19 November 2025 Xiaomi (1810 HK) Equity Research Report Key takeaways from analyst call. Smartphone: Xiaomi expects pressure on smartphone's profitability in the near term due to the rising memory cost; the company is prioritising ASP improvement over shipment growth, expecting the continuous premiumisation strategy to help alleviate cost pressure. By lowering our gross margin forecast for Xiaomi's 2026e smartphone from 11.8% to 10%, we factor in a 15% memory cost hike. Smart EV: Xiaomi expects to attain i ...

Core Insights - China Resources Beer has appointed Jin Hanquan as the new president and executive director, succeeding Zhao Chunwu, who has held the position since June [1][2] - Yang Hongxia has been named as the new CFO, taking over from Zhao Wei, who stepped down last month [2] Financial Performance - For the first half of 2025, China Resources Beer reported an unaudited consolidated turnover of 23.94 billion yuan ($3.36 billion), reflecting a year-on-year increase of 0.8% [2] - The gross profit margin improved by two percentage points to a record 48.9%, attributed to the premiumisation strategy and cost savings in raw material procurement [3] - Unaudited EBIT reached 7.69 billion yuan, while profit attributable to shareholders was 5.79 billion yuan, marking increases of 20.8% and 23.0% respectively [3] - Beer sales volume was approximately 6.48 million kilolitres, representing a 2.2% year-on-year increase [3] - Revenue from the beer business was 23.16 billion yuan for the half, an increase of 2.6% year on year, with beer EBIT rising by 14% to 7.28 billion yuan [4]

Core Insights - Kinepolis experienced a strong second quarter in 2025, driven by a robust lineup of international blockbusters and an effective premiumisation strategy [1][5] Group 1: Financial Performance - Visitor numbers increased by 17.3% in the second quarter compared to the same period last year, leading to a 2.2% increase in visitors and a 6.2% increase in revenue for the first half of the year [2] - Revenue per visitor rose due to higher demand for premium experiences, with adjusted EBITDAL increasing by 22.6% to €46.4 million, resulting in a net profit of €7.0 million [3] - The company secured a new €160.0 million expandable revolving credit facility in June, enhancing its financial solidity and supporting future growth [3][5] Group 2: Strategic Developments - The company is expanding its premium offerings, including the rollout of 9 new IMAX screens, with 2 already opened, and further expansion of ScreenX and Laser ULTRA in Belgium, the US, and Canada [8] - Self-service ordering kiosks for drinks and snacks are being introduced in Canadian cinemas, and an RP1 Entertainment & Gaming Lounge has opened in MJR Southgate, US [8] - The appointment of Hans Van Acker as Chief Strategic Businesses & Development indicates a focus on strategic growth and innovation [8]

Summary of Xiaomi Conference Call Company Overview - **Company**: Xiaomi Corporation (1810 HK) - **Industry**: Technology Hardware & Equipment Key Points and Arguments 1. **Product Launch and Demand**: Xiaomi's YU7 SUV has seen exceptional demand, with pre-orders reaching 289,000 units within the first hour of launch, significantly outperforming the SU7's 88,000 units in 24 hours [11] 2. **Pricing Strategy**: The YU7 is priced competitively, with the standard model starting at Rmb253,500, which is Rmb10,000-30,000 below comparable Tesla models. Additionally, Xiaomi is offering free options valued up to Rmb66,000 [11] 3. **Market Positioning**: The battery-electric vehicle (BEV) SUV segment in China is viewed as an accessible market for the YU7, given the significant volume gap between Tesla's Model Y and its competitors [11] 4. **Product Features**: The YU7 boasts a range of 835 km for the standard model, surpassing the Tesla Model Y's 593 km. It also features a quick charge capability of 620 km in 15 minutes compared to Tesla's 275 km [11] 5. **Comfort and Technology Enhancements**: The YU7 includes upgraded comfort features such as zero-gravity front seats, an intelligent suspension system, and advanced smart interactions with the XiaoAi assistant [11] 6. **Financial Outlook**: Xiaomi maintains an Outperform rating with a 12-month target price of HK$69.32, reflecting a potential total shareholder return (TSR) of 21.8% [6][5] 7. **Revenue Projections**: Revenue is projected to grow from Rmb365.9 billion in 2024 to Rmb742.8 billion by 2027, with a compound annual growth rate (CAGR) of 35% [7] 8. **Profitability Metrics**: Adjusted profit is expected to increase from Rmb27.2 billion in 2024 to Rmb77.8 billion in 2027, with an adjusted EPS growth of 40.3% in 2025 [7] 9. **Market Capitalization**: As of June 26, 2025, Xiaomi's market capitalization is approximately USD 188.056 billion [6] Additional Important Information - **Competitive Landscape**: Xiaomi's investments in core EV technologies are highlighted as key drivers for its success in the automotive sector [11] - **Production and Delivery Timeline**: Initial deliveries of the YU7 are expected to start in August, with a potential wait time of 20 to 30 weeks due to production ramp-up [11] - **Stock Volatility**: The stock is categorized with a medium volatility index, indicating a moderate risk profile for investors [6] This summary encapsulates the critical insights from the Xiaomi conference call, focusing on product performance, market strategy, financial outlook, and competitive positioning.