Investment Rating - The investment rating for Xiaomi Group is "Buy" [7]. Core Views - The report highlights that Xiaomi's automotive deliveries are stable, its major appliances maintain competitive advantages, and the upcoming smartphone releases may serve as significant catalysts for growth [3][4]. Financial Summary - Total revenue is projected to reach RMB 270,971 million in 2023, increasing to RMB 758,393 million by 2027, reflecting a compound annual growth rate (CAGR) of 18.2% [5]. - Gross profit is expected to grow from RMB 57,477 million in 2023 to RMB 188,736 million in 2027, with gross margin improving from 21.2% to 24.9% over the same period [5]. - Adjusted net profit is forecasted to rise significantly from RMB 19,273 million in 2023 to RMB 83,643 million in 2027, indicating a strong growth trajectory [5]. Automotive Segment - Xiaomi's automotive deliveries have consistently exceeded 30,000 units in July and August, positioning the company to potentially surpass its annual target of 350,000 deliveries for 2025 [11]. - The second-phase factory is expected to ramp up production faster than the first phase due to accumulated supply chain and production experience [11]. Home Appliances Segment - The air conditioning segment has seen a significant increase, with shipments exceeding 5.4 million units in Q2 2025, representing a year-on-year growth of 60% [11]. - The new Wuhan factory is anticipated to enhance Xiaomi's competitive edge in the major appliances market [11]. Smartphone Segment - The upcoming launch of the Xiaomi 17 Pro and ProMax is expected to be a key catalyst, with pre-orders reportedly doubling compared to the previous generation [11]. - The report suggests that the new smartphone releases could lead to improved revenue and gross margin performance in Q4 [11].

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]