Xiaomi (1810 HK) Equity Research Summary Industry Overview - **Industry**: Electronic Equipment & Instruments - **Company**: Xiaomi Corporation Key Financial Highlights - **3Q25 Non-IFRS Net Profit**: RMB 11.3 billion, up 81% year-on-year, exceeding consensus by 13% due to higher than expected EV average selling price (ASP) which increased by 9% year-on-year and 2.5% quarter-on-quarter [3][29] - **EV Business**: Achieved its first quarterly operating profit of RMB 0.7 billion in 3Q25, with vehicle deliveries increasing by 34% quarter-on-quarter [3][11] - **Total Revenue**: RMB 113.1 billion in 3Q25, a 22.3% increase year-on-year [29] Segment Performance Smartphone Segment - **Revenue**: RMB 45.97 billion, a decrease of 3.1% year-on-year [29] - **ASP Decline**: From RMB 1,073 in 2Q25 to RMB 1,063 in 3Q25, with gross margin dropping from 11.5% to 11.1% [3][29] - **Profitability Pressure**: Expected due to rising memory costs; prioritizing ASP improvement over shipment growth [4][11] IoT and Lifestyle Products - **Revenue Growth**: Slowed to 5.7% year-on-year, impacted by reduced shipments of smart large home appliances due to subsidy cuts and increased competition [3][4] - **Gross Margin Recovery**: Increased by 1.4 percentage points sequentially [3] EV Segment - **Revenue**: RMB 29.01 billion, a significant increase of 199.2% year-on-year [29] - **Delivery Goal**: On track to meet 2025 vehicle delivery target of 350,000 units, with monthly deliveries expected to rise from approximately 30,000 in July to over 40,000 by October 2025 [4][11] Strategic Insights - **Premiumisation Strategy**: Aimed at alleviating cost pressures in the smartphone segment [4][11] - **Product Mix Optimization**: To mitigate the impact of subsidy reductions in the IoT segment [4] Valuation and Estimates - **Target Price**: Decreased to HKD 62.80 from HKD 65.40, implying a 54% upside from the current share price of HKD 40.78 [5][11] - **Net Profit Estimates**: Lowered by 3%, 6%, and 3% for 2025-2027, respectively, due to reduced revenue estimates [5][30] - **Valuation Method**: Sum-of-the-parts (SOTP) approach; applying a 25x target PE for legacy businesses and DCF for the EV business [5][32] Risks and Challenges - **Component Shortages**: Potential revenue caps due to shortages in key semiconductor components [40] - **Competition**: Increased competition in IoT and internet services from established players like Huawei and Lenovo [40] - **FX Volatility**: Risks associated with foreign exchange fluctuations as Xiaomi expands in overseas markets [40] Conclusion - Xiaomi is positioned for growth in its EV segment while facing challenges in its smartphone and IoT businesses. The company’s strategic focus on premiumisation and product mix optimization is crucial for navigating current market pressures. The revised target price reflects a cautious outlook amid anticipated cost pressures and competitive dynamics.

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.