Soochow Securities·2026-03-16 02:24Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report anticipates short-term performance pressure but remains optimistic about the smart terminal ecosystem benefiting from advancements in AI [1] - The company is expected to continue gaining market share in the high-end smartphone segment and its automotive business is projected to achieve profitability [1] - Adjustments to net profit forecasts for 2025-2027 have been made due to rising storage costs, with expected net profits of 42.7 billion, 34.7 billion, and 37.4 billion respectively [1] Financial Projections - Total revenue is projected to grow from 270.97 billion in 2023 to 549.22 billion by 2027, with a compound annual growth rate (CAGR) of approximately 10% [1] - The net profit attributable to shareholders is expected to increase significantly in 2024, followed by a decline in 2026, before recovering in 2027 [1] - The company's earnings per share (EPS) is forecasted to rise from 0.67 in 2023 to 1.43 in 2027 [1] Business Segments - Smartphones: The company is expected to see a decline in smartphone revenue in Q4 2025 due to rising storage prices, but long-term prospects remain strong due to a shift towards high-end models [1] - IoT and Consumer Products: Revenue for this segment is projected to grow by 21% year-on-year, with stable gross margins expected [1] - Internet Services: Anticipated revenue growth of 10% for the year, maintaining high gross margins [1] - Smart Automotive and Innovation: The automotive segment is expected to see over 200% revenue growth year-on-year, with a gross margin of 23% [1] AI and Innovation - The company has launched a new AI model, Xiaomi MiMo-V2-Flash, which is expected to enhance user experience across its ecosystem [1] - The report highlights the potential for AI technology to empower user experiences within the company's integrated ecosystem of products [1]