Group 1 - The Huawei Mate 80 series has shown strong market performance, with sales surpassing one million units shortly after its launch, achieving approximately 1.2349 million units by the end of the 51st week of 2025, with an average daily sales exceeding 50,000 units [2][3] - In terms of product structure, the standard version has the highest shipment proportion, followed by the Pro Max, Pro, and the Extraordinary Master version. Notably, the entry-level model priced at 4,699 yuan has the lowest sales among the standard versions, which is unexpected [3] - The 5,499 yuan version with 16GB RAM and 512GB storage has become the most popular model in the series, with sales nearly five times that of the entry-level version [3] - The strong sales of the Mate 80 series have significantly boosted Huawei's overall smartphone market performance, leading the brand to hold the top market share in China for two consecutive weeks, further solidifying its competitive advantage in the high-end smartphone sector [2][3]

Core Viewpoint - Morgan Stanley believes that the Xiaomi 17 series will see strong sales due to its quality and high cost-performance ratio, which will help accelerate Xiaomi's market share growth in the high-end smartphone sector [1] Group 1: Smartphone Business - Analysts, including Andy Meng, indicate that Xiaomi's strong sales in the Xiaomi 17 series will enhance its position in the high-end smartphone market [1] - The report emphasizes the importance of quality and cost-effectiveness in driving sales for the Xiaomi 17 series [1] Group 2: Electric Vehicle Business - Xiaomi has initiated a dedicated customization service in its electric vehicle business, which is expected to become a core competitive advantage [1] - Although the initial monthly production is only 40 vehicles, there is confidence that this service will scale as the utilization rate of the new electric vehicle factory increases [1] - The customization model is anticipated to be extended to most vehicle models, aiding Xiaomi in maintaining a steady flow of new orders [1] Group 3: Investment Rating - The report maintains an overweight rating for Xiaomi, reflecting confidence in its growth prospects in both the smartphone and electric vehicle sectors [1]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [5][11]. Core Insights - The company achieved a record high revenue of 6.472 billion yuan in Q1 2025, marking a year-on-year growth of 14.68% and a quarter-on-quarter decline of 5.13%. The net profit attributable to shareholders reached 866 million yuan, up 55.25% year-on-year but down 8.65% quarter-on-quarter [1]. - The company is benefiting from an optimized product structure and enhanced supply chain efficiency, leading to improved profitability. The gross margin for Q1 2025 was 31.03%, an increase of 3.14 percentage points year-on-year and 2.05 percentage points quarter-on-quarter [1]. - The company is seeing significant growth in its high-end smartphone product share and accelerated penetration in the automotive electronics sector, with revenue from the smartphone market reaching approximately 9.802 billion yuan, accounting for 51% of the image sensor business [2]. - Continuous investment in R&D is evident, with 3.245 billion yuan allocated in 2024, representing 15% of semiconductor design revenue, which supports product upgrades and new product development [3]. Financial Forecasts - The company is projected to achieve net profits of 4.39 billion yuan, 5.6 billion yuan, and 7.034 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 37, 29, and 23 [4][8]. - Revenue is expected to grow from 25.731 billion yuan in 2024 to 40.697 billion yuan by 2027, with annual growth rates of 22.4%, 16.6%, 16.8%, and 16.1% for the respective years [4][9].