Investment Rating - The report maintains an "Outperform" rating for Xiaomi Corp with a target price of HK$48.80, while the current price is HK$36.32 [2]. Core Insights - Xiaomi launched the MiMo-V2 series, enhancing its IoT ecosystem by integrating text, vision, and speech capabilities, establishing a core AI hub for its "Human-Car-Home" ecosystem [3][12]. - The automotive segment is expected to show strong growth, with the new-generation SU7 featuring advanced driving systems and AI integration [4][13]. - The company plans to invest at least RMB 60 billion in AI over the next three years, with significant R&D expenditures anticipated in 2026 [4][14]. - Revenue forecasts for 2025-2027 are adjusted to RMB 457.9 billion, RMB 494.1 billion, and RMB 571.8 billion, reflecting year-on-year growth of 25%, 8%, and 16% respectively [15][16]. - The adjusted net profit for the same period is projected at RMB 38.18 billion, RMB 39.84 billion, and RMB 48.56 billion, indicating growth rates of 33%, 4%, and 22% [16]. Financial Summary - Revenue and profit projections for Xiaomi are as follows: - FY2023: Revenue of RMB 271.4 billion, Net profit of RMB 17.5 billion - FY2024: Revenue of RMB 365.6 billion, Net profit of RMB 23.6 billion - FY2025E: Revenue of RMB 457.9 billion, Net profit of RMB 40.1 billion - FY2026E: Revenue of RMB 494.1 billion, Net profit of RMB 40.1 billion [9][15]. - The gross profit margin is expected to be around 21.2% in FY2023, improving to 22.3% by FY2025E [9]. Valuation Methodology - The report employs a sum-of-the-parts (SOTP) valuation method, assigning: - Hardware business a PE of 21x - Internet business a PE of 24x - Automotive business a PE of 73.5x or a PS of 2.4x [16].

Investment Rating - The report maintains an "Outperform" rating for Xiaomi Corp with a target price of HK$48.80, while the current price is HK$36.32 [2]. Core Insights - Xiaomi launched the MiMo-V2 series, enhancing its IoT ecosystem by integrating text, vision, and speech capabilities, establishing a core AI hub for its "Human-Car-Home" ecosystem [3][12]. - The automotive segment is expected to show strong growth, with the new-generation SU7 featuring advanced driving systems and AI integration [4][13]. - The company plans to invest at least RMB 60 billion in AI over the next three years, with significant R&D expenditures planned for 2026 [4][14]. Financial Projections - Revenue forecasts for 2025-2027 are adjusted to RMB 457.9 billion, RMB 494.1 billion, and RMB 571.8 billion, reflecting year-on-year growth of 25%, 8%, and 16% respectively [5][15]. - Adjusted net profit projections for the same period are RMB 38.18 billion, RMB 39.84 billion, and RMB 48.56 billion, indicating growth rates of 33%, 4%, and 22% [5][16]. - The SOTP valuation assigns a PE of 21x for hardware, 24x for internet services, and 73.5x for automotive, leading to a target price of HK$48.80 [5][16]. Market Performance - The company's market capitalization is HK$785.77 billion (US$100.27 billion), with an average daily trading volume of US$717.46 million [2]. - Over the past year, the stock has seen a decline of 37% [2].

Group 1 - The company, Fibocom, stated on September 5 that it maintains strategic partnerships with numerous well-known internet enterprises to jointly promote the development of the IoT ecosystem [1] - Specific business cooperation information can be referenced on the company's official website and official WeChat account [1]