Investment Rating - The report assigns an "Accumulate" rating to Xiaomi Group [1][9]. Core Insights - Xiaomi's FY25Q1 revenue reached 111.3 billion RMB, marking a 47.7% year-on-year increase, with adjusted net profit surpassing 10.7 billion RMB, a 64.5% growth [3][7]. - The company has launched its self-developed 3nm mobile SoC chip, Xuanjie O1, and plans to invest 200 billion RMB in R&D over the next five years [7][9]. - Xiaomi's smartphone revenue in FY25Q1 was 50.6 billion RMB, up 8.9% year-on-year, regaining the top market share in mainland China at 18.8% [7][9]. Financial Summary - Revenue projections for FY2025E-FY2027E are adjusted to 483.5 billion, 602.3 billion, and 715.9 billion RMB respectively, with adjusted net profit forecasts of 42.2 billion, 55.2 billion, and 68.6 billion RMB [3][9]. - The company reported a gross profit of 25.4 billion RMB in FY25Q1, with a gross profit margin of 22.8% [10]. - The adjusted PE ratio for FY2025 is projected at 28.7, reflecting a premium valuation due to Xiaomi's hardware synergy and AI positioning [9][14].

Core Insights - The main focus of the recent Xiaomi product launch was the Xiaomi 15S Pro, which features a significant upgrade in its processor from Qualcomm Snapdragon 8 Gen 2 to Xiaomi's self-developed Xuanjie O1 [1] - The pricing of the Xiaomi 15S Pro starts at 5499, which raises questions similar to those faced by Huawei when it launched its self-developed Kirin processors, as consumers expect domestic chips to be more affordable than foreign alternatives [3] - Xiaomi also introduced the Xiaomi Civi 5 Pro, which is positioned as a more affordable option starting at 2999, making it accessible to a broader audience [5] Product Details - The Xiaomi Civi 5 Pro maintains the same price as its predecessor while offering enhanced features, including a compact design and a 6.55-inch 1.5K display [5] - It is powered by the Snapdragon 8s Gen 4 processor and features a 5000MP front camera, a triple rear camera setup with 5000MP main, 5000MP telephoto, and 1200MP ultra-wide lenses, all utilizing Leica's imaging algorithms [7] - The device boasts a lightweight design with a thickness of 7.45mm and a battery capacity of 6000mAh, supporting 67W fast charging, making it a strong contender in the market for performance and portability [7]