Core Viewpoint - The company reported strong Q1 2025 performance with significant revenue and profit growth, driven by automotive and smart home appliance sectors [1][4] Group 1: Automotive Business - In Q1 2025, the company achieved automotive revenue of 181 billion yuan, with a single vehicle ASP of 239,000 yuan, reflecting a 0.5 thousand yuan increase [1] - The SU7 series delivered 75,869 units, maintaining over 20,000 monthly deliveries for six consecutive months [1] - The automotive business's operating loss narrowed to 5 billion yuan, with a gross margin of 23.2%, up 2.7 percentage points from the previous quarter [1] Group 2: New Model Launch - The YU7 model is set to launch in July 2025, featuring significant upgrades in configuration compared to the SU7, including a 96.3 kWh battery and a CLTC range of 835 km [2] - The YU7 will offer three versions, all equipped with advanced technologies such as the Nvidia Thor platform and laser radar [2] - Pricing strategy for YU7 is expected to be higher than SU7 due to tight production capacity [2] Group 3: Smartphone and IoT Business - In Q1 2025, the company shipped 41.8 million smartphones, generating revenue of 506 billion yuan, with a smartphone ASP of 1,211 yuan, up 5.8% year-on-year [3] - The company's global smartphone market share reached 14.1%, ranking third, while its market share in mainland China rose to 18.8%, regaining the top position [3] - The smart home appliance segment saw a revenue increase of 113.8%, with significant growth in air conditioners, refrigerators, and washing machines [3] Group 4: Profit Forecast and Investment Recommendation - The company is experiencing rapid growth in both automotive and smart home appliance sectors, with narrowing losses in automotive business [4] - The forecast for net profit from 2025 to 2027 has been adjusted to 41.8 billion, 53.4 billion, and 66.6 billion yuan, respectively, reflecting an increase from previous estimates [4] - The company maintains a "recommended" rating based on strong Q1 performance and stable gross margins across multiple business lines [4]