Investment Rating - The report maintains a "Recommended" rating for Xiaomi Group [6] Core Views - Xiaomi Group achieved record high revenue in Q2 2025, with a total revenue of 1159.56 billion RMB, representing a year-over-year increase of 30.5% [2] - The company's adjusted net profit for Q2 2025 reached 108.31 billion RMB, a year-over-year increase of 75.4% [2] - The automotive business is entering a phase of rapid growth, with Q2 2025 revenue from smart electric vehicles reaching 206 billion RMB [3] - The company is focusing on high-end smartphone development and has successfully launched its self-developed 3nm flagship SoC chip [4] Summary by Sections Financial Performance - For H1 2025, Xiaomi Group reported revenue of 2272.49 billion RMB, a year-over-year increase of 38.23%, and an adjusted net profit of 215.06 billion RMB, up 69.8% [1] - The gross margin for H1 2025 was 22.7%, an increase of 1.3 percentage points year-over-year [1] Business Segments - The smartphone segment generated revenue of 455.20 billion RMB in Q2 2025, with a year-over-year growth of 8.9% [3] - The IoT segment achieved revenue of 387.12 billion RMB in Q2 2025, marking a year-over-year increase of 44.7% [3] - The automotive and AI innovation segment reported revenue of 212.63 billion RMB in Q2 2025, with a gross margin of 26.4% [3] Market Position - Xiaomi's global smartphone market share reached 14.7% in Q2 2025, maintaining a top-three position for 20 consecutive quarters [3] - The company ranked second in the "2025 Kantar BrandZ Top 50 Globalization Brands" and improved its position in the Fortune Global 500 list to 297th, up 100 places from the previous year [2] Future Projections - Revenue projections for Xiaomi Group are estimated at 5092.95 billion RMB for 2025, 6251.70 billion RMB for 2026, and 7361.50 billion RMB for 2027 [4] - The expected adjusted net profit for the same years is 404.23 billion RMB, 525.07 billion RMB, and 652.09 billion RMB respectively [4]

Core Viewpoint - Xiaomi has made significant strides in self-developed chip technology, showcasing its "玄戒 O1" chip, positioning itself as the fourth global company capable of designing 3nm SoC chips, following Apple, Qualcomm, and MediaTek [1][28]. Group 1: Xiaomi's Development Journey - Xiaomi's journey in chip development has spanned 11 years since the establishment of Pinecone Electronics, contrasting with Huawei's 22-year timeline [1][28]. - The company has leveraged its manufacturing advantages and internet thinking to disrupt high-value markets dominated by Apple and Samsung, creating a "catalyst effect" in the Chinese tech ecosystem [1][12]. - Xiaomi's approach integrates supply chain resources and fosters close partnerships with suppliers, ensuring product quality and stability [12][13]. Group 2: Market Position and Strategy - Xiaomi's strategy emphasizes high cost-performance, targeting young consumers and ordinary families, while Huawei focuses on the mid-to-high-end market with a premium pricing strategy [20][25]. - The competition between Xiaomi and Huawei is not merely adversarial; both companies contribute to a robust consumer electronics ecosystem that drives innovation and product iteration [25][18]. - Xiaomi's expansion into smart home products and other categories reflects its commitment to building a comprehensive smart ecosystem, with over 1 billion connected IoT devices [19][20]. Group 3: Industry Impact and Future Outlook - The collaboration between Xiaomi and Huawei in supporting suppliers like OFILM Group demonstrates their influence and bargaining power within the supply chain [16][18]. - The evolution of the Chinese consumer electronics industry showcases a shift from OEM and imitation to self-branded products, driven by local market demands [18][30]. - The need for more companies like Xiaomi is emphasized, as they play a crucial role in making technological advancements accessible to the general public [30].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [3][6] Core Views - Xiaomi Group achieved record high revenue and profit in Q1 2025, with total revenue of 111.3 billion yuan, a year-on-year increase of 47.4%, and adjusted net profit of 10.7 billion yuan, up 64.5% year-on-year [1][3] - The smartphone segment regained the top market share in China, with a global shipment of 41.8 million units, a 3% increase year-on-year, and a global market share of 14.1% [1][3] - The IoT business is focusing on high-end and international expansion, with revenue reaching 32.3 billion yuan and a gross margin of 25.2% in Q1 2025 [2][3] - The automotive segment reported revenue of 18.6 billion yuan, with the new SUV model YU7 expected to become a bestseller upon pricing announcement [2][3] Financial Summary - Revenue projections for Xiaomi Group are 486.7 billion yuan in 2025, 634.5 billion yuan in 2026, and 764.8 billion yuan in 2027, with year-on-year growth rates of 33%, 30%, and 21% respectively [3][5] - Adjusted net profit for the main consumer electronics business is expected to be 41.9 billion yuan in 2025, 52.0 billion yuan in 2026, and 61.1 billion yuan in 2027, with growth rates of 25%, 24%, and 18% respectively [3][5] - The report anticipates a significant increase in automotive adjusted net profit, projecting a turnaround to 10.1 billion yuan in 2026 and 20.6 billion yuan in 2027 [3][5] Key Financial Metrics - The report provides a detailed financial forecast, including revenue, adjusted net profit, and earnings per share (EPS) for the years 2023 to 2027, indicating a strong growth trajectory [5][13] - The expected adjusted EPS is projected to be 1.6 yuan in 2025, 2.4 yuan in 2026, and 3.1 yuan in 2027 [3][5] - The price-to-earnings (P/E) ratio is expected to decrease from 29 in 2025 to 15 in 2027, indicating a potentially attractive valuation [3][5]

Investment Rating - The investment rating for Xiaomi Group is "Recommended" (maintained) [1] Core Views - The company reported Q1 2025 earnings that exceeded expectations, with revenue reaching 111.3 billion yuan (up 47.4% year-on-year) and adjusted net profit of 10.7 billion yuan (up 64.5% year-on-year) [4] - The automotive business's losses have narrowed, with a single-quarter operating loss reduced to 500 million yuan, and the SU7 series deliveries reached 75,869 units [6] - The smartphone high-end strategy is progressing, with a market share in mainland China returning to first place, and ASP for smartphones increased to 1,211 yuan (up 5.8% year-on-year) [6] - The smart home appliance business is growing rapidly, with IoT and consumer goods revenue reaching 32.3 billion yuan (up 58.7% year-on-year) and a gross margin of 25.2% [7] - The company has adjusted its net profit forecasts for 2025-2027 to 41.8 billion, 53.4 billion, and 66.6 billion yuan respectively, reflecting strong growth across multiple business segments [7] Summary by Sections Financial Performance - Q1 2025 revenue was 111.3 billion yuan, with a year-on-year growth of 47.4% and adjusted net profit of 10.7 billion yuan, up 64.5% year-on-year [4] - Revenue projections for 2025-2027 are 502.4 billion, 649.6 billion, and 819.2 billion yuan respectively, with year-on-year growth rates of 37.3%, 29.3%, and 26.1% [5][11] Automotive Business - The automotive segment generated revenue of 18.1 billion yuan in Q1, with a gross margin of 23.2% and a narrowed operating loss of 500 million yuan [6] - The upcoming YU7 model is expected to be launched in July, featuring significant upgrades compared to the SU7 [6] Smartphone and IoT Business - Smartphone shipments reached 41.8 million units with revenue of 50.6 billion yuan in Q1, and the ASP increased to 1,211 yuan [6] - The IoT and consumer goods segment saw a revenue increase of 58.7% year-on-year, driven by strong sales in smart appliances [7] Profitability and Valuation - The company’s gross margin is projected to improve, with net profit margins expected to reach 8.3% by 2025 [11] - The P/E ratio is forecasted to decrease from 52.1 in 2024 to 29.5 in 2025, indicating improved valuation metrics [11]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 67.9, indicating a potential upside of 29.28% from the current price of HKD 52.50 [5][8]. Core Insights - The company achieved revenue of RMB 111.3 billion in Q1 2025, a year-on-year increase of 47.4%, surpassing market expectations of RMB 109 billion. The overall gross margin improved to 22.8%, up 0.5 percentage points year-on-year, with a net profit of RMB 10.9 billion, reflecting a 161.0% increase year-on-year [1]. - The smartphone segment returned to the top position in the domestic market with revenue of RMB 50.6 billion, a growth of 8.9%. The market share reached 18.8%, with a shipment increase of 40%, significantly outpacing the industry growth rate of 4.6% [2]. - The IoT segment saw a revenue increase of 58.7% to RMB 32.3 billion, with a gross margin of 25.2%, marking a historical high. The growth was driven by a doubling in revenue from smart home appliances [3]. - The automotive business reported revenue of RMB 18.6 billion, with a gross margin of 23.2%. The new luxury SUV model YU7 received a positive market response, indicating potential for increased average selling price (ASP) [4]. Summary by Sections Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 270.97 billion, with an adjusted net profit of RMB 19.27 billion, reflecting a 126.26% increase year-on-year. Forecasts for 2025 and 2026 predict revenues of RMB 495.65 billion and RMB 627.04 billion, respectively, with adjusted net profits of RMB 45.56 billion and RMB 57.75 billion [6][10]. Market Position - The company has regained its position as the leading smartphone vendor in China, with a significant increase in high-end smartphone shipments, contributing to a rise in average selling price (ASP) to RMB 1,211 [2]. - The IoT segment's growth is attributed to the increasing demand for smart home devices, with a notable rise in gross margin due to government subsidies and a higher proportion of large appliances [3]. Future Outlook - The company plans to invest RMB 200 billion in R&D from 2026 to 2030, focusing on AI and chip technology to strengthen its competitive edge [1]. - The automotive segment is expected to continue its recovery, with the YU7 model anticipated to enhance the company's market competitiveness and ASP [4].

Investment Rating - The report maintains a "Recommended" rating for Xiaomi Group [6] Core Views - Xiaomi Group achieved record revenue of 1112.93 billion RMB in Q1 2025, representing a year-over-year increase of 47.4% and a quarter-over-quarter increase of 2.1% [2] - The company continues to advance its all-ecosystem strategy, with significant growth in IOT and automotive sectors, contributing to overall revenue growth [2][3] - The company is investing 200 billion RMB over the next five years to deepen its core technology capabilities, including the launch of its self-developed 3nm flagship SoC chip [4] Financial Performance Summary - In Q1 2025, Xiaomi's adjusted net profit reached 106.76 billion RMB, up 64.5% year-over-year, with an adjusted net profit margin of 9.6% [2][3] - The IOT business generated revenue of 323.39 billion RMB, a year-over-year increase of 58.7%, with a gross margin of 25.2% [3] - The smartphone segment reported revenue of 506.12 billion RMB, a year-over-year increase of 8.9%, with a gross margin of 12.4% [3] - The automotive segment achieved revenue of 185.80 billion RMB, with a gross margin of 23.2% [3] Revenue and Profit Forecast - Projected revenues for 2025, 2026, and 2027 are 5062.65 billion RMB, 6052.13 billion RMB, and 7008.88 billion RMB respectively, with corresponding net profits of 357.09 billion RMB, 457.75 billion RMB, and 598.89 billion RMB [4][5] - The report anticipates a PE ratio of 35 for 2025, decreasing to 21 by 2027 [4][5]

Investment Rating - The report maintains a "Recommended" rating for the company [6] Core Insights - The company achieved a record revenue of 1112.93 billion RMB in Q1 2025, representing a year-over-year increase of 47.4% and a quarter-over-quarter increase of 2.1% [2][3] - Adjusted net profit reached 106.76 billion RMB, up 64.5% year-over-year and 28.4% quarter-over-quarter, with an adjusted net profit margin of 9.6% [2][3] - The company is focusing on its all-ecosystem strategy, which includes smartphones, AI, and IoT, contributing to robust growth across its business segments [2][3] Revenue Breakdown - The smartphone and AIoT segment generated revenue of 927.13 billion RMB, a year-over-year increase of 22.8% [2] - The IoT business saw revenue of 323.39 billion RMB, up 58.7% year-over-year, driven by a doubling of income from smart home appliances [3] - The automotive segment generated 185.80 billion RMB, with a gross margin of 23.2%, despite a quarterly operating loss of 5 billion RMB [3] Financial Projections - The company forecasts revenues of 5062.65 billion RMB, 6052.13 billion RMB, and 7008.88 billion RMB for 2025, 2026, and 2027 respectively [4] - Expected net profits for the same years are projected at 357.09 billion RMB, 457.75 billion RMB, and 598.89 billion RMB [4] - The report anticipates a decrease in P/E ratios from 35 in 2025 to 21 in 2027, indicating potential growth in profitability [4] Research and Development - The company plans to invest 200 billion RMB in core technology over the next five years, with R&D spending reaching 67 billion RMB in Q1 2025, a 30.1% increase year-over-year [4]

Group 1 - The report highlights the successful hosting of COMPUTEX, focusing on AI, data centers, and robotics as key trends, with major chip manufacturers showcasing innovations [4][35][36] - In April, the semiconductor market showed signs of recovery, with stable chip delivery times and strong AI-related orders, while automotive and industrial demand began to rebound [4][38] - The report anticipates a structural growth driven by AI in Q2, with recommendations to focus on SoC, ASIC, storage, and CIS opportunities [4][39] Group 2 - The report on Lian Micro (立昂微) indicates a record high revenue of 3.092 billion yuan in 2024, a 14.97% increase year-on-year, despite a net loss of 266 million yuan [10][25] - The company is expanding its production capacity and optimizing its product structure to meet the growing demand in AI, electrification, and smart technology sectors [10][27] - The report projects a downward adjustment in profit forecasts for 2025 and 2026, with net profits expected to be 89 million yuan and 180 million yuan respectively, while maintaining a "hold" rating due to anticipated growth in downstream markets [10][29] Group 3 - The report on Huazhi Wine (华致酒行) reveals a significant decline in Q1 2025 revenue and net profit, with a 31.01% drop in revenue to 2.852 billion yuan [11][31] - The company is implementing a comprehensive adjustment strategy to address inventory and sales challenges, aiming for a recovery in profits by 2025 [11][33] - Future revenue projections for 2025-2027 are set at 9.910 billion, 10.670 billion, and 11.192 billion yuan respectively, with a significant expected increase in net profit [11][33]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 75.52 HKD based on a 38x PE valuation for 2026 [3][10]. Core Insights - The company achieved record high revenue and adjusted net profit in Q1 2025, with revenue reaching 111.3 billion CNY, a 47% year-on-year increase, and adjusted net profit of 10.7 billion CNY, up 64% year-on-year [9]. - The smartphone segment showed significant growth, with a 9% increase in revenue to 50.6 billion CNY and a global market share of 14.1%, ranking among the top three globally [9]. - The IoT and lifestyle products segment also saw strong performance, with revenue of 32.3 billion CNY, a 59% increase, and a gross margin of 25.2% [9]. - The internet services segment reported revenue of 9.1 billion CNY, a 13% increase, with a gross margin of 76.9% [9]. - The electric vehicle segment generated 18.6 billion CNY in revenue, with a gross margin of 23.2%, and the company continues to expand its sales network [9]. Financial Summary - Revenue projections for 2025-2027 are 477.67 billion CNY, 575.30 billion CNY, and 690.22 billion CNY, respectively, with year-on-year growth rates of 31%, 20%, and 20% [5][10]. - Adjusted net profit forecasts for the same period are 35.12 billion CNY, 47.32 billion CNY, and 59.00 billion CNY, with growth rates of 48%, 35%, and 25% [5][10]. - The company’s gross margin is expected to improve from 22.5% in 2025 to 23.1% in 2027, while net profit margin is projected to increase from 7.4% to 8.5% [5][10]. - The earnings per share (EPS) forecast for 2025-2027 is 1.35 CNY, 1.82 CNY, and 2.27 CNY, respectively [5][10].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of 75.52 HKD, based on a 38x PE valuation for comparable companies in 2026 [3][10]. Core Insights - The company achieved record high revenue and adjusted net profit in Q1 2025, with revenue reaching 111.3 billion CNY, a 47% year-on-year increase, and adjusted net profit of 10.7 billion CNY, up 64% year-on-year [9]. - Xiaomi's smartphone shipments increased, with a market share of 14.1% globally, ranking among the top three, and a significant return to the top position in China's market with a share of 18.8% [9]. - The IoT and lifestyle products segment also saw strong growth, with revenue of 32.3 billion CNY, a 59% increase year-on-year, and a gross margin of 25.2% [9]. - The internet services segment reported revenue of 9.1 billion CNY, a 13% increase year-on-year, with a gross margin of 76.9% [9]. - The electric vehicle segment generated 18.6 billion CNY in revenue, with a gross margin of 23.2%, and the company continues to expand its sales network [9]. Financial Summary - Revenue projections for 2025-2027 are 477.67 billion CNY, 575.30 billion CNY, and 690.22 billion CNY, respectively, with year-on-year growth rates of 31%, 20%, and 20% [5]. - Adjusted net profit forecasts for the same period are 35.12 billion CNY, 47.32 billion CNY, and 59.00 billion CNY, with growth rates of 48%, 35%, and 25% [5]. - The earnings per share (EPS) estimates for 2025-2027 are 1.35 CNY, 1.82 CNY, and 2.27 CNY, respectively [5][10]. - The gross margin is expected to improve from 22.5% in 2025 to 23.1% in 2027, while the net margin is projected to increase from 7.4% to 8.5% over the same period [5].