Orient Securities·2025-10-29 12:00Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of 71.65 HKD, based on a 32x PE valuation for 2026 [3][6]. Core Insights - The report highlights strong performance in automotive deliveries and sales of the Xiaomi 17 series, with a notable increase in monthly deliveries exceeding 40,000 units in September 2025 [2][9]. - The company is expected to see significant growth in earnings per share, projected at 1.63, 2.06, and 2.60 CNY for 2025, 2026, and 2027 respectively [3][10]. - Revenue forecasts show a recovery with expected growth rates of 35% in 2024 and 31% in 2025, followed by 24% growth in 2026 and 2027 [5][10]. Financial Summary - Revenue (in million CNY) is projected to grow from 270,970 in 2023 to 735,676 in 2027, with a compound annual growth rate (CAGR) of approximately 24% [5]. - Operating profit is expected to increase significantly from 20,009 million CNY in 2023 to 74,753 million CNY in 2027, reflecting a growth rate of 610% in 2024 [5]. - Net profit attributable to the parent company is forecasted to rise from 17,475 million CNY in 2023 to 67,848 million CNY in 2027, with a growth rate of 606% in 2024 [5]. - The gross margin is expected to improve from 21.7% in 2023 to 24.0% in 2027, while the net margin is projected to increase from 6.4% to 9.2% over the same period [5].