Core Viewpoint - Wuhu Yabo Xuan Electronic Technology Co., Ltd. (Yabo Xuan) reported strong financial performance for the first three quarters, driven by growth in automotive electronics and smart consumer electronics sectors [2] Group 1: Financial Performance - The company achieved operating revenue of 419 million yuan, representing a year-on-year increase of 55.90% [2] - Net profit attributable to shareholders was 48.72 million yuan, up 36.59% year-on-year [2] - The net profit after deducting non-recurring gains and losses was 48.02 million yuan, reflecting a 61.00% year-on-year growth [2] Group 2: Business Segments - The automotive electronics segment saw significant growth, with revenue reaching 91.58 million yuan in the first half of the year, a year-on-year increase of 194.96% [2] - The company is benefiting from the increasing penetration of the new energy vehicle market, leading to a sustained increase in automotive electronics orders [2] - The smart glasses sector is expected to contribute to business growth, with the company collaborating with Vision Technology Co., Ltd. to enter the AR glasses industry [2] Group 3: Industry Insights - The PCBA (Printed Circuit Board Assembly) market is experiencing rapid growth, particularly in consumer electronics and automotive electronics, with a rising demand for high-performance, miniaturized circuit boards [3] - Yabo Xuan's advantages in scale, efficiency, and cost control in PCBA manufacturing enable it to quickly meet market demands [3] - The company is expanding its production capacity by acquiring land for new facilities, which is expected to quickly align with customer orders and meet market demand [3]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with an updated target price of HK$52.00, reflecting a P/E ratio of 38.5 times the adjusted EPS for 2025 [2][6][21]. Core Insights - The report anticipates strong performance in Q4 2024, with revenue expected to exceed RMB 100 billion for the first time, reaching RMB 105 billion, a year-on-year increase of 43% [4][14]. - Key growth drivers for 2025 include national consumption subsidy policies, expansion in electric vehicle (EV) production capacity, and the monetization of CEO Lei Jun's personal brand [5][19]. - The report emphasizes that Xiaomi's strong financial performance from 2024 to 2025 marks the beginning of a structural growth phase rather than a cyclical recovery peak [5][21]. Financial Summary - Revenue projections for Xiaomi are as follows: - 2024E: RMB 361.95 billion - 2025E: RMB 444.69 billion - 2026E: RMB 487.60 billion - Adjusted net profit estimates are: - 2024E: RMB 25.96 billion - 2025E: RMB 31.62 billion - 2026E: RMB 38.52 billion [7][18][24]. Segment Performance - Smartphone revenue is projected to reach RMB 206.99 billion in 2025, with a year-on-year growth of 9% [16]. - IoT and lifestyle products are expected to generate RMB 121.74 billion in 2025, reflecting a 18% increase [16]. - The electric vehicle segment is forecasted to grow significantly, with revenues projected at RMB 76.19 billion in 2025, marking a 136% increase [16]. Adjustments and Forecasts - The report revises revenue forecasts upward by 2%-5% for 2024-2026, driven by higher expectations for IoT and EV segments [5][18]. - Adjusted net profit forecasts have been increased by 4%-21% for the same period, with a projected CAGR of 22% from 2024 to 2026 [5][18]. Valuation - The updated target price reflects a 53% increase from the previous target of HK$34.00, based on a higher adjusted net profit estimate of RMB 316.24 billion for 2025 [6][19]. - Xiaomi's current trading price shows a slight discount compared to Apple, despite faster revenue and profit growth [6][19].