XIAOMI(01810) 东方财富证券·2024-03-28 16:00Investment Rating - Maintain "Overweight" rating [3] Core Views - Xiaomi Group achieved revenue of 270.97 billion yuan in 2023, a year-on-year decrease of 3.24%, with Q4 revenue of 73.244 billion yuan, a year-on-year increase of 10.9% [2] - Net profit attributable to the parent company in 2023 was 17.475 billion yuan, a year-on-year increase of 606.34%, with Q4 net profit of 4.727 billion yuan, a year-on-year increase of 50.02% [2] - The company's global smartphone market share reached 12.8% in 2023, maintaining its position in the top three globally for three consecutive years [2] - Xiaomi's high-end strategy showed significant progress in 2023, with a 16.9% market share in the RMB 4,000-6,000 price segment in mainland China, an increase of 9.2 percentage points year-on-year [2] - The company's AIoT platform connected 739 million IoT devices by the end of 2023, a year-on-year increase of 25.5% [2] - Internet service revenue grew by 6.3% year-on-year in 2023, with advertising revenue reaching 20.5 billion yuan, a year-on-year increase of 11.2% [2] - Xiaomi announced a strategic upgrade to the "Human x Car x Home" ecosystem and launched the Xiaomi HyperOS, with the Xiaomi SU7 series positioning as a C-class high-performance eco-tech sedan [2] Financial Performance - Smartphone business gross margin improved to 14.6% in 2023, up 5.6 percentage points year-on-year [2] - IoT and lifestyle products gross margin reached 16.3%, up 1.9 percentage points year-on-year [2] - Internet business gross margin was 74.2%, up 2.4 percentage points year-on-year [2] - The company repurchased 126.6 million shares in 2023, totaling HK$1.5 billion [2] - Revenue forecast for 2024/2025/2026 is 294.919/316.801/340.272 billion yuan, with net profit attributable to the parent company expected to be 18.553/19.897/21.809 billion yuan [5] Market Position and Strategy - Xiaomi's high-end smartphone shipments accounted for over 20% of total smartphone shipments in mainland China in 2023 [2] - The company achieved significant market share growth in the Middle East, Latin America, and Africa, with increases of 1.3%, 1.2%, and 2.4% respectively [2] - Xiaomi ranked third in tablet shipments and second in wearable wristband devices in mainland China in 2023 [2] - The new Xiaomi smartphone smart factory, with an annual capacity of 10 million units, officially started production in February 2024 [2] Future Outlook - Xiaomi's strategic focus on the "Human x Car x Home" ecosystem is expected to open new growth opportunities [5] - The company's high-end strategy and technological innovation are likely to drive further market share gains and profitability improvements [5]