Guoxin Securities·2025-11-27 14:57Investment Rating - The investment rating for Xiaomi Group-W (01810.HK) is "Outperform the Market" [6]. Core Insights - In Q3 2025, Xiaomi achieved a record high profit with total revenue of 113.12 billion yuan, representing a year-over-year increase of 22.3% and a quarter-over-quarter decrease of 2.4%. Adjusted net profit reached 11.31 billion yuan, up 80.9% year-over-year and 4.4% quarter-over-quarter. The gross margin improved to 22.9%, an increase of 2.5 percentage points year-over-year and 0.4 percentage points quarter-over-quarter [2][4]. - The smart electric vehicle (EV) business reported its first quarterly profit, generating an operating income of 700 million yuan. In Q3 2025, the company delivered 109,000 new vehicles, with automotive revenue reaching 28.3 billion yuan and a gross margin of 25.5% [2][3]. - The smartphone and AIoT business remained stable, with smartphone revenue of 46 billion yuan and a global shipment of 43.3 million units, maintaining a market share of 13.6%. The newly launched Xiaomi 17 series saw a sales increase of approximately 30% in its first month [3][4]. Summary by Sections Financial Performance - Q3 2025 total revenue was 113.12 billion yuan, with adjusted net profit at 11.31 billion yuan. The gross margin was 22.9% [2][4]. - The company expects net profit for 2025-2027 to be 43 billion, 51.4 billion, and 62.3 billion yuan respectively, with year-over-year growth rates of 82%, 19%, and 21% [4][5]. Business Segments - The smartphone segment generated 46 billion yuan in revenue, while the IoT and lifestyle products segment brought in 27.6 billion yuan, with a gross margin of 23.9% [3][4]. - The smart EV segment achieved a revenue of 28.3 billion yuan, with a gross margin of 25.5% [2][3]. Research and Development - R&D expenses reached 9.1 billion yuan in Q3 2025, reflecting a year-over-year increase of 52.1%. The company continues to invest heavily in core technologies to enhance its ecosystem [3][4].