Orient Securities·2026-03-08 15:25Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of HKD 52.17, based on a 28x PE valuation for 2026 [3][5]. Core Insights - The report predicts earnings per share (EPS) for 2025-2027 to be CNY 1.53, CNY 1.63, and CNY 2.29 respectively, with adjustments made to revenue and gross margin forecasts [3][11]. - Xiaomi's automotive business is showing strong momentum, preparing for large-scale production of the new SU7 model, with impressive delivery numbers in late 2025 [10]. - The introduction of the Xiaomi miclaw mobile agent is expected to significantly enhance AI capabilities and user experience within Xiaomi's ecosystem, marking a substantial advancement in system-level execution capabilities [10]. Financial Projections - Revenue projections for 2023A to 2027E are as follows: CNY 270,970 million, CNY 365,905 million, CNY 453,633 million, CNY 527,008 million, and CNY 657,491 million, with year-on-year growth rates of -3%, 35%, 24%, 16%, and 25% respectively [4]. - Operating profit is forecasted to grow from CNY 20,009 million in 2023A to CNY 66,264 million in 2027E, with a significant increase of 610% in 2024A [4]. - Net profit attributable to the parent company is expected to rise from CNY 17,475 million in 2023A to CNY 59,851 million in 2027E, reflecting a growth rate of 606% in 2024A [4]. Valuation Metrics - The report provides a comparison of Xiaomi's valuation metrics with peers, indicating a PE ratio of 44 for 2023A, decreasing to 13 by 2027E, and a PB ratio of 4.7 in 2023A, decreasing to 2.3 by 2027E [4][12].