Soochow Securities·2025-11-19 15:00Investment Rating - The report maintains a "Buy" rating for Xiaomi Group-W (01810.HK) [1] Core Insights - The company achieved a revenue of 113.12 billion yuan in Q3 2025, representing a year-on-year increase of 22.3% and a quarter-on-quarter decrease of 2.4% [7] - Adjusted net profit for Q3 2025 was 11.31 billion yuan, up 80.9% year-on-year and 4.4% quarter-on-quarter [7] - The automotive segment turned profitable for the first time, with revenue from automotive and AI-related businesses reaching 29.01 billion yuan, a year-on-year increase of 199.2% [7] - High-end smartphone sales showed strong performance, with Q3 2025 smartphone revenue at 45.97 billion yuan, a year-on-year decrease of 3.1% but a quarter-on-quarter increase of 1.0% [7] - The IoT segment generated revenue of 27.55 billion yuan, up 5.6% year-on-year, although it saw a quarter-on-quarter decline of 28.8% [7] Financial Projections - Total revenue projections for 2023A, 2024A, 2025E, 2026E, and 2027E are 270.97 billion yuan, 365.91 billion yuan, 474.58 billion yuan, 591.85 billion yuan, and 669.07 billion yuan respectively [1] - Net profit projections for the same years are 17.48 billion yuan, 23.66 billion yuan, 45.32 billion yuan, 52.96 billion yuan, and 65.61 billion yuan respectively [1] - The report adjusts the net profit forecast for 2025-2027 to 45.3 billion yuan, 53.0 billion yuan, and 65.6 billion yuan, reflecting a positive outlook on the company's performance [7] Market Position - The company has expanded its automotive sales network to 402 stores and 209 service points, covering 119 and 125 cities respectively [7] - The market share for smartphones priced above 3,000 yuan in mainland China increased by 4.1 percentage points to 24.1% [7] - The report highlights the company's ongoing efforts in high-end product development, with the new Xiaomi 17 series achieving a 30% increase in sales compared to the previous generation [7]