2025-09-28 14:57Summary of Xiaomi Corp. (1810.HK) Conference Call Company Overview - Company: Xiaomi Corp. (1810.HK) - Industry: Smartphone and Consumer Electronics Key Points and Arguments Sales Performance - The Xiaomi 17 series launched on September 27, 2025, with the Xiaomi 17 Pro Max accounting for over 50% of sales volume on the first day [1][2] - The Xiaomi 17 series broke the first-day sales volume and GMV record for domestic smartphone models in 2025 YTD within 5 minutes of launch [1] - The 17 Pro series is estimated to have accounted for over 80% of the Xiaomi 17 series sales volume on Day 1, with 33% for Pro and 54% for Pro Max [3][9] Pricing Strategy - The starting price for the 17 Pro is Rmb4,999, which is Rmb200-500 lower than previous versions, while the 17 Pro Max is 50% cheaper than the iPhone 17 Pro Max in China [1] - This competitive pricing strategy is expected to attract consumers from the base model and expand the consumer base [1] Market Dynamics - Xiaomi's share price experienced high volatility, dropping 8% on September 26 and rising 4% on September 25, attributed to high investor expectations and market concerns regarding sales volume of the base model [2] - The favorable sales mix of the 17 Pro/Pro Max is expected to reverse concerns about soft sales volume of the base model [2] Premiumization Strategy - The favorable sales mix could drive a mid-teen percentage increase in average selling price (ASP) compared to the previous generation [3] - Xiaomi's premiumization execution is supported by enhanced R&D investments, expanding retail channels, and an integrated "Human x Car x Home" ecosystem [3] Competitive Landscape - The iPhone 17 base model recorded the highest sales volume increase in its first week, indicating strong competition in the smartphone market [3][11] Long-term Outlook - Xiaomi is positioned as the world's 3 smartphone brand with a projected 13.8% of 2024 shipments and is in the early stages of a multi-year ecosystem expansion [13] - The company is expected to achieve revenue and EPS CAGRs of 26% and 37% respectively from 2024 to 2027 [13] - Xiaomi's robust balance sheet and capabilities in software-hardware integration are expected to enhance its competitiveness in the EV market [13] Price Target and Risks - The 12-month target price for Xiaomi is set at HK$66, representing an upside of 20.8% from the current price of HK$54.65 [16] - Key downside risks include intense competition, higher GPM pressure, execution risks in brand premiumization, geopolitical risks, and softer macroeconomic conditions [14] Additional Insights - The company is leveraging its interconnected consumer terminals to build one of the largest consumer physical intelligence ecosystems globally [13] - The sales volume mix may change based on pricing strategy and competitive landscape [3] This summary encapsulates the critical insights from the conference call regarding Xiaomi Corp.'s recent performance, market dynamics, and strategic outlook.