Group 1 - The market experienced fluctuations with the ChiNext index leading the decline, while sectors such as pork, innovative drugs, banks, and CROs saw gains, and sectors like gold, glyphosate, controllable nuclear fusion, humanoid robots, environmental equipment, and consumer electronics faced losses [1] - CITIC Securities highlighted that low-valued embodied intelligent application targets and dividend assets continue to attract market interest, suggesting a focus on "AI + robotics" investment opportunities beyond humanoid robots [2] - CICC emphasized that multi-modal reasoning is crucial for enhancing intelligent driving capabilities, with significant advancements expected in the algorithms of leading smart driving companies [2] Group 2 - Huatai Securities pointed out that core assets like A50 and major financial sectors are likely to shift from resilience revaluation to growth revaluation, showing strong fundamentals during the real estate investment cycle adjustment [3] - A50 non-financial ROE is expected to stabilize and recover ahead of the overall non-financial sector, driven by cost improvements and shareholder returns [3] - The current valuation of these companies reflects a higher implied cost of equity than the market average, indicating potential for a significant reduction in risk premium if investors reassess the overlooked growth resilience [3]

Investment Rating - The report gives a positive outlook on Xiaomi Group (1810.HK), indicating a target price of HKD 65-75, suggesting a potential upside of 30%-45% from the current stock price [29]. Core Insights - Xiaomi Group's Q1 2025 performance exceeded market expectations, with total revenue reaching CNY 111.3 billion, a year-on-year increase of 47.4%, and adjusted net profit surpassing CNY 10.7 billion, up 64.5% year-on-year [2][27]. - The smartphone business showed significant growth, with revenue of CNY 50.6 billion, a year-on-year increase of 8.9%, and a global market share that remains in the top three [5][27]. - The electric vehicle segment also demonstrated strong performance, with revenue of CNY 18.6 billion, a year-on-year increase of 10.7%, and a gross margin of 23.2% [14][15]. - The IoT and lifestyle products segment achieved record revenue of CNY 32.3 billion, growing over 55% year-on-year, driven by significant sales in smart home appliances [20][23]. Summary by Sections Smartphone Business - Xiaomi's smartphone revenue reached CNY 50.6 billion in Q1 2025, with a global shipment of 41.8 million units, marking a 3% increase year-on-year [5]. - The average selling price (ASP) of smartphones reached CNY 1,211, a historical high, with high-end models (above CNY 3,000) accounting for 25% of shipments [9]. - The company aims to increase the proportion of mid-to-high-end models and plans to invest CNY 30 billion in R&D in 2025 [9][29]. Electric Vehicle Business - The electric vehicle segment's revenue was CNY 18.6 billion, with a gross margin of 23.2%, significantly higher than competitors [14][15]. - The SU7 series delivered 75,869 units, maintaining a strong market position in the CNY 200,000+ segment [14]. - The company plans to increase its annual delivery target from 300,000 to 350,000 units for 2025 [19]. IoT and Lifestyle Products - The IoT and lifestyle products segment generated CNY 32.3 billion in revenue, with a year-on-year growth of over 55% [20]. - The number of connected IoT devices reached 943.7 million, a 20.1% increase year-on-year [21]. - Xiaomi plans to enhance its product matrix and expand its presence in overseas markets, targeting a 45% share of IoT revenue from international markets by 2025 [21][23]. Internet Services - The internet services segment achieved revenue of CNY 9.1 billion, a year-on-year increase of 12.8%, with a gross margin of 76.9% [23][24]. - The number of MIUI monthly active users reached 719 million, a 9.2% increase year-on-year, indicating strong user growth [24].

Legal Disputes - Baidu has filed a lawsuit against Xiaomi and Shanghai Yiyi Information Technology Co., Ltd. for unfair competition, with the court hearing scheduled for June 13, 2025, at the Shanghai Qingpu District People's Court [3][5]. Automotive Industry Insights - Huawei's executive Yu Chengdong announced that the company will focus on five key areas in the automotive sector, emphasizing the importance of collaboration among top manufacturers [5]. - The automotive industry is witnessing a significant number of price cuts, with over 200 models having reduced prices last year and more than 60 in the first quarter of this year. Industry leaders are advocating for a shift from price wars to technological advancements and quality improvements [9][12]. - Lantu Motors CEO Lu Fang stated that the company firmly opposes price wars and believes in enhancing manufacturing efficiency through technological innovation rather than cost-cutting measures [12]. Corporate Developments - Lego China has terminated its partnership with a third-party company following negative comments made by a blogger about singer A-Shin, reaffirming its support for A-Shin's fans [7]. - Xiaomi Automotive has expanded its presence with 298 stores across 82 cities as of May, with plans to open 37 more stores in June [9]. Financing Activities - Beijing Shunjing Biopharmaceutical Technology Co., Ltd. has completed a Series A financing round of 300 million yuan, which will be used for clinical trials of its acute myocardial infarction antibody drug SGC001 [11]. - The pre-made food brand Lianjie Workshop has announced a Series B financing round of 300 million yuan to support its expansion and development [11]. - UnixAI, a developer of embodied intelligent robots, has successfully completed an angel+ financing round, with funds aimed at advancing its research and development [11]. Entertainment Industry Performance - The total box office for new films during the Dragon Boat Festival in 2025 has surpassed 200 million yuan, with "Mission: Impossible 8" leading the box office [16].

5月31日，在2025未来汽车先行者大会上，华为常务董事、终端BG董事长余承东表示，鸿蒙智行可能不 会再有第六"界"。他称："因为我们的能力做两三个界都已经很不容易了，做五个界非常非常难。一个 拳头还真的需要五个手指头，握上才有力量。所以也不可能有六个手指头，我们就到此暂时握紧了，一 起努力干，一起打天下。"(第一财经) ...

Core Viewpoint - Xiaomi's recent statements and actions have sparked significant controversy, reflecting broader issues within the Chinese automotive ecosystem, particularly in the context of its electric vehicle (EV) offerings and the challenges faced by the company and its leadership [1][10]. Group 1: Company Performance and Product Success - Xiaomi's SU7 has achieved remarkable sales, with monthly deliveries surpassing 20,000 units and a total of 135,000 units sold in the previous year [4]. - In the first quarter of this year, Xiaomi delivered 76,000 units of the SU7, bringing the cumulative total to 258,000 units, positioning it as the top-selling model in the 200,000 yuan and above EV segment, even outperforming Tesla's Model 3 [4]. - The recently unveiled YU7 has also received positive market feedback, with user interest significantly higher than that for the SU7, indicating strong potential for future sales [5]. Group 2: Financial Performance - Xiaomi Group reported a record-breaking first-quarter financial performance, with revenue reaching 111.29 billion yuan, a 47.4% increase from the same period last year [7]. - The company's profit for the quarter was 10.89 billion yuan, marking a staggering 161% increase year-on-year, highlighting the financial strength despite ongoing controversies [7]. Group 3: Controversies and Challenges - Recent incidents, including a tragic car accident involving the SU7, have led to increased scrutiny and criticism of Xiaomi's smart driving technology, prompting regulatory responses from government agencies [7][8]. - The company faced backlash over issues related to the SU7 Ultra, including horsepower limitations and consumer rights disputes, leading to a significant reputational impact [8]. - Xiaomi's founder, Lei Jun, has entered a period of reduced public engagement, reflecting the pressure from ongoing controversies and the dual nature of media attention as both beneficial and detrimental [8][10].

Core Viewpoint - The launch of the ZunJie S800 luxury smart car marks a significant advancement in the electric vehicle market, featuring innovative technology and high-performance specifications. Group 1: Product Overview - The ZunJie S800 is available in four versions, with prices ranging from 708,000 to 1,018,000 yuan, and a limited initial batch of 599 units will be delivered starting June 26 [1] - The vehicle dimensions are 5480×2000×1542 mm, with a wheelbase of 3370 mm, providing spacious interior space [1] - The car features six color options and boasts an industry-leading drag coefficient of 0.206Cd due to its aerodynamic design [1] Group 2: Intelligent Features - The ZunJie S800 is equipped with Huawei's ADS4 intelligent driving system, featuring four LiDARs and up to 32 sensors for comprehensive perception capabilities [1] - It introduces NearLink technology, enhancing positioning accuracy fivefold compared to traditional Bluetooth keys [1] - The smart electric door system can intelligently sense obstacles and adjust the opening angle up to 77 degrees [1] Group 3: Powertrain and Performance - The vehicle is built on the Turing Longxing platform, utilizing an 800V high-voltage silicon carbide electric drive system [2] - The pure electric version has a 97 kWh battery, supporting 5C super fast charging, with a charging time of only 12 minutes from 10% to 80%, and a CLTC range of 702 km [2] - The range-extended version features a 65 kWh battery and a 50L fuel tank, achieving a maximum combined range of 1333 km [2] Group 4: Audio and Safety Features - The ZunJie S800 features the Huawei Yuezhan extraordinary audio system with 43 speakers and a total power of 2920W, providing an immersive sound experience [2] - The vehicle's safety design includes a robust structure capable of withstanding a maximum side pressure of 156 kN and a torsional rigidity of 53,300 N·m/deg [2] - The body is made of 92% ultra-high-strength steel and aluminum alloy, with 24% being 1500MPa+ hot-formed steel, meeting C-NCAP five-star and C-IASI 3G+ safety standards [2] Group 5: Comfort and Customization - The air quality inside the ZunJie S800 exceeds national standards by 55 times, with a negative ion concentration of 200,000 per cubic centimeter [3] - The interior features high-quality materials, including full-grain semi-aniline leather and wood trim treated with a 480-hour high-gloss process [3] - Mass production deliveries are set to begin in mid-August, with various customizable options available, including starlight ceilings and privacy glass [3]

Core Viewpoint - Xiaomi reported strong Q1 2025 performance with revenue of 111.29 billion, a year-on-year increase of 47.4%, and adjusted profit of 10.68 billion, up 64.5% [1] Group 1: Financial Performance - Q1 2025 revenue reached 1112.93 billion, reflecting a 47.4% year-on-year growth [1] - Adjusted profit for Q1 2025 was 106.75 billion, marking a 64.5% increase compared to the previous year [1] - The mobile and AIoT segments showed improved operational efficiency, with a gross margin of 22.8% and a decrease in operating expense ratio to 11.4% [1] Group 2: Mobile Segment - Xiaomi regained the top market share in mainland China with a 40% increase in smartphone shipments, totaling 13.3 million units [2] - The average selling price (ASP) of smartphones increased by 5.8% to 1210.6 yuan [2] - Internet revenue from mobile devices reached 9.1 billion, up 12.8% year-on-year [2] Group 3: IoT and Smart Devices - IoT business revenue grew by 58.7% to 32.34 billion, with smart home appliances seeing a 113.8% increase [2] - The gross margin for IoT reached a record high of 25.2%, up 4.7 percentage points [2] - The tablet segment saw a 56.1% increase in shipments, entering the global top three [2] Group 4: Automotive Segment - Q1 2025 saw 76,000 vehicle deliveries, with an ASP of 238,000 yuan [3] - Revenue from smart vehicles and AI-related businesses was 18.58 billion, accounting for 16.7% of total revenue [3] - The gross margin for the automotive segment improved to 23.2%, indicating ongoing scale effects [3] Group 5: Strategic Outlook - Xiaomi's competitive advantages include strong technology investments, supply chain management, and marketing capabilities [3] - The company is focusing on long-term strategies in AI, high-end products, and global expansion [3] - Revenue projections for 2025-2027 are estimated at 501.5 billion, 634.4 billion, and 733.2 billion respectively [4]

Core Viewpoint - Xiaomi Group reported record high revenue and adjusted net profit for Q1 2025, driven by strong performance in its smartphone and IOT segments, alongside a strategic focus on cost reduction and efficiency improvement [1][2][3] Financial Performance - Q1 2025 revenue reached 1112.93 billion, a year-over-year increase of 47.4% and a quarter-over-quarter increase of 2.1% [1] - Adjusted net profit for the same period was 106.76 billion, reflecting a year-over-year growth of 64.5% and a quarter-over-quarter growth of 28.4% [1] - Overall gross margin stood at 22.8%, with a year-over-year increase of 0.5 percentage points [1] Business Segments - The smartphone and AIOT segment generated revenue of 927.13 billion, a year-over-year increase of 22.8% [1] - The smart electric vehicle and AI innovation segment achieved revenue of 185.80 billion [1] - IOT business revenue surged to 323.39 billion, marking a year-over-year increase of 58.7% and contributing 29.1% to total revenue [2] - Internet services revenue reached 90.76 billion, with a year-over-year increase of 12.8% [2] Market Position - Xiaomi's smartphone shipments reached 41.8 million units in Q1 2025, a year-over-year increase of 3.0%, maintaining a global market share of 14.1% [2] - In mainland China, Xiaomi regained the top position in smartphone shipments with a market share of 18.8% [2] R&D and Future Outlook - The company plans to invest 2000 billion over the next five years in core technology development [3] - R&D expenditure for Q1 2025 was 67 billion, a year-over-year increase of 30.1% [3] - The launch of self-developed 3nm flagship SoC chip and the open-sourcing of the Xiaomi MiMo model are significant advancements [3] Investment Recommendation - The company is expected to benefit from its brand recognition and supply chain advantages, with projections for revenue and net profit growth from 2025 to 2027 [4] - Forecasted revenues for 2025, 2026, and 2027 are 5062.65 billion, 6052.13 billion, and 7008.88 billion respectively, with corresponding net profits of 357.09 billion, 457.75 billion, and 598.89 billion [4]

Investment Rating - The report maintains a "Buy" rating for the company [8] - The target price is set at HKD 71.20 [8][9] Core Insights - The company's revenue for Q1 2025 reached a historical high of RMB 111.3 billion, with a year-on-year growth of 47% [1] - Adjusted operating profit increased by 114% year-on-year to RMB 9.96 billion [1] - The IoT and automotive business showed strong gross margins, with the IoT revenue growing by 58.7% year-on-year to RMB 32.3 billion [2] - The automotive segment's gross margin improved to 23.2%, benefiting from increased scale [3] - The smartphone average selling price (ASP) reached a record high of RMB 1,211, with a gross margin of 12.4% [4] Summary by Sections Revenue and Profitability - Q1 2025 revenue was RMB 111.3 billion, a 47% increase year-on-year [1] - Adjusted operating profit for Q1 2025 was RMB 9.96 billion, up 114% year-on-year [1] - IoT revenue reached RMB 32.3 billion, with a gross margin of 25.2%, up 5.4 percentage points year-on-year [2] Automotive Business - The company delivered 75,869 units of the SU7 series in Q1 [3] - The automotive segment reported a gross margin of 23.2%, exceeding expectations [3] - The first SUV, YU7, is expected to launch in July 2025, with a focus on consumer feedback post-launch [3] Smartphone Segment - The smartphone ASP reached RMB 1,211, marking a 5.8% year-on-year increase [4] - The smartphone business maintained a gross margin of 12.4% [4] - The launch of self-developed chips is anticipated to enhance the company's high-end market share [4] Valuation and Future Outlook - The target price of HKD 71.20 is based on a sum-of-the-parts (SOTP) valuation method, reflecting the growth potential in IoT and automotive sectors [5][17] - The forecasted net profit for 2025 is adjusted to RMB 40.99 billion, with a projected growth rate of 50.06% [7][15] - The report anticipates a continued increase in IoT revenue, projecting a 24% year-on-year growth for 2025 [2]

Core Viewpoint - The incident involving Deep Blue Automotive's forced pop-up ads in its vehicle system may represent a significant risk for the Chinese smart car industry as it attempts to expand internationally [1] Group 1: Advertising Practices - The appearance of full-screen pop-up ads in vehicles is unprecedented, marking a shift from traditional advertising methods seen in apps and televisions [3] - Deep Blue's use of pop-up ads for a "customer appreciation coupon" raises concerns about future advertising practices, potentially leading to more intrusive ads from various brands [5] - The automotive industry may follow a similar trajectory as smart TVs, where consumers are forced to accept ads or pay significantly more for ad-free experiences [5] Group 2: Safety and Regulatory Concerns - Unlike ads on TVs or smartphones, pop-up ads in vehicles can directly impact driver safety, with reports of drivers nearly having accidents due to obstructed views from ads [7] - European regulations like GDPR impose severe penalties for unauthorized data usage, which could be triggered by such advertising practices [9] - The interconnected nature of vehicle systems means that even a single ad push could alert regulators to potential privacy violations, raising the stakes for manufacturers [11] Group 3: Market Implications - If Chinese automakers are labeled as "privacy-infringing," their international strategies, particularly in smart cockpit development, could be severely undermined [13] - The incident could lead to a broader industry trend where other manufacturers adopt similar advertising strategies, further eroding consumer trust [13][19] - The perception of Chinese vehicles as "unsafe" or "disrespectful of privacy" could hinder their acceptance in Western markets, exacerbating existing skepticism towards Chinese products [16] Group 4: Industry Warnings - The Deep Blue incident serves as a warning for the entire industry, highlighting the potential for advertising to overshadow the primary function of vehicles [19] - The risk of transforming vehicles into advertising platforms could lead to a collective backlash from consumers and regulatory bodies, threatening the future of Chinese smart cars globally [19]