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: Product Launch - Xiaomi launched the Xiaomi 15T series of smartphones, including the Xiaomi 15T and Xiaomi 15T Pro, during an event in Munich as part of its global expansion strategy [1][2] - The devices are priced at 649 euros ($766) and 799 euros, featuring a triple-camera system, a large 6.83-inch display, and significant battery power [2][3] Group 2: Competitive Positioning - Xiaomi aims to position the 15T series as a contender to Samsung's mid-range A series and top-end S series smartphones, with the 15T being described as an affordable flagship with high-end features [2][3] - In Europe, Xiaomi has become the third largest smartphone player by market share, following Samsung and Apple, through a mix of high-end and mid-tier devices [4] Group 3: Strategic Focus - The launch of the 15T series is part of Xiaomi's premiumization strategy, targeting budget-sensitive, spec-focused buyers who prefer high-end devices [5] - Xiaomi announced the global launch of its Mijia brand of home appliances, including a refrigerator, washing machine, and air conditioner, indicating its ambition to expand beyond smartphones [5][6]