XIAOMI(01810) 光大证券·2024-05-27 00:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 22.80 HKD, compared to the current price of 18.30 HKD [4]. Core Insights - The company achieved a record high adjusted net profit margin in Q1 2024, with a significant year-on-year revenue increase of 27% to 755 billion RMB. The three core business segments—smartphones, IoT, and internet services—showed strong growth, with revenues increasing by 32.9%, 21.0%, and 14.5% respectively [2][3]. - The SU7 electric vehicle model has received over 88,000 pre-orders, with a target of delivering 120,000 units for the year [3]. Summary by Sections Financial Performance - Q1 2024 revenue reached 755 billion RMB, up 27% year-on-year. The adjusted net profit was 6.5 billion RMB, marking a 100.8% increase, with a historical high net profit margin of 8.6% [2]. - The smartphone segment generated 465 billion RMB in revenue, with a shipment volume of 4.06 million units, reflecting a 33.7% year-on-year increase [2][3]. - IoT revenue grew by 21.0% to 204 billion RMB, achieving a record high gross margin of 19.9% [2]. - Internet services revenue increased by 14.5% to 80 billion RMB, with a gross margin of 74.2% [2]. Business Segments - The smartphone business saw a gross margin of 14.8%, despite a slight decline due to increased BOM costs and inventory provisions. The expected gross margin for the smartphone segment for the full year is projected to be between 12-13% [2]. - The IoT segment's strong performance is attributed to high-margin products such as tablets and smart appliances, with expectations for a gross margin above 18% for the year [2]. - The internet services segment is expected to benefit from an increasing global user base and higher-end device sales, driving revenue growth [2]. Future Outlook - The company has adjusted its profit forecasts for 2024, 2025, and 2026, increasing the Non-IFRs net profit estimates to 16.6 billion, 18.3 billion, and 21 billion RMB respectively [3]. - The report anticipates continued growth driven by the successful launch of the SU7 and improvements in the company's core business operations [3].