Core Insights - Xiaomi's new delivery center in Shanghai's Pudong New Area officially commenced operations on December 6, marking a significant expansion of its service network in East China [2][4] - The center aims to provide a one-stop, high-end delivery experience that integrates vehicle delivery, product experience, and after-sales service, enhancing user interaction and brand warmth [3][4] Group 1: Delivery Center Features - The delivery center is strategically located in the Shanghai Free Trade Zone and is designed to efficiently serve the Yangtze River Delta urban agglomeration [2] - It features efficient delivery stations and dedicated high-end stations, optimizing the delivery process with an average delivery time of 60-90 minutes [3] - Users receive personalized guidance from professional delivery consultants to ensure they can easily master the vehicle's smart features from the start [3] Group 2: Customer Experience - The center includes a VIP communication area and a premium accessory display area, allowing users to conveniently purchase original parts and related products while enjoying refreshments [3] - A test drive area with an approximately 8-kilometer route simulates real-world driving conditions, showcasing the vehicle's core performance across various scenarios [3] Group 3: Strategic Importance - The establishment of the delivery center reflects Xiaomi's deep consideration of smart mobility services, aiming to create an interactive and professional user space [4] - Shanghai is a key city in Xiaomi's "human-vehicle-home ecosystem" strategy, playing a crucial role in the company's national layout [4] - Xiaomi plans to continuously optimize the entire lifecycle service chain, from pre-sales consultation to after-sales support, ensuring users enjoy a seamless experience with their vehicles [4]

Core Insights - Xiaomi is focusing on technological innovation as a key driver for high-quality development, with significant investments in research and development planned for the coming years [3][4]. Group 1: Technological Innovation - Xiaomi's self-developed 3nm processor, the Xuanjie O1, integrates approximately 19 billion transistors, showcasing the company's commitment to advanced technology [2]. - The company plans to invest over 24 billion yuan in R&D in 2024, with a projected total of over 200 billion yuan in the next five years [3]. - Xiaomi's R&D workforce exceeds 24,000, accounting for nearly 50% of its total employees, emphasizing the importance of innovation in its business model [3]. Group 2: Smart Manufacturing - Xiaomi's automotive factory utilizes advanced manufacturing techniques, including a 9,100-ton die-casting machine that reduces manufacturing processes by 80% and production time by 45% [6]. - The company has established three large smart factories for automotive, smartphones, and smart home appliances, implementing a digital and intelligent manufacturing platform [7]. - Xiaomi's smart manufacturing platform connects over 200 manufacturing enterprises, enhancing production efficiency and product quality across various sectors [7]. Group 3: Global Expansion - Xiaomi ranks among the top three smartphone vendors in 57 countries and regions, with significant market presence in Latin America and the Middle East [8][9]. - The company is expanding its retail presence in Southeast Asia, with plans to open over 130 new stores by the first three quarters of 2025, enhancing brand visibility and consumer experience [9]. - Xiaomi's global operations have created over 2,000 foreign jobs and established 11 cooperative factories in seven countries, contributing to local economic development [10]. Group 4: Brand Perception - The emphasis on innovation and quality is reshaping the global perception of Chinese technology companies, with Xiaomi leading this change [11].

Investment Rating - The investment rating for Xiaomi Group-W (01810.HK) is "Outperform the Market" [6]. Core Insights - In Q3 2025, Xiaomi achieved a record high profit with total revenue of 113.12 billion yuan, representing a year-over-year increase of 22.3% and a quarter-over-quarter decrease of 2.4%. Adjusted net profit reached 11.31 billion yuan, up 80.9% year-over-year and 4.4% quarter-over-quarter. The gross margin improved to 22.9%, an increase of 2.5 percentage points year-over-year and 0.4 percentage points quarter-over-quarter [2][4]. - The smart electric vehicle (EV) business reported its first quarterly profit, generating an operating income of 700 million yuan. In Q3 2025, the company delivered 109,000 new vehicles, with automotive revenue reaching 28.3 billion yuan and a gross margin of 25.5% [2][3]. - The smartphone and AIoT business remained stable, with smartphone revenue of 46 billion yuan and a global shipment of 43.3 million units, maintaining a market share of 13.6%. The newly launched Xiaomi 17 series saw a sales increase of approximately 30% in its first month [3][4]. Summary by Sections Financial Performance - Q3 2025 total revenue was 113.12 billion yuan, with adjusted net profit at 11.31 billion yuan. The gross margin was 22.9% [2][4]. - The company expects net profit for 2025-2027 to be 43 billion, 51.4 billion, and 62.3 billion yuan respectively, with year-over-year growth rates of 82%, 19%, and 21% [4][5]. Business Segments - The smartphone segment generated 46 billion yuan in revenue, while the IoT and lifestyle products segment brought in 27.6 billion yuan, with a gross margin of 23.9% [3][4]. - The smart EV segment achieved a revenue of 28.3 billion yuan, with a gross margin of 25.5% [2][3]. Research and Development - R&D expenses reached 9.1 billion yuan in Q3 2025, reflecting a year-over-year increase of 52.1%. The company continues to invest heavily in core technologies to enhance its ecosystem [3][4].

Group 1: Market Overview - On November 21, the Hong Kong stock market saw a net inflow of 105 million HKD from northbound trading, with a net buy of 498 million HKD from the Shanghai Stock Connect and a net sell of 393 million HKD from the Shenzhen Stock Connect [2] - The most bought stocks included Tencent (00700), Xiaomi Group-W (01810), and Alibaba-W (09988), while the most sold stocks were the Tracker Fund of Hong Kong (02800), Hua Hong Semiconductor (01347), and Ganfeng Lithium (01772) [2] Group 2: Stock Performance - Alibaba-W had a net inflow of 8.47 billion HKD, with a buy amount of 41.80 billion HKD and a sell amount of 33.33 billion HKD [3] - Xiaomi Group-W recorded a net inflow of 9.48 billion HKD, with a buy amount of 29.79 billion HKD and a sell amount of 20.31 billion HKD [3] - Tencent Holdings had a net inflow of 9.61 billion HKD, with a buy amount of 22.87 billion HKD and a sell amount of 13.25 billion HKD [3] Group 3: Sector Insights - Northbound funds are actively buying technology stocks, with Tencent, Alibaba, Kuaishou-W, and Meituan-W receiving significant net buys [6] - Xiaomi Group-W's strong third-quarter performance, with a revenue increase of 22.3% to 113.1 billion HKD and a net profit growth of 80.9% to 11.3 billion HKD, is driven by its high-end smartphone strategy and automotive business [6] - Semiconductor stocks like SMIC (00981) and Hua Hong Semiconductor (01347) faced net sells of 1.89 billion HKD and 3.37 billion HKD respectively, amid reports of potential delays in U.S. semiconductor import tariffs [7] Group 4: Commodity Market Impact - Ganfeng Lithium (01772) experienced a net sell of 1.9 billion HKD, influenced by recent adjustments in lithium carbonate futures trading fees and limits, leading to a drop in futures prices [7] - The overall sentiment in the lithium market is shifting as recent price movements are increasingly driven by market speculation rather than fundamental supply-demand dynamics [7] Group 5: ETF Performance - The Southern Hang Seng Technology ETF (03033) saw a net buy of 72.34 million HKD, while the Tracker Fund of Hong Kong (02800) faced a significant net sell of 5.142 billion HKD [8] - The divergence in ETF performance reflects broader market uncertainties, particularly regarding U.S. interest rate policies and inflation concerns [8]

Core Viewpoint - Guosheng Securities has set a target price of HKD 52 for Xiaomi Group-W (01810) and reiterated a "Buy" rating, citing strong Q3 performance with a 22.3% year-on-year revenue growth to CNY 113.1 billion and a record adjusted net profit of CNY 11.3 billion, up 80.9% year-on-year, driven by the high-end smartphone strategy and automotive business [1][2]. Financial Performance - In Q3 2025, Xiaomi Group achieved revenue of CNY 113.1 billion, a 22.3% increase year-on-year. Revenue breakdown includes approximately CNY 46 billion from smartphones, CNY 27.6 billion from IoT, CNY 9.4 billion from internet services, and CNY 29 billion from automotive and AI businesses. The adjusted net profit reached CNY 11.3 billion, marking a historical high with an 80.9% year-on-year growth [2]. Business Aspects - **Smartphones**: Xiaomi continues to push for high-end market penetration, with global smartphone shipments reaching 43.3 million units, a 0.5% year-on-year increase. The global market share stands at approximately 13.6%, ranking in the top three, while the domestic market share is about 16.7%, ranking second. High-end smartphone sales in mainland China accounted for 24.1% of total sales, with a market share of 18.9% in the CNY 4,000-6,000 price range. The Xiaomi 17 series, particularly the Pro and Pro Max models, accounted for over 80% of sales, indicating an optimized product structure [3]. - **IoT**: Xiaomi's AIoT platform has surpassed 1 billion connected devices, reflecting a 20.2% year-on-year growth. The company ranks among the top five in global tablet shipments, second in TWS earphones, and first in wearable wristband devices. Monthly active users for the Mi Home app and Xiao Ai exceeded 110 million and 150 million, respectively. The launch of a smart home appliance factory in October 2025 marks a significant step in closing the industry loop from design to production [3]. Automotive and AI Innovation - Xiaomi's automotive and AI innovation business achieved its first quarterly profit, with vehicle deliveries reaching approximately 109,000 units, a historical high. The Xiaomi YU7 series ranked first in the mainland SUV sales chart in October 2025, and the operating profit for this segment was around CNY 700 million [4]. Profit Forecast and Rating - Guosheng Securities anticipates that in the short term, Xiaomi's smartphone and automotive sectors may face challenges due to subsidy adjustments and rising raw material costs. However, Xiaomi's strong market position and high-end strategy provide a competitive edge. The long-term outlook remains positive due to the "full ecosystem" strategy. Revenue projections for 2025-2027 are CNY 470 billion, CNY 557 billion, and CNY 694 billion, with non-GAAP net profits of approximately CNY 44 billion, CNY 50.1 billion, and CNY 65 billion, respectively. The target price of HKD 52 is based on a 20x P/E for the consumer electronics segment and a 2.5x P/S for the automotive and AI innovation business, reaffirming the "Buy" rating [5].

Core Viewpoint - Guosheng Securities has given Xiaomi Group-W (01810) a target price of HKD 52 and reiterated a "Buy" rating, citing strong Q3 performance with a 22.3% year-on-year revenue growth to CNY 113.1 billion and a record adjusted net profit of CNY 11.3 billion, up 80.9% year-on-year, driven by the high-end smartphone strategy and automotive business [1][2]. Financial Performance - In Q3 2025, Xiaomi Group achieved revenue of CNY 113.1 billion, a 22.3% increase year-on-year. Revenue breakdown includes approximately CNY 46 billion from smartphones, CNY 27.6 billion from IoT, CNY 9.4 billion from internet services, and CNY 29 billion from automotive and AI businesses. The adjusted net profit reached CNY 11.3 billion, marking a historical high with an 80.9% year-on-year growth [2]. Business Aspects - **Smartphones**: Xiaomi continues to push for high-end market penetration, with global smartphone shipments reaching 43.3 million units, a 0.5% year-on-year increase. The company holds approximately 13.6% of the global market share, ranking in the top three, and 16.7% in mainland China, ranking second. High-end smartphone sales in mainland China accounted for 24.1% of total sales, with a market share of 18.9% in the CNY 4,000-6,000 price range. The Xiaomi 17 series, particularly the Pro and Pro Max models, accounted for over 80% of sales, indicating an optimized product structure [3]. - **IoT**: Xiaomi's AIoT platform has surpassed 1 billion connected devices, reflecting a 20.2% year-on-year growth. The company ranks first in global shipments of wearable wristbands and second in TWS earphones. The launch of a smart home appliance factory in October 2025 marks a significant step in closing the design, R&D, production, and validation loop for its major appliance business [3]. Automotive and AI Innovation - Xiaomi's automotive and AI innovation business achieved its first quarterly profit, with approximately 109,000 vehicles delivered, setting a new record. The Xiaomi YU7 series ranked first in the SUV sales chart in mainland China in October 2025, with operating income from this segment reaching approximately CNY 700 million [4]. Profit Forecast and Rating - Guosheng Securities anticipates that Xiaomi Group will maintain relative competitiveness in the face of short-term industry disruptions, given its leading market share and successful high-end strategy. The company projects revenues of CNY 470 billion, CNY 557 billion, and CNY 694 billion for 2025-2027, with non-GAAP net profits of approximately CNY 44 billion, CNY 50.1 billion, and CNY 65 billion respectively. The target price of HKD 52 is based on a 20x P/E for the consumer electronics segment and a 2.5x P/S for the automotive and AI innovation business, reaffirming the "Buy" rating [5].

Core Insights - The report highlights the competitive advantage of Tabo (滔搏) in the retail sector, emphasizing its strong retail capabilities and high dividend payouts to investors [4][5] - The report projects Tabo's revenue and net profit for FY2025 to FY2027, indicating a slight decline in revenue but a recovery in net profit growth by FY2027 [4][5] Company Overview - Tabo is identified as the largest sports retail and service platform in China, collaborating with major brands such as Nike and Adidas [4] - The company experienced a revenue decline of 7% in FY2025 and a projected decline of 6% in FY2026H1, with net profit dropping by 42% and 10% respectively [4][5] Financial Projections - Revenue forecasts for Tabo are set at 946 billion, 953 billion, and 1,005 billion RMB for FY2025, FY2026, and FY2027 respectively, with year-on-year growth rates of 1.2%, 0.8%, and 5.5% [4] - The net profit estimates are 37.1 billion, 52.8 billion, and 61 billion RMB for the same years, with growth rates of -8.7%, 42.4%, and 15.5% [4] Investment Recommendations - The report maintains a "buy" rating for Tabo, citing its robust dividend payout history of 107.3% since its IPO in 2019 and a current cash position of 2.54 billion RMB [5] - The expected price-to-earnings ratio for FY2026 is 14.6, with a dividend yield of 7% [5] Industry Context - The report discusses the broader retail environment, noting challenges such as fluctuating consumer demand and the need for effective e-commerce strategies [5] - It emphasizes the importance of Tabo's strong brand partnerships and retail efficiency in maintaining its competitive edge in the market [4][5]

Core Viewpoint - Xiaomi is navigating a dual battle in the automotive and IoT sectors, achieving profitability in its electric vehicle division while facing challenges in regaining consumer trust and adapting its business model from a "traffic-driven" to a "value-driven" approach [4][30]. Automotive Battle: Profitability and Challenges - Xiaomi's revenue for Q3 2025 reached 113.1 billion yuan, a year-on-year increase of 22.3%, with adjusted net profit hitting a record high of 11.3 billion yuan, up 80.9% [8]. - The electric vehicle division achieved its first quarterly profit of 700 million yuan, a significant milestone compared to competitors like Li Auto and NIO, which took longer to reach profitability [9]. - Xiaomi's automotive production and delivery are ramping up, with Q3 2025 deliveries reaching 108,796 vehicles, marking a new high [13]. - The gross margin for the electric vehicle division stands at 25.5%, with an average post-tax price of around 260,000 yuan, comparable to luxury brands [14]. - Despite these achievements, challenges loom, including a potential decline in gross margin due to reduced government subsidies and increased competition in the automotive sector [16]. IoT and Home Appliances: Growth and Competition - Xiaomi's IoT and home appliance business generated 27.6 billion yuan in revenue for Q3 2025, a 5.6% year-on-year increase, with a gross margin of 23.9% [22]. - The company has seen a significant rise in its air conditioning market share, reaching 16.71% in July 2025, surpassing Gree and ranking second behind Midea [21]. - However, the smart home appliance segment experienced a 15.7% year-on-year revenue decline, attributed to subsidy reductions and intensified competition [23]. - Xiaomi is investing in smart manufacturing, with a new factory in Wuhan aimed at enhancing production capabilities and efficiency [26]. Rebuilding Consumer Trust - Xiaomi faces significant challenges in restoring consumer trust following several incidents, including a tragic accident involving its SU7 model and subsequent safety concerns [28]. - The company is under pressure to redefine its brand image and ensure product safety as it transitions from a smartphone-centric business to a broader technology and manufacturing focus [30]. - Xiaomi's strategy involves a shift from being an internet-driven company to a mission-driven technology firm, emphasizing safety and user-centric values [30].

Core Viewpoint - Xiaomi Group reported a strong performance in Q3 2023, achieving revenue of 113.1 billion yuan, a year-on-year increase of 22.3%, and an adjusted net profit of 11.3 billion yuan, marking an 80.9% increase, the highest in its history [2][4]. Group 1: Core Business Growth and Innovation Acceleration - The revenue from Xiaomi's mobile and AIoT segments reached 84.1 billion yuan, with smartphone revenue at 46 billion yuan and IoT and lifestyle products at 27.6 billion yuan, showing a year-on-year growth of 5.6% [7][10]. - Xiaomi's smartphone shipments reached 43.3 million units in Q3, marking nine consecutive quarters of year-on-year growth, maintaining a top-three global ranking for 21 quarters [8][10]. - The innovative business segment, including smart electric vehicles and AI, generated 29 billion yuan in revenue, with a staggering year-on-year growth of over 199% [10][13]. Group 2: R&D Investment and Future Growth - Xiaomi's total revenue for the first three quarters of the year reached 340.4 billion yuan, nearing last year's total, with adjusted net profit exceeding last year's figure at 32.8 billion yuan [2][4]. - The company invested 23.5 billion yuan in R&D in the first three quarters, approaching the total planned investment for 2024, with expectations to exceed 30 billion yuan for the year [22][26]. - Xiaomi plans to invest 200 billion yuan in core technology R&D over the next five years, transitioning from an internet company to a hard-tech company [26][28]. Group 3: Market Position and Competitive Edge - Xiaomi's new flagship Xiaomi 17 series achieved over 1 million sales within five days of launch, indicating strong market acceptance and competitive positioning against rivals like Apple [14][16]. - The company has established a robust ecosystem with over 1 billion connected IoT devices, and the number of users with five or more connected devices reached 21.6 million, reflecting high user engagement [8][10]. - Xiaomi's smart electric vehicle business is positioned for significant growth, with plans to launch new models and expand into international markets, contributing to a projected 23% increase in vehicle shipments by 2027 [17][19].

Core Insights - Xiaomi Group reported a strong Q3 2025 financial performance with revenue of 113.1 billion yuan, a year-on-year increase of 22.3%, and an adjusted net profit of 11.3 billion yuan, up over 80% year-on-year [1][5] - The company has achieved over 100 billion yuan in net profit for three consecutive quarters, indicating a solid transition into a phase of normalized high profitability [5] Revenue and Profit Growth - For the first three quarters of 2025, Xiaomi achieved total revenue of 340.37 billion yuan, a 32.5% increase year-on-year, and an adjusted net profit of 32.817 billion yuan, up 73.5% year-on-year [6] - The growth is attributed to the strong performance of its smartphone, automotive, and smart home appliance sectors, with innovative businesses like electric vehicles and AI contributing 29 billion yuan in revenue [6] Business Performance - In Q3, Xiaomi's smartphone shipments reached 43.3 million units, marking nine consecutive quarters of year-on-year growth, with a global market share of 13.6% [8] - The AIoT platform connected devices surpassed 1 billion, reaching 1.036 billion, with monthly active users at 742 million [8] - Internet services revenue hit a record high of 9.4 billion yuan, growing 10.8% year-on-year [8] Strategic Positioning - Xiaomi's unique business model integrates hardware, software, and services, creating a comprehensive smart living experience that is difficult for competitors to replicate [11] - The company has established a clear ecosystem synergy among its three growth curves: smartphones as the primary user interface, automotive as the second revenue engine, and smart appliances enhancing the overall ecosystem [11][20] Automotive Business - The automotive sector reported revenue of 28.3 billion yuan in Q3, a staggering 197.9% increase year-on-year, with a delivery volume of 108,800 units, marking a 33.8% increase from Q2 [15] - Xiaomi's first electric vehicle achieved profitability within a year and a half of its launch, a unique feat among new automotive entrants in China [15] Smart Home Appliances - Xiaomi's high-end smart appliance segment is gaining traction, with new product launches and the opening of a smart appliance factory in Wuhan, which will support large-scale production [17] - The company is positioned as a key player in driving the upgrade of home appliance products, leading trends in smart and scenario-based consumption [17] Research and Development - Xiaomi's R&D investment reached 23.5 billion yuan in the first three quarters of 2025, with a record high of 9.1 billion yuan in Q3, reflecting a 52.1% year-on-year increase [20][21] - The company is transitioning from an internet company to a hard-tech leader, with significant advancements in AI and self-developed chips [21] Market Outlook - Analysts view Xiaomi's long-term value positively, citing its robust balance sheet, strong ecosystem integration, and competitive advantages in the electric vehicle sector [23][24] - The synergy between smartphones, electric vehicles, and AIoT is expected to unlock substantial growth potential, bringing Xiaomi closer to its goal of reaching a trillion-dollar market valuation [24]