XIAOMI(01810) 东吴证券·2024-05-25 20:01Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported Q1 2024 earnings that exceeded market expectations, achieving revenue of 75.5 billion RMB, a year-on-year increase of 27%, and an adjusted net profit of 6.5 billion RMB, a year-on-year increase of 101%, marking a historical high [2][3] Summary by Sections Mobile Business - In Q1, the mobile business generated revenue of 46.5 billion RMB, a year-on-year increase of 33%, with a gross margin of 14.8%, up 3.6 percentage points year-on-year. The company shipped 40.6 million smartphones, a year-on-year increase of 34%, significantly outperforming the global average growth rate of 9.8%. The market share stood at 13.8%, maintaining a position among the top three globally for fifteen consecutive quarters [3] IoT and Internet Business - The IoT and lifestyle consumer products segment achieved revenue of 20.4 billion RMB in Q1, a year-on-year increase of 21%, with a gross margin of 19.9%, a historical high, up 4.1 percentage points year-on-year. Key categories showed healthy growth, with TWS shipments ranking second globally and first in mainland China. Wearable product shipments in mainland China increased by 70%, while tablet shipments globally rose by 93%, and smart home appliance revenue grew by 46% [4] - The internet business generated revenue of 8 billion RMB in Q1, a historical high, with a year-on-year increase of 15% and a gross margin of 74.2%, up 1.9 percentage points year-on-year. Advertising revenue was 5.5 billion RMB, and gaming revenue was 1.2 billion RMB. The user base continues to expand, with monthly active users reaching a historical high, creating a positive ecosystem with the mobile and IoT businesses [4] Automotive Business - As of April 30, the company had accumulated 88,063 orders for the SU7 model. The target for this year is to ensure the delivery of 100,000 vehicles, with aspirations to deliver 120,000. Starting in June, the company will implement a double-shift system in its factories, aiming to deliver at least 10,000 vehicles that month. The sales network will also be expanded, with plans to cover 46 cities with 219 stores and 86 cities with 143 service centers by the end of the year [5] Earnings Forecast and Investment Rating - The earnings forecast for the company has been adjusted upwards for 2024-2026, with expected net profits of 16.1 billion, 19.7 billion, and 22.6 billion RMB respectively. The latest closing price corresponds to P/E ratios of 28.3, 23.2, and 20.0 for the respective years, maintaining a "Buy" rating [5]