BOCOM International·2025-06-27 12:21Investment Rating - The report maintains a "Buy" rating for Xiaomi Group (1810 HK) with a target price raised to HKD 67.00, indicating a potential upside of 13.7% from the current closing price of HKD 58.95 [1][12]. Core Insights - The report highlights the official launch of the Xiaomi YU7, along with other products, and has adjusted the sales forecast for Xiaomi's automotive segment for 2025 and 2026 upwards. The YU7 is expected to lead in sales within the SUV segment, contributing significantly to revenue growth [2][6]. - The financial projections show a substantial increase in revenue and net profit over the next few years, with revenue expected to reach RMB 646.16 billion in 2026, up from RMB 270.97 billion in 2023, reflecting a compound annual growth rate (CAGR) of approximately 28.1% [3][13]. - The report emphasizes the importance of production capacity for Xiaomi's automotive business, predicting that new factories will start contributing to production in the second half of 2026, with projected sales of 400,000 and 700,000 units for 2025 and 2026, respectively [6][8]. Financial Overview - Revenue projections for Xiaomi Group are as follows: - 2023: RMB 270,970 million - 2024: RMB 365,906 million - 2025E: RMB 504,404 million - 2026E: RMB 646,164 million - 2027E: RMB 778,515 million - Net profit is projected to grow significantly, reaching RMB 65,250 million by 2027, up from RMB 17,475 million in 2023, indicating a strong growth trajectory [3][13]. - The report also provides earnings per share (EPS) estimates, with a forecast of RMB 2.17 for 2026, reflecting a substantial increase from RMB 0.77 in 2023 [3][14]. Product Launch and Market Position - The Xiaomi YU7 features advanced specifications, including a 0-100 km/h acceleration time of 3.23 seconds and a maximum speed of 253 km/h, positioning it competitively in the electric SUV market [6][7]. - The launch of the first AI glasses by Xiaomi is expected to enhance its ecosystem, with a pricing strategy that slightly exceeds market expectations, indicating potential for long-term growth [6][8].