2025-09-26 02:32Xiaomi 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.