2024-03-06 16:00Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [1][2] Core Insights - The performance of the Xiaomi 14 smartphone in the Chinese market is strong, with a global smartphone shipment of 41.6 million units in Q4 2023, representing a year-on-year increase of 25% and a market share of 13% [1] - The IoT and consumer products segment shows significant growth, with wearable device shipments increasing by 45% year-on-year and tablet shipments rising by 113% year-on-year [1] - The internet business is expected to see continued growth in monthly active users (MAU) and advertising revenue, with an estimated annual revenue of 29.9 billion RMB, reflecting a year-on-year increase of 6% [1] Summary by Relevant Sections Smartphone Business - Xiaomi 14 was launched with strong performance in China, achieving a monthly activation growth of 44.1% in November and regaining the top market share in the premium segment [1] - The estimated annual revenue for the smartphone business is projected at 155.5 billion RMB, a year-on-year decrease of 7% [1] IoT and Consumer Products - Global shipments of wearable devices increased by 45% year-on-year, capturing an 11% market share, while tablet shipments reached 1.7 million units, marking a 113% year-on-year growth [1] - The estimated annual revenue for this segment is 80.5 billion RMB, reflecting a year-on-year increase of 1% [1] Internet Business - The strong performance in smartphone shipments is expected to enhance MAU and the proportion of high-end users, driving advertising revenue growth [1] - The estimated annual revenue for the internet business is projected at 29.9 billion RMB, representing a year-on-year increase of 6% [1] Electric Vehicle Business - Xiaomi's first electric vehicle, the SU7, was unveiled, with key technologies announced, including the Qualcomm Snapdragon 8295 chip and NVIDIA Orin chip [2] - The vehicle is expected to start deliveries in Q2 2024, although pricing details have not yet been disclosed [2] Financial Projections - Revenue projections for 2023-2025 are estimated at 269.3 billion RMB, 295.3 billion RMB, and 316.9 billion RMB, respectively, with adjusted net profits of 18.8 billion RMB, 21.9 billion RMB, and 22.6 billion RMB [3][4] - Adjusted EPS is forecasted to be 0.75 RMB, 0.88 RMB, and 0.91 RMB for the respective years [3][4]