Core Viewpoint - The company is expected to see significant revenue growth in Q2 2025, driven by its automotive and IoT businesses, despite challenges in the smartphone segment due to rising storage prices [1][3]. Automotive Business - The company anticipates approximately 81,000 vehicle shipments in Q2 2025, generating revenue of 20.4 billion RMB, a 10% increase quarter-on-quarter [2]. - The gross margin for the automotive segment is expected to improve by 0.5 percentage points to 23.7% as production ramps up [2]. - The company projects total vehicle sales of 436,000 units for the full year 2025, benefiting from economies of scale [2]. - The recent government initiatives to promote high-quality development in the electric vehicle sector are expected to enhance long-term profitability for industry participants [2]. Smartphone, IoT, and Internet Business - The company's smartphone shipments in China are projected to reach approximately 10.4 million units in Q2 2025, reflecting a year-on-year growth of 3.4% and an increase in market share from 14.1% to 15.1% [3]. - Smartphone revenue is expected to remain flat year-on-year, with gross margin potentially declining by 0.9 percentage points to 11.5% due to rising storage costs [3]. - The IoT business is forecasted to grow by 37% year-on-year in Q2 2025, with gross margin expected to remain above 22% [3]. - Internet business revenue is anticipated to grow by 15% year-on-year, maintaining a strong gross margin of around 75% [3]. Profit Forecast and Valuation - The company has revised its revenue forecasts for 2025-2027 downwards by 0.9%, 1.6%, and 1.2% respectively, and net profit forecasts down by 1.3%, 1.7%, and 1.5% to 40.45 billion, 50.47 billion, and 62.29 billion RMB [3]. - The target price for the company is set at 67.8 HKD, down from 71.2 HKD, based on a sum-of-the-parts valuation method, corresponding to a 40 times PE ratio for 2025 [3].

Core Viewpoint - Xiaomi is expected to report strong 2Q25 results with revenue and adjusted net profit growth of 32% and 66% YoY, respectively, driven by solid smartphone performance, strong EV demand, robust IoT growth, and stable gross profit margins across all segments [1] Group 1: Smartphone Performance - Xiaomi's global smartphone shipment for 2Q25 is reported at 42.4 million units, remaining flat YoY, while its market share stands at 15%, ranking No.3 globally [2] - In China, Xiaomi's smartphone shipment grew by 3% YoY, outperforming the overall market which declined by 4% YoY [2] - The average selling price (ASP) is expected to increase by 6% YoY in 2Q25 due to a higher mix of mid-to-low-end smartphone shipments [2] - Gross profit margin (GPM) for smartphones is estimated at 11.5%, impacted by BOM cost pressures and competition from Apple and Samsung [2] - Forecasted shipments for FY25-27E are 178 million, 190 million, and 200 million units, reflecting growth rates of 5%, 7%, and 5% YoY, respectively [2] Group 2: Smart EV Segment - The EV segment is expected to see strong demand with a backlog of orders and capacity ramp-up, estimating 81,000 shipments in 2Q25 with an ASP of RMB250,000, reflecting a 9% YoY increase [3] - For FY25E, the forecast for EV shipments is 396,000 units, exceeding the guidance of 350,000 units, supported by strong YU7 orders and rapid capacity growth [3] Group 3: IoT and Internet Services - IoT and Internet revenue is projected to grow by 36% and 10% YoY, reaching RMB36.4 billion and RMB9.1 billion in 2Q25E, driven by favorable China subsidies and seasonal demand [3] - The GPM for IoT and Internet is expected to slightly decline QoQ to 23% and 75% in 2Q25E, respectively, due to seasonality and product mix shifts [3]

Core Viewpoint - Xiaomi Group's stock price fell over 5% to HKD 51.2, marking a new low since June 13, 2023, ahead of its Q2 2025 earnings announcement on August 19, 2023 [1] Group 1: Earnings Forecast - Daiwa forecasts Xiaomi's Q2 2025 smartphone shipments to be slightly below previous estimates, primarily due to a 25% year-on-year decline in the Indian market [1] - Despite achieving a historical high global market share of 15% in Q2 2025, this was at the cost of declining gross margins [1] - Total revenue for Q2 2025 is projected at RMB 112.6 billion, slightly below market expectations, while adjusted net profit is expected to be RMB 10.2 billion, in line with market expectations [1] Group 2: Adjustments and Ratings - Daiwa has revised down its IoT revenue forecast for the second half of 2025, reflecting changes in national subsidy policies [1] - Due to the downward revision of smartphone gross margin forecasts, Daiwa has lowered Xiaomi's earnings per share estimates for 2025-2027 by 2%-7% [1] - The target price has been adjusted from HKD 78 to HKD 72, based on an average P/E ratio of 36 times for 2025-2026, down from 38 times, while maintaining a "Buy" rating [1] Group 3: Risks - Key risks include macroeconomic headwinds and slower-than-expected ramp-up in electric vehicle production capacity [1]

Core Insights - BeWhere has released a new case study featuring California Freight, a logistics company specializing in dairy and liquid food transport, showcasing the effectiveness of its low-power IoT tracking solutions [1][2] Company Overview - BeWhere specializes in low-power 5G IoT wide-area tracking technology, providing remote monitoring solutions that address cost, power, and environmental challenges [8] - The company has experienced rapid growth over six years, collaborating with Fortune 500 companies and deploying hundreds of thousands of trackers across various sectors, including transportation, construction, logistics, utilities, health, and government [8] Case Study Highlights - California Freight has integrated BeWhere's solar-powered BeSol and BeSol+ asset trackers across its fleet, enabling real-time monitoring of asset location, movement, and condition [3] - The tracking devices are powered by AT&T's LTE-M network, which supports compliance, reduces manual intervention, and enhances operational responsiveness [3] - The case study emphasizes three key areas where California Freight realized immediate benefits: incident resolution, operational efficiency, and real-time tracking [6] Benefits of BeWhere's Solutions - The intelligent tracking devices meet the needs of California Freight by providing reliability, ease of deployment, and cross-network compatibility [6] - The solutions support regulatory compliance through accurate, cloud-based time/location logs and enhance operational efficiency via remote asset visibility and mileage tracking [11] - BeWhere's platform has been expanded by California Freight to drive ongoing growth and modernization, including a recent 3-year leasing agreement to connect additional trailers [7]

Group 1 - The report indicates that the influx of funds into Hong Kong since May has not significantly boosted the stock market, as these funds have primarily flowed into deposits, bond trading, and other areas rather than equities, leading to a negative sentiment shift [1][2] - Investors who previously sold stocks are now considering re-entering the market, believing that a significant downturn in Hong Kong stocks is unlikely, which could create new incremental capital [2][3] - The report suggests that returning investors are likely to favor undervalued stocks rather than high-flying thematic stocks, focusing on those with lower price-to-earnings ratios [2] Group 2 - The report lists a selection of recommended stocks, including Tencent Holdings (market cap: 470.47 billion, 2025 EPS: 22.9), Xiaomi Group (market cap: 152.97 billion, 2025 EPS: 1.5), and others across various sectors [3][8] - Tencent Holdings is highlighted for its strong competitive position in gaming and advertising, with expected EPS growth driven by AI integration and a robust ecosystem [11][12] - Xiaomi Group is noted for its innovative automotive segment and strong performance in the smartphone market, with a focus on high-margin products and AI applications [19][20] - Sunny Optical Technology is recognized for its growth in the automotive sector and advancements in optical technology for smartphones, projecting significant revenue increases [27][28] - Anta Sports is expected to benefit from strong brand performance and strategic acquisitions, enhancing its market position [33][34] - Greentown Service is identified as a quality property management company with strong growth potential and high dividend yields [39][40] - Yuehai Investment is focusing on core water supply operations, with expectations for stable cash flow and high dividends following the divestment of non-core assets [44][45] - Jiufang Zhitu Holdings is positioned for growth in the online investment space, leveraging technology to enhance its service offerings [49][50] - Dashih Holdings is expanding its store network significantly, with a focus on delivery services and menu optimization [56][57] - Far East Pharmaceutical is projected to see rapid growth in its nuclear medicine segment, with several innovative products in the pipeline [62][63] - Haitian International is expected to benefit from domestic upgrades and international expansion, with a focus on high-end markets [68][69] Group 3 - Financial data for the recommended stocks shows projected revenues and net profits for 2025, with Tencent Holdings expected to generate 716.55 billion in revenue and 210.26 billion in net profit [75] - Xiaomi Group is projected to achieve 491.83 billion in revenue and 39.60 billion in net profit for 2025 [75] - Sunny Optical Technology is expected to generate 42.68 billion in revenue and 3.32 billion in net profit in 2025 [75] - Anta Sports is projected to achieve 78.17 billion in revenue and 13.23 billion in net profit for 2025 [75] - Greentown Service is expected to generate 19.98 billion in revenue and 898 million in net profit in 2025 [75] - Yuehai Investment is projected to achieve 18.54 billion in revenue and 4.27 billion in net profit for 2025 [75] - Jiufang Zhitu Holdings is expected to generate 3.58 billion in revenue and 1.29 billion in net profit in 2025 [75] - Dashih Holdings is projected to achieve 5.37 billion in revenue and 129 million in net profit for 2025 [75] - Far East Pharmaceutical is expected to generate 12.20 billion in revenue and 2.08 billion in net profit in 2025 [75] - Haitian International is projected to achieve 18.25 billion in revenue and 3.52 billion in net profit for 2025 [75]

Core Insights - Lantronix Inc. has been awarded the 2025 Industrial IoT Company of the Year by CompassIntel, recognizing its leadership and innovation in the IoT sector [1][2][3] Company Overview - Lantronix is a global leader in compute and connectivity IoT solutions, focusing on high-growth markets such as Smart Cities, Enterprise, and Transportation [5] - The company provides customizable solutions that enable AI Edge Intelligence, including Intelligent Substations infrastructure, Infotainment systems, and Video Surveillance [5] Industry Recognition - The CompassIntel Awards celebrate companies that demonstrate innovation, leadership, and excellence in the mobile, IoT, business tech, and emergency technology industries [2] - Winners are selected by a panel of industry experts, including press, editors, and analysts [2] Leadership Statements - The CEO of Lantronix expressed honor in receiving the award and emphasized the company's commitment to innovation and customer success through advanced IoT technologies [3] - The partnership with Qualcomm and other industry leaders is highlighted as a key factor in delivering groundbreaking IoT solutions [3]

Investment Rating - The report assigns an "Accumulate" rating to Xiaomi Group [1][9]. Core Insights - Xiaomi's FY25Q1 revenue reached 111.3 billion RMB, marking a 47.7% year-on-year increase, with adjusted net profit surpassing 10.7 billion RMB, a 64.5% growth [3][7]. - The company has launched its self-developed 3nm mobile SoC chip, Xuanjie O1, and plans to invest 200 billion RMB in R&D over the next five years [7][9]. - Xiaomi's smartphone revenue in FY25Q1 was 50.6 billion RMB, up 8.9% year-on-year, regaining the top market share in mainland China at 18.8% [7][9]. Financial Summary - Revenue projections for FY2025E-FY2027E are adjusted to 483.5 billion, 602.3 billion, and 715.9 billion RMB respectively, with adjusted net profit forecasts of 42.2 billion, 55.2 billion, and 68.6 billion RMB [3][9]. - The company reported a gross profit of 25.4 billion RMB in FY25Q1, with a gross profit margin of 22.8% [10]. - The adjusted PE ratio for FY2025 is projected at 28.7, reflecting a premium valuation due to Xiaomi's hardware synergy and AI positioning [9][14].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company held its 2025 Investor Day on June 3, where it discussed its high-end strategy and new retail format, emphasizing that its moat lies in the core of the Xiaomi model. The company will focus on "chips, AI, OS" as the three foundational pillars of hard technology, continuing to deepen its engagement in the underlying hard technology sector. Through the integration of software and hardware, it aims to empower the entire ecosystem of people, vehicles, and homes [4][8] Summary by Relevant Sections Smartphone and Consumer Electronics - According to the company's president, Xiaomi is expected to see a net inflow of over 13 million users in the Chinese market in 2024, with a market share increase of 5.3 percentage points from 2020 to 2024. In Q1 2025, global smartphone sales reached 41.8 million units, a year-on-year increase of 3.0%, with a global market share of 14.1%, up 0.3 percentage points. In mainland China, sales reached 13.3 million units, a year-on-year increase of 40.0%, reclaiming the top position after 10 years. The average selling price of Xiaomi smartphones in Q1 2025 was 1,210.5 yuan, up 5.7% year-on-year, with a market share of 24.4% in the 4k-5k yuan price range, ranking first [8] IoT Business - In Q1 2025, the company's IoT and lifestyle consumer products business achieved revenue of 32.3 billion yuan, a year-on-year increase of 58.7%, with a gross margin of 25.2%, up 5.4 percentage points year-on-year. The revenue from major appliances doubled, indicating initial success of the high-end strategy. In smart home appliances, revenue grew by 113.9% year-on-year, with air conditioning shipments exceeding 1.1 million units (up over 65%), refrigerators over 880,000 units (up over 65%), and washing machines over 740,000 units (up over 100%) [8] Automotive Business - The automotive business is gradually narrowing its losses, with a Q1 2025 loss of 500 million yuan, a significant reduction of 50.2% quarter-on-quarter. The company is advancing new model launches, with the YU7 model expected to launch in July. The YU7 is designed to balance aesthetics and performance while offering exceptional value, potentially becoming a bestseller. With the YU7's launch, the automotive business is entering a strong model cycle, and profitability is expected to improve further, with a forecast of achieving profitability in Q3 to Q4 of this year [8] Overall Ecosystem Development - The comprehensive development of Xiaomi's "people, vehicles, and homes" ecosystem, along with steady growth in smartphones and rapid growth in IoT appliances and automotive business, leads to projected net profits of 42.39 billion yuan, 55.75 billion yuan, and 70.08 billion yuan for 2025-2027, respectively, maintaining a "Buy" rating [8]

Core Insights - WISeKey's WISe.ART 3.0 is one of the world's first and largest Web3 marketplaces for digital art, NFTs, and crypto collectibles, showcasing Faben's MLove at NFC Lisbon [2] - Since its launch in 2021, WISe.ART has led numerous pioneering NFT projects, emphasizing trusted digital identity, robust cybersecurity, and environmental consciousness [3] - WISe.ART ensures secure digital identity and compliance with international standards, making it a trusted platform for institutional and philanthropic NFT use cases [4] Company Overview - WISeKey International Holding Ltd is a global leader in cybersecurity, digital identity, and IoT solutions, operating through several subsidiaries focused on specific technology areas [10][11] - The WISe.ART platform redefines the digital art experience by providing a secure, traceable, and intelligent environment for trading and authenticating digital assets, empowering creators worldwide [6] Project Highlights - Faben's holograms are part of a significant project that includes NFTs, NFCs, physical pieces, and an AI community-building app aimed at promoting global beauty and peace [5] - The holograms will be identifiable with WISeKEY chips and linked to their respective NFTs on the WISe.ART blockchain, with a complete NFT collection set to drop in July during ARTMONACO week [8] Event Information - NFC Summit is an annual event where the creative economy intersects with Web3, featuring live performances, conferences, and exhibitions, gathering major web3 players, investors, and media [9]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group-W (01810.HK) [1] Core Insights - The report highlights strong performance across various business segments, particularly in IoT and automotive sectors, which are expected to continue enhancing earnings [1][9] - The company achieved record high revenue and net profit in Q1 2025, with revenue reaching 111.29 billion yuan, a year-on-year increase of 47.4%, and adjusted net profit of 10.68 billion yuan, up 64.5% year-on-year [9] - The automotive segment shows promising growth with revenue of 18.58 billion yuan in Q1 2025, a quarter-on-quarter increase of 11.5%, and a narrowing loss of 500 million yuan [9] - Xiaomi's smartphone market share has returned to first place in China, with a year-on-year increase of 4.7% to 18.8% [9] - The IoT segment reported revenue of 32.34 billion yuan, a year-on-year increase of 58.7%, driven by strong sales in home appliances and tablets [9] Financial Projections - The report provides financial forecasts indicating total revenue growth from 365.91 billion yuan in 2024 to 726.72 billion yuan in 2027, with a compound annual growth rate (CAGR) of 15.64% [1][10] - Net profit is projected to increase from 23.66 billion yuan in 2024 to 65.94 billion yuan in 2027, reflecting a significant growth trajectory [1][10] - The report anticipates a steady improvement in earnings per share (EPS), rising from 0.91 yuan in 2024 to 2.54 yuan in 2027 [1][10]