Core Insights - In Q1 2025, the company's revenue reached 111.3 billion yuan, a year-on-year increase of 47%, with adjusted net profit at 10.7 billion yuan, up 64%, marking a historical high [1] - Gross margin reached 22.8%, an increase of 0.5 percentage points year-on-year, also a historical high [1] Smartphone Business - Smartphone revenue in Q1 2025 was 50.6 billion yuan, a 9% year-on-year increase, with a gross margin of 12.4% [1] - Global smartphone shipments increased by 3% to 41.8 million units, capturing a market share of 14.1%, ranking among the top three globally [1] - In mainland China, market share increased by 4.7 percentage points to 18.8%, reclaiming the top position in shipments after ten years [1] - The high-end strategy showed significant results, with high-end models accounting for 25.0% of total sales, up 3.3 percentage points year-on-year [1] - The company launched the new flagship model 15S Pro in May 2025, featuring the self-developed Xuanjie O1 chip [1] IoT and Consumer Products - Revenue from IoT and consumer products reached 32.3 billion yuan in Q1 2025, a 59% year-on-year increase, with a gross margin of 25.2%, up 5.4 percentage points [1] Other Business Segments - Tablet shipments increased by 56%, and revenue from smart home appliances surged by 114% in Q1 2025 [2] - As of March 31, 2025, the company's AIoT platform connected approximately 940 million IoT devices (excluding smartphones, tablets, and laptops), a 20% year-on-year growth [2] - Internet services revenue reached 9.1 billion yuan in Q1 2025, a 13% year-on-year increase, with a gross margin of 76.9%, up 2.7 percentage points [2] - Monthly active users globally reached 720 million, a 9% year-on-year increase, with smart TV users at 73 million, up 8% [2] Automotive Business - Revenue from smart electric vehicles and AI-related businesses was 18.6 billion yuan in Q1 2025, with a gross margin of 23.2% [2] - The SU7 series delivered 75,900 new vehicles in Q1 2025, with cumulative deliveries exceeding 258,000 units [2] - The company introduced its first luxury high-performance SUV, the YU7, in May 2025, set to launch in July [2] Profit Forecast and Investment Recommendation - The company forecasts earnings per share of 1.35, 1.82, and 2.27 yuan for 2025-2027, adjusting previous estimates due to revenue and margin updates [2] - Maintaining a comparable company PE valuation of 38 times for 2026, the target price is set at 75.52 HKD, with a buy rating [2]

Core Viewpoint - The company reported strong financial performance in Q1 2025, with significant year-on-year growth in revenue and net profit, indicating improved profitability and operational efficiency [2]. Group 1: Financial Performance - In Q1 2025, the company achieved revenue of 111.3 billion yuan, a year-on-year increase of 47.4%, marking a record high for a single quarter and surpassing 100 billion yuan for two consecutive quarters [2]. - The Non-IFRS net profit reached 10.7 billion yuan, up 64.5% year-on-year, with a net profit margin of 9.6%, reflecting a notable improvement in profitability [2]. Group 2: Smartphone Business - The company maintained its position among the top three global smartphone manufacturers for 19 consecutive quarters, with Q1 2025 smartphone shipments increasing by 3% year-on-year to 41.8 million units [3]. - In the domestic market, the high-end smartphone shipment proportion rose to 25%, with a market share of 18.8% in mainland China, a year-on-year increase of 4.7 percentage points, marking a return to the top position after ten years [3]. - The average selling price (ASP) of smartphones increased to 1,211 yuan, up 5.8% year-on-year and 0.7% quarter-on-quarter, driven by government subsidies and a higher proportion of high-ASP domestic shipments [3]. - The gross margin for the smartphone business was 12.4%, a slight increase from 12.0% in Q4 2024, primarily due to improvements in the product mix in overseas markets [3]. Group 3: IoT and Internet Business - The IoT business generated revenue of 32.3 billion yuan in Q1 2025, with a remarkable year-on-year growth rate of 59%, and the revenue from smart home appliances surged by 113.8% [4]. - Air conditioner shipments increased by over 65% to more than 1.1 million units, refrigerator shipments also rose by over 65% to more than 880,000 units, and washing machine shipments more than doubled to 740,000 units [4]. - The internet services revenue grew by 13% year-on-year to 9.1 billion yuan, with advertising revenue increasing by 20%, contributing to the overall growth of the internet business [4]. - The number of monthly active users (MAU) for the company's internet services reached 720 million globally and 180 million in mainland China, both hitting historical highs [4]. Group 4: Automotive and AI Business - In Q1 2025, the company rebranded its automotive business to include AI, generating revenue of 18.6 billion yuan, with a gross margin of 23.2% [5]. - The number of vehicle deliveries increased by 8.9% from Q4 2024 to 75,869 units, with the ASP rising from 234,000 yuan in Q4 2024 to 238,000 yuan in Q1 2025 [5]. - The company plans to launch the YU7 series, a luxury high-performance SUV, in July 2025, featuring advanced technology and long-range capabilities [5].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of HK$70.00, indicating a potential upside of 36% from the current price of HK$51.55 [3][12][18]. Core Insights - Xiaomi's 1Q25 performance exceeded expectations, with revenue and adjusted net profit reaching RMB 111.2 billion and RMB 10.6 billion, respectively, surpassing forecasts by 3% and 5% [10]. - The smartphone segment showed a 3% year-on-year sales growth, with high-end models accounting for 25% of shipments in China [10]. - The IoT segment experienced a significant revenue increase of 59% year-on-year, driven by a doubling of revenue from IoT home appliances and a 65% increase in sales volume [10]. - The electric vehicle (EV) and AI business generated RMB 18.6 billion in revenue, with a gross margin of 23.2%, higher than the forecasted 20.8% [10]. - Overall gross margin reached 22.8%, the highest since 2017, attributed to improved operational efficiency and increased investment income [10]. Financial Projections - Revenue for 2025 is projected at RMB 481.3 billion, reflecting a 32% year-on-year growth, with adjusted net profit expected to reach RMB 41.9 billion, an 82% increase [16][20]. - The report anticipates a cautious outlook for smartphone shipment growth, projecting a 3% increase in 2025, with price increases being a key growth driver [11]. - Adjusted EPS for 2025 is forecasted to be RMB 1.64, up from RMB 1.57, representing a 5% increase [4][16]. Valuation - The target P/E ratio for 2026 has been adjusted down to 28.5 times adjusted net profit, reflecting ongoing macroeconomic uncertainties [17]. - The valuation remains at an 8% premium compared to Apple's current P/E ratio, based on stronger growth prospects for Xiaomi [17][18].

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 smartphone ASP reaching a record high [1] - The launch of self-developed chips is seen as a significant step for the brand in expanding its ecosystem [1] Summary by Sections IoT and Consumer Products - In Q1 2025, IoT and consumer products revenue grew by 58.7% year-on-year to RMB 32.3 billion, with a gross margin of 25.2% [2] - The growth is attributed to the rapid expansion of large home appliances, which saw a revenue increase of 113.8% year-on-year [2] - The forecast for the IoT business is a 24% year-on-year revenue growth in 2025, with an adjusted gross margin prediction of 23.8% [2] Automotive Business - The automotive division reported a gross margin of 23.2%, exceeding previous forecasts [3] - The company delivered 75,869 units of the SU7 series in Q1, although the division incurred an operating loss of RMB 500 million [3] - The first SUV, YU7, is expected to launch in July 2025, with consumer feedback being a key focus [3] Smartphone Business - The smartphone ASP for Q1 2025 was RMB 1,211, marking a 5.8% year-on-year increase [4] - The smartphone business maintained a gross margin of 12.4%, reflecting stability despite a weak overall market [4] - The introduction of self-developed chips is anticipated to enhance the company's market share in the high-end smartphone segment [4] Financial Projections - The company’s projected revenue for 2025 is RMB 495.1 billion, with a year-on-year growth of 35.3% [7] - The net profit attributable to the parent company is forecasted to reach RMB 40.99 billion in 2025, representing a 50.1% increase [7] - The report adjusts the non-GAAP net profit estimates for 2025-2027 to RMB 41.0 billion, RMB 51.3 billion, and RMB 63.2 billion respectively [5] Valuation Methodology - The target price of HKD 71.20 is based on a sum-of-the-parts (SOTP) valuation method, assuming a long-term exchange rate of HKD to RMB at 0.92 [17] - The valuation reflects a 41x PE ratio for the 2025 forecast [17] - The smartphone and IoT business is valued at HKD 44.9 per share, while the automotive business is valued at HKD 26.3 per share [19]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [6] Core Views - Xiaomi Group achieved a record high quarterly revenue of 111.3 billion RMB in Q1 2025, representing a year-on-year growth of 47.4% and a Non-IFRS net profit of 10.7 billion RMB, up 64.5% year-on-year, with a net profit margin of 9.6% [1][5] Summary by Sections Smartphone Business - In Q1 2025, Xiaomi's smartphone shipments reached 41.8 million units globally, a 3% year-on-year increase, with a market share of 18.8% in China, up 4.7 percentage points year-on-year, marking a return to the top position in the domestic market [2] - The average selling price (ASP) of Xiaomi smartphones increased to 1211 RMB, reflecting a 5.8% year-on-year and 0.7% quarter-on-quarter growth, driven by government subsidies and a higher proportion of high-ASP domestic shipments [2] - The gross margin for the smartphone business improved to 12.4%, up from 12.0% in Q4 2024, primarily due to an improved product mix in overseas markets [2] IoT and Internet Services - IoT revenue reached 32.3 billion RMB in Q1 2025, with a remarkable year-on-year growth of 59%, driven by a 113.8% increase in smart home appliance revenue [3] - Internet services revenue grew by 13% year-on-year to 9.1 billion RMB, with advertising revenue increasing by 20%, contributing to the overall growth of the internet business [3] Automotive and AI Innovations - The newly integrated "Smart Electric Vehicles and AI Innovations" business generated 18.6 billion RMB in revenue in Q1 2025, with a gross margin of 23.2% [4] - The delivery volume of Xiaomi's vehicles increased to 75,869 units, an 8.9% quarter-on-quarter rise, with the ASP of vehicles rising to 238,000 RMB [4] Profit Forecast and Valuation - The report raises the Non-IFRS net profit forecasts for 2025 and 2026 to 46.4 billion RMB and 65.6 billion RMB, respectively, with a new forecast for 2027 set at 84.9 billion RMB [5] - The projected revenue for 2025 is 492.9 billion RMB, with a growth rate of 34.7% [9]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group (1810.HK) [6] Core Insights - Xiaomi achieved a record high quarterly revenue of 111.3 billion RMB in Q1 2025, representing a year-on-year growth of 47.4% and marking the second consecutive quarter with revenue exceeding 100 billion RMB [1] - The Non-IFRS net profit reached 10.7 billion RMB, up 64.5% year-on-year, with a net profit margin improvement to 9.6% [1] - The company regained the top position in the domestic smartphone market with a market share of 18.8%, a 4.7 percentage point increase year-on-year, and a 40% growth in shipments in China, significantly outpacing the industry growth rate of 5% [2] - The average selling price (ASP) of Xiaomi smartphones increased to 1,211 RMB, reflecting a 5.8% year-on-year and 0.7% quarter-on-quarter growth, driven by higher ASP products in the domestic market [2] - The gross margin for the smartphone business improved to 12.4%, up from 12.0% in the previous quarter, benefiting from an improved product mix in overseas markets [2] Summary by Sections Smartphone Business - Xiaomi's global smartphone shipments reached 41.8 million units in Q1 2025, a 3% year-on-year increase, with a notable performance in the Chinese market [2] - The ASP of smartphones rose due to increased sales of high-end models and government subsidies [2] IoT and Internet Services - IoT revenue surged to 32.3 billion RMB, a 59% year-on-year increase, with significant growth in smart home appliances [3] - Internet services revenue grew by 13% to 9.1 billion RMB, driven by a 20% increase in advertising revenue [3] - The number of monthly active users (MAU) for Xiaomi's internet services reached 720 million globally and 180 million in mainland China, both hitting record highs [3] Automotive and AI Innovations - The newly integrated "Smart Electric Vehicles and AI Innovations" business generated 18.6 billion RMB in revenue with a gross margin of 23.2% [4] - The delivery volume of vehicles increased to 75,869 units, an 8.9% quarter-on-quarter rise, with the ASP of vehicles slightly increasing to 238,000 RMB [4] - The YU7 series, a luxury high-performance SUV, is set to launch in July 2025 [4] Financial Forecast and Valuation - The report raises the Non-IFRS net profit forecasts for 2025 and 2026 to 46.4 billion RMB and 65.6 billion RMB, respectively, with a new forecast for 2027 at 84.9 billion RMB [5] - The revenue projections for 2025 and beyond show significant growth, with a projected revenue of 492.9 billion RMB in 2025, reflecting a 34.7% growth rate [5]

Investment Rating - The report maintains a "Strong Buy" investment rating for Xiaomi Group [1][6] Core Views - The company achieved record high performance in Q1 2025, with revenue of 111.3 billion yuan, a year-on-year increase of 47.4% and a quarter-on-quarter increase of 2.1% [1][5] - Adjusted net profit reached 10.68 billion yuan, marking a year-on-year increase of 64.5% and a quarter-on-quarter increase of 28.4%, surpassing the 10 billion yuan mark for the first time [1][5] - The company is focused on its "New Decade Goals," with significant investments in core technologies, reporting R&D expenses of 6.7 billion yuan in Q1 2025, a year-on-year increase of 30.1% [5][6] Summary by Sections Financial Performance - Q1 2025 revenue was 111.3 billion yuan, with a gross margin of 22.8%, a historical high [5] - The company reported a net profit of 10.68 billion yuan, with a gross margin increase of 0.5 percentage points year-on-year [5] Mobile Business - Revenue from the mobile segment was 50.6 billion yuan, with a year-on-year increase of 8.9% [5] - The average selling price (ASP) of smartphones reached 1,211 yuan, a historical high, driven by increased domestic sales [5] IoT Business - IoT revenue was 32.3 billion yuan, a year-on-year increase of 58.7% [5] - The gross margin for IoT products was 25.2%, reflecting strong growth in smart home appliances [5] Internet Services - Internet services revenue was 9.1 billion yuan, with a year-on-year increase of 12.8% [5] - The gross margin for internet services improved to 76.9% [5] Automotive Business - Revenue from the automotive segment was 18.6 billion yuan, with a gross margin of 23.2% [5] - The company delivered 76,000 units of its electric vehicles in Q1 2025, with expectations for continued growth following the launch of the YU7 model [5][6] Future Outlook - The report projects total revenue for 2025, 2026, and 2027 to be 519.1 billion yuan, 706.7 billion yuan, and 907.5 billion yuan respectively, with adjusted net profits of 45.8 billion yuan, 67.7 billion yuan, and 92.6 billion yuan [6][7]

Investment Rating - The investment rating for Xiaomi Group-W (01810.HK) is "Buy-A" with a 12-month target price of 73.23 HKD [3][7]. Core Insights - Xiaomi reported a record high performance in Q1 2025, achieving revenue of 111.29 billion, a year-on-year increase of 47.4%, and an adjusted profit of 10.68 billion, up 64.5% [1]. - The company has improved operational efficiency in its mobile and AIoT segments, with a mobile and AIoT gross margin of 22.8%, up 2.2 percentage points quarter-on-quarter [1]. - The automotive segment is showing signs of growth, with a delivery volume of 76,000 units and an average selling price (ASP) of 238,000, contributing significantly to revenue [3]. Summary by Sections Financial Performance - In Q1 2025, Xiaomi's revenue reached 1112.93 billion, a 47.4% increase year-on-year, with an adjusted profit of 106.75 billion, reflecting a 64.5% growth [1]. - The mobile segment's revenue was 506.12 billion, up 8.9%, with a notable ASP increase of 5.8% to 1210.6 [2]. - IoT revenue was 323.4 billion, a 58.7% increase, with a gross margin of 25.2%, up 4.7 percentage points [2]. Market Position - Xiaomi regained the top market share in mainland China with a 40% increase in mobile shipments, reaching 13.3 million units [2]. - The company is expanding its high-end product strategy, which has positively impacted internet service revenue, growing 12.8% to 9.1 billion [2]. Automotive Segment - The automotive division's revenue reached 185.8 billion, with a gross margin of 23.2%, indicating ongoing scale effects [3]. - The Yu7 model is expected to be a strong performer, with attention on its sales and production capacity in the upcoming months [3]. Long-term Strategy - Xiaomi's focus on ecosystem investments, AI capabilities, and operational efficiency is expected to drive future growth and valuation [6][7]. - Revenue projections for 2025-2027 are estimated at 501.5 billion, 634.4 billion, and 733.2 billion respectively, with a compound annual growth rate (CAGR) of 17.4% for the mobile and AIoT segments [7][9].

Core Viewpoint - Xiaomi Group reported a strong performance in Q1 2025, with revenue reaching 111.3 billion yuan, a year-on-year increase of 47.4%, and adjusted net profit exceeding 10.7 billion yuan, up 64.5%, surpassing market expectations [2] Group 1: Financial Performance - Revenue from the core business of smartphones and AIoT was 92.7 billion yuan, a year-on-year increase of 22.8% [2] - Smartphone revenue was 50.6 billion yuan, reflecting an 8.9% year-on-year growth [2] - IoT and lifestyle product revenue reached 32.3 billion yuan, a significant increase of 58.7%, marking a historical high [2] - Internet services revenue was 9.1 billion yuan, up 12.8% year-on-year, with a gross margin of 76.9% [4] Group 2: Market Position - Xiaomi's smartphone shipment in mainland China ranked first for the first time in ten years, with a market share of 18.8%, up 4.7 percentage points year-on-year [3] - Globally, Xiaomi maintained a top-three position for 19 consecutive quarters, with a market share of 14.1% [3] Group 3: Innovation and Growth - Revenue from smart electric vehicles and AI-related businesses reached 18.6 billion yuan, with the SU7 series delivering 75,869 units in Q1 [3] - The SU7 series has cumulatively delivered over 258,000 units as of May 21, 2025, with a target of 350,000 units for the year [3] - R&D investment increased by 30.1% to 6.7 billion yuan, with a total expected investment of 30 billion yuan for the year [4][5]

Core Insights - SEALCOIN AG, a subsidiary of WISeKey, is advancing towards its token launch with significant milestones in decentralized IoT transactions [1][5] - The latest version of the SEALCOIN WhitePaper introduces an upgraded tokenomics model aimed at enhancing utility and governance for the upcoming TIOT token [2] - The Minimum Viable Product (MVP) of the SEALCOIN platform has been launched and is currently in beta testing, allowing real-time peer-to-peer device transactions [3] - A successful device-to-device transaction over satellite was completed in April 2025, demonstrating SEALCOIN's capability for secure microtransactions in off-grid environments [4] Company Overview - SEALCOIN is designed to enable scalable transactional IoT by embedding secure payment and authentication capabilities into IoT devices [6] - WISeKey operates as a Swiss-based holding company with several subsidiaries focusing on various technology aspects, including cybersecurity, digital identity, and IoT solutions [8] - WISeKey has deployed over 1.6 billion microchips across various IoT sectors, playing a crucial role in securing the Internet of Everything [9] Use Cases - Key use cases for SEALCOIN include energy trading, Device-as-a-Service (DaaS), smart home automation, and a data marketplace for secure IoT data exchange [7]