Xiaomi Corp. (1810.HK) Conference Call Summary Company Overview - **Company**: Xiaomi Corp. - **Ticker**: 1810.HK - **Market Cap**: HK$1.5 trillion / US$198.1 billion - **Enterprise Value**: HK$1.3 trillion / US$172.5 billion - **Current Price**: HK$59.45 - **Target Price**: HK$66.00 - **Upside Potential**: 11.0% [1][21] Key Product Launches - **Xiaomi 17 Series**: Launched flagship smartphones including Xiaomi 17, 17 Pro, and 17 Pro Max with innovative features and competitive pricing starting from Rmb4,499 for the base model [1][25] - **AIoT Products**: Introduction of 6 new premium AIoT products including tablets, TVs, routers, and smart speakers, with a focus on the European market [1][44] - **HyperOS 3.0**: Upgraded operating system with enhanced efficiency and AI capabilities [1][46] Core Insights 1. **Smartphone Pricing Strategy**: - The 17 Pro's pricing is Rmb200-500 lower than previous versions, potentially attracting more consumers and increasing market share in the Rmb5k+ segment [2][27] - Xiaomi's market share in the Rmb5-6k segment was approximately 15% in 2Q25, compared to 25% in the Rmb4-5k segment [2][21] 2. **Electric Vehicle (EV) Commitment**: - Launched customization services for YU7 Max and SU7 Ultra, aiming to strengthen its position in China's premium auto market [3][22] - Average delivery capacity is expected to increase as the run rate approaches 10k units/week [3][22] 3. **AIoT Warranty Service**: - Announced a 10-year free warranty for all ACs sold from 2025, surpassing the industry standard of 6 years [4][20] Financial Projections - **Revenue Growth**: - Projected revenue for 2024 is Rmb365.9 billion, increasing to Rmb737.6 billion by 2027 [7][21] - Total revenue growth rates are expected to be 35.0% in 2024, 29.2% in 2025, and 20.0% in 2027 [15][21] - **Earnings Per Share (EPS)**: - New EPS estimates are Rmb1.07 for 2024, Rmb1.56 for 2025, and Rmb2.62 for 2027 [7][21] - **Profit Margins**: - EBITDA margin projected to increase from 8.4% in 2024 to 11.9% in 2027 [15][21] Market Dynamics - **AIoT Revenue Growth**: Expected to moderate in 2026 due to a higher base, with a notable slowdown in growth rates [50][21] - **Competitive Landscape**: Xiaomi's pricing strategy aims to capture market share from competitors, particularly in the premium smartphone segment [27][21] Additional Considerations - **Upcoming Events**: - Monitoring EV delivery capacity ramp-up and Singles' Day GMV data [22][21] - Anticipation of new EV model filings with MIIT [22][21] - **Investment Recommendation**: - Maintain a "BUY" rating with a target price of HK$66, reflecting a modest increase from previous estimates [21][1] This summary encapsulates the key points from the Xiaomi conference call, highlighting product launches, financial projections, and strategic insights into the company's market positioning and future outlook.

Group 1 - Chinese tech stocks are experiencing a rally, with the Hang Seng Tech Index rising 0.9%, marking its eighth consecutive weekly advance, the longest winning streak since its inception [1][2] - The upward momentum is attributed to grassroots AI advancements and government support for the sector, alongside Alibaba's plans to increase AI spending and its partnership with Nvidia [2][3] - The benchmark's year-to-date gain has reached approximately 44%, indicating a significant recovery from the previous year's regulatory challenges and economic slowdown [3] Group 2 - JD.com shares increased by 3.5% as the company announced plans to invest over the next three years to build a trillion-yuan AI ecosystem [5] - Xiaomi shares rose over 4% ahead of the launch of its flagship smartphone, the Xiaomi 17, which will compete with Apple's iPhone 17 [5] - Baidu's shares climbed over 2% following the announcement that its autonomous driving unit received a driving trial permit in Dubai [5] Group 3 - The Hang Seng Tech Index is now trading at 21.5 times forward earnings estimates, exceeding its three-year average of 18, indicating a technically overbought condition [6]

Investment Rating - The report maintains an Overweight (O/W) rating for Taiwan, Neutral/Weight (N/W) for Korea, and moves Japan to Neutral/Weight from Underweight (U/W), while China is rated Underweight (U/W) from Neutral/Weight [4]. Core Insights - The smartphone industry unit Sell In forecasts have been raised to +3% YoY for 2025 and +1% YoY for 2026, with PC forecasts increased to +4% YoY for 2025 and +3% YoY for 2026, and server forecasts to +6% YoY for 2025 and +4% YoY for 2026 [1][9]. - AI demand remains robust, with expectations for Nvidia's GB200/300 NVL72 racks in 2025 at 28-29k and initial conservative estimates for 2026 at around 50-60k [1]. - The foundry outlook for 3nm and 2nm is strong, driven by AI accelerator projects, while DDR and NAND supply is tightening, with DDR potentially "sold out" until 2027 [2]. - Wafer Fab Equipment (WFE) spending is trending upwards, with forecasts for 2025 at US$109 billion (+12% YoY) and 2026 at US$118 billion (+8% YoY) [3]. Summary by Sections Smartphones - The smartphone market is expected to see unit Sell In of 1.26 billion in 2025 (+3% YoY) and 1.27 billion in 2026 (+1% YoY), with Apple’s iPhone 17 builds projected to increase [9][11]. - Component upgrades in the iPhone 17 series include significant camera enhancements, indicating ongoing technological advancements despite cost pressures [12]. PCs - Global PC unit shipments are forecasted to grow by +4.4% YoY in 2025 and +3.4% YoY in 2026, with commercial segments showing resilient momentum due to the Windows 10 EOL replacement cycle [16][19]. - The report highlights a modestly positive outlook for PC shipments, with consumer PCs expected to grow 0.5% YoY in 2025, while commercial PCs are forecasted to grow by +6.6% YoY [19]. Memory and Foundry - The report indicates a tightening supply for DDR and NAND, with long-term agreements being established by major customers, particularly US hyperscalers [2]. - The outlook for 3nm and 2nm foundries is robust, with expectations for multi-year growth driven by AI projects [2]. Wafer Fab Equipment - WFE spending is expected to increase, particularly from Korean memory makers, with forecasts for domestic China WFE at US$37 billion in 2025 (+3% YoY) [3].

Core Viewpoint - A critical security vulnerability has been discovered in OnePlus smartphones, allowing unauthorized access to SMS and MMS without user consent, with no response from OnePlus regarding the issue [1][4]. Group 1: Vulnerability Details - The vulnerability is identified as CVE-2025-10184, with a CVSS score of 8.2/10, stemming from a flaw in the internal component com.oneplus.provider.telephony [4]. - Multiple versions of OxygenOS are affected, specifically versions 12 to 15, while OxygenOS 11 is not impacted [1][4]. - The vulnerability allows malicious applications to silently access and transmit SMS and MMS data to external servers without user interaction or notification [4]. Group 2: Response from OnePlus - RAPID7 attempted to contact OnePlus for feedback starting May 1, 2025, but received no response after multiple attempts, including contacting customer service and reaching out via social media [5]. - The lack of communication from OnePlus led RAPID7 to publicly disclose the vulnerability and provide exploit code as a last resort to prompt a fix [5].

Core Insights - Qualcomm has officially launched its new flagship mobile platform, Snapdragon 8 Gen 5 Elite, positioning it as the fastest mobile SoC globally [1][2] - The platform features significant enhancements in CPU, GPU, and AI performance, along with innovations in imaging technology [1] Performance Enhancements - The Snapdragon 8 Gen 5 Elite utilizes advanced 3nm process technology, with the third-generation Qualcomm Oryon CPU achieving a 20% performance increase and a maximum clock speed of 4.6GHz [1] - The new Adreno GPU architecture provides a 23% performance boost, catering to high-load scenarios such as large-scale gaming [1] - Qualcomm's Hexagon NPU has seen a 37% performance improvement, supporting more complex on-device AI applications [1] AI and Imaging Innovations - A key focus of the upgrade is personalized AI experiences on-device, enabling continuous learning and real-time perception through multimodal AI models [2] - The platform is the first globally to support Advanced Professional Video (APV) codec recording, offering greater post-production flexibility for professional video creators [2] Device Launches - Several smartphone brands have confirmed the launch of new flagship products featuring the Snapdragon 8 Gen 5 Elite, with Xiaomi's 17 series being the global debut model [2] - Other confirmed models include iQOO 15 series, OnePlus 15 series, RedMagic 11 series, Nubia Z80 series, Honor Magic 8 series, and Honor MagicPad 3 Pro, with additional support from major manufacturers like ZTE, Samsung, Sony, OPPO, and realme [2]

Apple has roughly doubled in value since 2023, but it hasn't done nearly as well as other top tech stocks.The "Magnificent Seven" is a collection of some of the largest, most recognizable names in tech. How they perform can serve as a gauge of how the overall sector is doing. And with deep pockets, if they're doing well and spending a lot of money, that can result in a lot of growth for the overall economy.Some of those stocks, however, have been doing far better than others. The weakest performer in the Ma ...

Group 1 - Apple's CEO Tim Cook visited Japan for the first time since December 2022, highlighting the reopening of the renovated Apple Ginza store as a significant milestone for the company in Japan [1] - The reopening of the Ginza store symbolizes Apple's strong connection with customers and communities in Japan, as it was the first retail store opened outside the United States [1] - Apple faces new competition regulations in Japan, effective December 18, which aim to lower barriers for external companies in the smartphone app distribution and payment markets, potentially impacting Apple's business model [1] Group 2 - Japan currently accounts for approximately 6% to 8% of Apple's total sales, with a decline in market share attributed to a weak yen [2] - In the second quarter, Apple's smartphone shipment share in Japan was 46.4%, reflecting a year-on-year decrease of 6.4 percentage points [2] - Apple has been increasingly inviting influencers from China and India to its product launch events, indicating a shift in marketing strategy [2]

Core Viewpoint - iQOO 15 introduces significant advancements in display, chip, and system technology aimed at enhancing gaming performance and visual experience, bridging the gap between mobile and PC gaming [1] Group 1: Display Technology - The device features a 2K LEAD OLED "Everest Screen" developed in collaboration with Samsung, which eliminates the polarizing layer to improve light efficiency [1] - The screen achieves a manual brightness of 1000 nits and a peak local brightness of 6000 nits, supporting a refresh rate of 144Hz and a touch sampling rate of 3200Hz [1] - It includes dynamic brightness adjustment and hardware-level eye protection features [1] Group 2: Chip Technology - iQOO's self-developed gaming chip Q3 is introduced, supporting full-scene ray tracing and QNSS super rendering engine [1] - The chip offers game super-resolution and super-frame capabilities, similar to DLSS 2.0, enhancing image detail and frame rates with low power consumption [1] - It is compatible with over 180 games for super-resolution or super-frame processing, achieving true 2K output for several mainstream games [1] Group 3: System Enhancements - The Monster super core engine integrates the "Prophet Scheduler" and "Lightning Accelerator" to predict game frame rate demands and allocate computing resources efficiently [1] - This system reduces latency and power consumption, with the new Monster mode optimizing performance and thermal management under high-load scenarios [1] - The technologies aim to reduce the performance gap between mobile devices and PCs in gaming visuals and response times [1]

Core Insights - The next step for high-end smartphones is to see if AI can provide proactive, precise, and cross-device services, with Honor's Magic 8 featuring self-evolving AI and YOYO intelligent agent as their solution [1] - The upcoming Honor Magic 8 AI native phone is expected to be the standout flagship for Q4, emphasizing its advanced AI capabilities [1] - Honor's CEO highlighted that the Magic 8 is not just an AI phone but a "new era AI phone" with comprehensive self-evolution capabilities, featuring a 200 million long-focus camera and a new AI button [1]

Summary of BYDE (0285.HK) Conference Call Company Overview - **Company**: BYDE (0285.HK) - **Industry**: Technology and Automotive Key Points and Arguments Revenue Growth Expectations - BYDE's revenue for 2H25 is expected to grow by **35% HoH** due to improved seasonality and the smart driving trend, alongside a new smartphone product cycle [1][2] - The company is expanding into AI data centers, which may diversify its end markets in the long run [1] Market Conditions - The global smartphone shipment increased by **1% YoY** in 1H25, while the China market declined by **6.5% YoY** [1] - BYD's vehicle shipment increased by **33% YoY** in 1H25, with July and August showing slight growth of **0.56% YoY** and **0.15% YoY**, respectively [1] Financial Performance and Projections - Net income estimates for BYDE have been reduced by **11%/24%/26%** for 2025E/26E/27E due to lower revenue and gross margin (GM) expectations [2] - The gross margin is projected to expand to **9.7% by 2027E** from **6.9% in 1H25** [2][6] - Automotive electronics are expected to contribute **25% of total revenue by 2027E**, down from a previous estimate of **29%** [2] R&D and Operational Expenses - R&D expenses are anticipated to grow at a **30% CAGR** to **Rmb8.9bn (US$1.3bn)**, maintaining a ratio of **3.8%** similar to 2022-23 levels [2] - The operating expense (opex) ratio is expected to increase slightly in 2026E/27E due to higher R&D expenses [2] Earnings Revision - The earnings revision reflects a slower end market growth and the time required for the AI data center expansion to offset impacts [2] - Despite the earnings cut, BYDE is expected to achieve a **net income CAGR of +26%** from 2025E to 2027E [6] Valuation and Price Target - The target price has been lowered by **3.5% to HK$53.08**, implying a **2026E P/E of 17.1x** [11] - The new target price reflects a positive view on BYDE's product mix upgrade and is in line with peers [11][15] Risks - Key risks include customer concentration in the automotive business, slower-than-expected ramp-up of automotive products, and increased competition [16] Additional Important Information - BYDE's strategy focuses on leading customers like Apple and expanding product lines, which is expected to drive up dollar content per vehicle [2] - The company is maintaining a **Buy** rating despite the earnings revisions, indicating confidence in its long-term growth strategy [11][19]