41 billion, RMB 51.3 billion, and RMB 63.2 billion respectively, reflecting a robust growth trajectory [4][6]. - The target price of HKD 71.20 is based on a sum-of-the-parts (SOTP) valuation method, which includes a valuation of HKD 26.3 per share for the automotive business [4][30]. Valuation Metrics - The report projects a revenue increase from RMB 270.97 billion in 2023 to RMB 727.78 billion in 2027, with a compound annual growth rate (CAGR) of approximately 20.13% [6][38]. - The expected earnings per share (EPS) are projected to grow from RMB 0.76 in 2023 to RMB 2.52 in 2027, indicating strong profitability growth [6][38].