Investment Rating - The investment rating for Xiaomi Group-W (1810.HK) is "Buy" and is maintained [7]. Core Insights - Xiaomi's moat is built on its core model, focusing on high-end strategies and new retail formats. The company aims to strengthen its foundation in "chips, AI, and OS" while continuing to delve into core technology sectors. The integration of software and hardware will empower the entire ecosystem of people, vehicles, and homes [2][4]. Summary by Sections Event Description - On June 3, Xiaomi held its 2025 Investor Day, where the founder Lei Jun and President Lu Weibing discussed the company's high-end strategy and new retail formats. Xiaomi's moat is attributed to its core model, with a focus on "chips, AI, and OS" as the three foundational pillars of hard technology [2][4]. Smartphone and Consumer Electronics - Xiaomi is entering a balanced development year, with a projected net user inflow of over 13 million in China for 2024. From 2020 to 2024, the market share is expected to increase by 5.3 percentage points. In Q1 2025, global smartphone sales reached 41.8 million units, a year-on-year increase of 3.0%, with a global market share of 14.1% [8]. - In mainland China, sales reached 13.3 million units, a year-on-year increase of 40.0%, reclaiming the top position after 10 years. The average selling price of Xiaomi smartphones in Q1 2025 was 1,210.5 yuan, up 5.7% year-on-year, with a market share of 24.4% in the 4k-5k price range [8]. IoT Business - In Q1 2025, the IoT and lifestyle consumer products segment generated revenue of 32.3 billion yuan, a year-on-year increase of 58.7%, with a gross margin of 25.2%, up 5.4 percentage points. The revenue from major appliances doubled, indicating the initial success of the high-end strategy [8]. Automotive Business - The automotive segment's losses narrowed significantly, with a loss of 500 million yuan in Q1 2025, a reduction of 50.2% quarter-on-quarter. The new YU7 model is expected to launch in July, continuing the product positioning logic of the SU7 series. The automotive business is anticipated to achieve profitability in Q3 to Q4 of this year [8]. Overall Outlook - Xiaomi's comprehensive ecosystem is advancing, with steady growth in smartphones, rapid growth in IoT appliances, and the automotive business. The projected net profits for Xiaomi Group from 2025 to 2027 are 42.39 billion, 55.75 billion, and 70.08 billion yuan, respectively, maintaining a "Buy" rating [8].

Investment Rating - The report gives a positive outlook on Xiaomi Group (1810.HK), indicating a target price of HKD 65-75, suggesting a potential upside of 30%-45% from the current stock price [29]. Core Insights - Xiaomi Group's Q1 2025 performance exceeded market expectations, with total revenue reaching CNY 111.3 billion, a year-on-year increase of 47.4%, and adjusted net profit surpassing CNY 10.7 billion, up 64.5% year-on-year [2][27]. - The smartphone business showed significant growth, with revenue of CNY 50.6 billion, a year-on-year increase of 8.9%, and a global market share that remains in the top three [5][27]. - The electric vehicle segment also demonstrated strong performance, with revenue of CNY 18.6 billion, a year-on-year increase of 10.7%, and a gross margin of 23.2% [14][15]. - The IoT and lifestyle products segment achieved record revenue of CNY 32.3 billion, growing over 55% year-on-year, driven by significant sales in smart home appliances [20][23]. Summary by Sections Smartphone Business - Xiaomi's smartphone revenue reached CNY 50.6 billion in Q1 2025, with a global shipment of 41.8 million units, marking a 3% increase year-on-year [5]. - The average selling price (ASP) of smartphones reached CNY 1,211, a historical high, with high-end models (above CNY 3,000) accounting for 25% of shipments [9]. - The company aims to increase the proportion of mid-to-high-end models and plans to invest CNY 30 billion in R&D in 2025 [9][29]. Electric Vehicle Business - The electric vehicle segment's revenue was CNY 18.6 billion, with a gross margin of 23.2%, significantly higher than competitors [14][15]. - The SU7 series delivered 75,869 units, maintaining a strong market position in the CNY 200,000+ segment [14]. - The company plans to increase its annual delivery target from 300,000 to 350,000 units for 2025 [19]. IoT and Lifestyle Products - The IoT and lifestyle products segment generated CNY 32.3 billion in revenue, with a year-on-year growth of over 55% [20]. - The number of connected IoT devices reached 943.7 million, a 20.1% increase year-on-year [21]. - Xiaomi plans to enhance its product matrix and expand its presence in overseas markets, targeting a 45% share of IoT revenue from international markets by 2025 [21][23]. Internet Services - The internet services segment achieved revenue of CNY 9.1 billion, a year-on-year increase of 12.8%, with a gross margin of 76.9% [23][24]. - The number of MIUI monthly active users reached 719 million, a 9.2% increase year-on-year, indicating strong user growth [24].

Core Insights - In Q1 2025, the company's revenue reached 111.3 billion yuan, a year-on-year increase of 47%, with adjusted net profit at 10.7 billion yuan, up 64%, marking a historical high [1] - Gross margin reached 22.8%, an increase of 0.5 percentage points year-on-year, also a historical high [1] Smartphone Business - Smartphone revenue in Q1 2025 was 50.6 billion yuan, a 9% year-on-year increase, with a gross margin of 12.4% [1] - Global smartphone shipments increased by 3% to 41.8 million units, capturing a market share of 14.1%, ranking among the top three globally [1] - In mainland China, market share increased by 4.7 percentage points to 18.8%, reclaiming the top position in shipments after ten years [1] - The high-end strategy showed significant results, with high-end models accounting for 25.0% of total sales, up 3.3 percentage points year-on-year [1] - The company launched the new flagship model 15S Pro in May 2025, featuring the self-developed Xuanjie O1 chip [1] IoT and Consumer Products - Revenue from IoT and consumer products reached 32.3 billion yuan in Q1 2025, a 59% year-on-year increase, with a gross margin of 25.2%, up 5.4 percentage points [1] Other Business Segments - Tablet shipments increased by 56%, and revenue from smart home appliances surged by 114% in Q1 2025 [2] - As of March 31, 2025, the company's AIoT platform connected approximately 940 million IoT devices (excluding smartphones, tablets, and laptops), a 20% year-on-year growth [2] - Internet services revenue reached 9.1 billion yuan in Q1 2025, a 13% year-on-year increase, with a gross margin of 76.9%, up 2.7 percentage points [2] - Monthly active users globally reached 720 million, a 9% year-on-year increase, with smart TV users at 73 million, up 8% [2] Automotive Business - Revenue from smart electric vehicles and AI-related businesses was 18.6 billion yuan in Q1 2025, with a gross margin of 23.2% [2] - The SU7 series delivered 75,900 new vehicles in Q1 2025, with cumulative deliveries exceeding 258,000 units [2] - The company introduced its first luxury high-performance SUV, the YU7, in May 2025, set to launch in July [2] Profit Forecast and Investment Recommendation - The company forecasts earnings per share of 1.35, 1.82, and 2.27 yuan for 2025-2027, adjusting previous estimates due to revenue and margin updates [2] - Maintaining a comparable company PE valuation of 38 times for 2026, the target price is set at 75.52 HKD, with a buy rating [2]

Core Viewpoint - Xiaomi Group reported record high revenue and adjusted net profit for Q1 2025, driven by strong performance in its smartphone and IOT segments, alongside a strategic focus on cost reduction and efficiency improvement [1][2][3] Financial Performance - Q1 2025 revenue reached 1112.93 billion, a year-over-year increase of 47.4% and a quarter-over-quarter increase of 2.1% [1] - Adjusted net profit for the same period was 106.76 billion, reflecting a year-over-year growth of 64.5% and a quarter-over-quarter growth of 28.4% [1] - Overall gross margin stood at 22.8%, with a year-over-year increase of 0.5 percentage points [1] Business Segments - The smartphone and AIOT segment generated revenue of 927.13 billion, a year-over-year increase of 22.8% [1] - The smart electric vehicle and AI innovation segment achieved revenue of 185.80 billion [1] - IOT business revenue surged to 323.39 billion, marking a year-over-year increase of 58.7% and contributing 29.1% to total revenue [2] - Internet services revenue reached 90.76 billion, with a year-over-year increase of 12.8% [2] Market Position - Xiaomi's smartphone shipments reached 41.8 million units in Q1 2025, a year-over-year increase of 3.0%, maintaining a global market share of 14.1% [2] - In mainland China, Xiaomi regained the top position in smartphone shipments with a market share of 18.8% [2] R&D and Future Outlook - The company plans to invest 2000 billion over the next five years in core technology development [3] - R&D expenditure for Q1 2025 was 67 billion, a year-over-year increase of 30.1% [3] - The launch of self-developed 3nm flagship SoC chip and the open-sourcing of the Xiaomi MiMo model are significant advancements [3] Investment Recommendation - The company is expected to benefit from its brand recognition and supply chain advantages, with projections for revenue and net profit growth from 2025 to 2027 [4] - Forecasted revenues for 2025, 2026, and 2027 are 5062.65 billion, 6052.13 billion, and 7008.88 billion respectively, with corresponding net profits of 357.09 billion, 457.75 billion, and 598.89 billion [4]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of HK$70.00, indicating a potential upside of 36% from the current price of HK$51.55 [3][12][18]. Core Insights - Xiaomi's 1Q25 performance exceeded expectations, with revenue and adjusted net profit reaching RMB 111.2 billion and RMB 10.6 billion, respectively, surpassing forecasts by 3% and 5% [10]. - The smartphone segment showed a 3% year-on-year sales growth, with high-end models accounting for 25% of shipments in China [10]. - The IoT segment experienced a significant revenue increase of 59% year-on-year, driven by a doubling of revenue from IoT home appliances and a 65% increase in sales volume [10]. - The electric vehicle (EV) and AI business generated RMB 18.6 billion in revenue, with a gross margin of 23.2%, higher than the forecasted 20.8% [10]. - Overall gross margin reached 22.8%, the highest since 2017, attributed to improved operational efficiency and increased investment income [10]. Financial Projections - Revenue for 2025 is projected at RMB 481.3 billion, reflecting a 32% year-on-year growth, with adjusted net profit expected to reach RMB 41.9 billion, an 82% increase [16][20]. - The report anticipates a cautious outlook for smartphone shipment growth, projecting a 3% increase in 2025, with price increases being a key growth driver [11]. - Adjusted EPS for 2025 is forecasted to be RMB 1.64, up from RMB 1.57, representing a 5% increase [4][16]. Valuation - The target P/E ratio for 2026 has been adjusted down to 28.5 times adjusted net profit, reflecting ongoing macroeconomic uncertainties [17]. - The valuation remains at an 8% premium compared to Apple's current P/E ratio, based on stronger growth prospects for Xiaomi [17][18].

Investment Rating - The report maintains a "Recommended" rating for Xiaomi Group [6] Core Views - Xiaomi Group achieved record revenue of 1112.93 billion RMB in Q1 2025, representing a year-over-year increase of 47.4% and a quarter-over-quarter increase of 2.1% [2] - The company continues to advance its all-ecosystem strategy, with significant growth in IOT and automotive sectors, contributing to overall revenue growth [2][3] - The company is investing 200 billion RMB over the next five years to deepen its core technology capabilities, including the launch of its self-developed 3nm flagship SoC chip [4] Financial Performance Summary - In Q1 2025, Xiaomi's adjusted net profit reached 106.76 billion RMB, up 64.5% year-over-year, with an adjusted net profit margin of 9.6% [2][3] - The IOT business generated revenue of 323.39 billion RMB, a year-over-year increase of 58.7%, with a gross margin of 25.2% [3] - The smartphone segment reported revenue of 506.12 billion RMB, a year-over-year increase of 8.9%, with a gross margin of 12.4% [3] - The automotive segment achieved revenue of 185.80 billion RMB, with a gross margin of 23.2% [3] Revenue and Profit Forecast - Projected revenues for 2025, 2026, and 2027 are 5062.65 billion RMB, 6052.13 billion RMB, and 7008.88 billion RMB respectively, with corresponding net profits of 357.09 billion RMB, 457.75 billion RMB, and 598.89 billion RMB [4][5] - The report anticipates a PE ratio of 35 for 2025, decreasing to 21 by 2027 [4][5]

经营表现 财务表现 Q：YU7对SU7销量产生影响吗？ A：现在产能还是严重不足，交付周期还很长，此外，两个汽车是同一个平台，有高复用性。公司现在也没法预 估未来SU7和YU7的占比结构，特斯拉Model3和ModelY可以作为参考。 Q：智能工厂对盈利能力的影响？ A：很多制造工厂都是共用平台的，大的工程的逻辑也是可复用的，小米已经跑通了不同品类的通用性和差异 性。 Q：YU7全息激光雷达，对定价的影响？ 家电方面收入增长很快，且高于出货量，这也能看出ASP的提升 季度出货量75869辆（QoQ+8.9%） ASP 23.83万元（QoQ+1.7%） 季度出货量7.5869万辆，SU7累计出货量25.8万辆； 5月YU7正式亮相； 销售网络：已在65个城市开业235家门店。 A：现在还不方便谈价格，但首先，如果产品力不好，那么也是很难有定价能力的，如果产品好，那么盈利不用 担心。 以SU7为例，SU7竞争力很强，在盈利上就很好。 Q：毛利率展望？ A：SU7产品力很强，不像其他竞品卖不好很快就降价了，此外，公司单品出货量很高，有规模经济，最后，公 司内部费用率和外部的渠道效率，都是行业最高的。 此外，公司每 ...

Financial Performance - Xiaomi Group reported total revenue of RMB 1090 million for Q1 2025, representing a year-over-year increase of 30.5% [1] - Gross profit for the same period was RMB 232 million, with a gross margin of 21.4%, which is a 0.05% beat compared to expectations [1] - Net income reached RMB 109 million, showing a significant year-over-year growth of 160.8% [1] R&D and Strategic Initiatives - The company plans to invest over RMB 200 billion in R&D from 2026 to 2030, following a cumulative investment of over RMB 102 billion from 2021 to 2025 [2][3] - Xiaomi's chip team has been re-established since 2019, with a total investment exceeding RMB 13.5 billion and a team size of over 2,500 people [4] - As of March 31, 2025, the R&D personnel reached a historical high of 21,731 [4] Product and Market Strategy - Xiaomi's high-end strategy has led to an increase in global smartphone ASP to RMB 1211, with a 25% market share in the high-end segment in mainland China [13] - The flagship model, Xiaomi 15 Ultra, saw a sales increase of over 90% in its first month compared to the previous generation [13] - The company expanded its offline presence by adding over 1,000 Xiaomi Home stores, bringing the total to nearly 16,000 [13] Smart EV and IoT Business - In Q1 2025, Xiaomi delivered 76,000 smart electric vehicles (EVs), with plans for a second-phase factory to enhance vertical integration capabilities [13] - The IoT business continues to grow rapidly, with the company focusing on optimizing production capacity and maintaining product consistency [6][7]

Core Insights - Xiaomi Group reported a record-breaking Q1 2025 performance with revenue of 111.3 billion yuan, a year-on-year increase of 47.4%, and adjusted net profit exceeding 10 billion yuan, reaching 10.7 billion yuan, up 64.5% [1] - The company emphasized that all business lines are performing well, supported by continuous R&D investment and a successful high-end product strategy [1][2] - Xiaomi's automotive sector showed strong growth, with the SU7 series delivering 75869 units in Q1 and a total of 258,000 units since launch, aiming for an annual delivery target of 350,000 units [1][2] Business Performance - The revenue from Xiaomi's home appliance segment doubled in Q1, with air conditioner shipments exceeding 1.1 million units, a growth of over 65% [2] - Xiaomi aims to rank among the top three in the Chinese retail market for air conditioners by 2030, having completed its full product line and achieved self-research in technology [2] - The average selling price (ASP) of Xiaomi's global smartphones reached a historical high of 1211 yuan, reflecting a 5.8% year-on-year increase [2] Strategic Initiatives - Xiaomi's high-end strategy, initiated five years ago, is transitioning from exploration to systematic planning, with a focus on expanding from high-end to ultra-high-end products and from China to overseas markets [3] - The company's R&D investment in Q1 was 6.7 billion yuan, a 30.1% increase, with an expected total R&D expenditure of 30 billion yuan for the year [3] - Over the next five years, Xiaomi plans to invest 200 billion yuan in R&D, indicating a strong commitment to innovation and product development [3]

Core Viewpoint - Xiaomi Group reported strong financial results for Q1 2025, with significant year-on-year growth in revenue and adjusted net profit, indicating robust performance across its major business segments [1][2]. Financial Performance - Total revenue reached 111.29 billion RMB, a 47.4% increase year-on-year - Adjusted net profit was 10.68 billion RMB, up 64.5% year-on-year - Overall gross margin improved to 22.8%, an increase of 0.5% year-on-year [1] Business Segments - Revenue from the mobile and AIoT segments was 92.71 billion RMB, a 22.8% increase, accounting for 83.3% of total revenue - Smart electric vehicles and AI innovation business generated 18.6 billion RMB, with smart vehicle revenue at 18.1 billion RMB [1] - Mobile business revenue was 50.61 billion RMB, an 8.9% increase, with average selling price (ASP) rising 5.8% to 1211 RMB [1] Market Dynamics - The global smartphone market showed varied performance, with a projected growth of approximately 1.2% and some regions, like Western Europe, experiencing negative growth - The Chinese market is expected to grow by about 3% due to government subsidies [2] - Xiaomi plans to focus on improving product structure rather than solely on sales volume, particularly in Western Europe and emerging markets [2] High-End Strategy - Xiaomi's high-end product market share remains low, particularly for products priced above 6000 RMB - Future strategies will aim to expand high-end offerings from China to international markets across all product categories [2] IoT and Home Appliances - Revenue from IoT and consumer products reached 32.34 billion RMB, a 58.7% increase, with a gross margin of 25.2% - Major appliances revenue grew by 113.8%, with air conditioning products seeing over 65% growth and shipments exceeding 1.1 million units [2] Competitive Landscape - Increased competition in the AIoT sector, with some appliance manufacturers launching products targeting Xiaomi - Xiaomi's home appliance products are still facing supply shortages, and the company acknowledges the need for further development in this area [3] R&D Investment - R&D expenditure for the quarter was 6.7 billion RMB, a 30.1% increase, with the number of R&D personnel reaching a record high of 21,731, making up 47.7% of total employees - The company is in the early stages of developing its own high-end chips, with a long-term view of achieving a sustainable financial model [4]