2025-11-24 01:46Summary of Xiaomi Corp. Conference Call Company Overview - Company: Xiaomi Corp. (1810.HK) - Industry: Technology, specifically in smartphones and AIoT (Artificial Intelligence of Things) Key Points and Arguments Product Development and Innovation - Xiaomi launched the MiMo-Embodied model on November 21, which integrates autonomous driving and embodied AI capabilities, achieving state-of-the-art performance across 17 embodied AI benchmarks and 12 autonomous driving benchmarks [1][2] - The HAD (Hyper Autonomous Driving) edition was also released, featuring reinforcement learning and a new Automatic Emergency Steering (AES) function, with 473,000 active users, representing 90% of Xiaomi car users [2][3] Research and Development - Xiaomi plans to invest over RMB 7 billion in AI R&D in 2025, which constitutes 22% of its projected total R&D expenses of over RMB 32 billion [3] - The company has established multiple teams focused on AI, including MiMo, MiML Plus, and AI Lab, with a dedicated smart driving team of over 1,800 employees, including 108 PhDs [3] Future Technology Directions - Xiaomi aims to transition its smart driving technology to a cognitive-driven solution, moving away from rule-driven and data-driven approaches [4] - The company is developing the VLA model, which will be based on its foundational models, including LLM (Large Language Model) and VLM (Vision Language Model) [4] Financial Outlook and Investment Thesis - Xiaomi is rated as a Buy with a 12-month target price of HK$53.5, indicating a potential upside of 40.5% from the current price of HK$38.08 [9][16] - The company is expected to experience revenue and EPS CAGRs of 24% and 28% respectively from 2024 to 2027, driven by its "Human x Car x Home" strategy [14] Risks and Challenges - Key risks include intense competition in the smartphone market, pressure on gross profit margins, execution risks in brand premiumization, geopolitical risks, and fluctuations in foreign exchange rates [15] Share Repurchase Activity - Xiaomi has increased its share repurchase activity, totaling HK$2.3 billion year-to-date, compared to HK$3.7 billion in 2024, at an average price of HK$42.2 [9] Performance Metrics - Projected financial metrics include: - Revenue: Expected to grow from RMB 365.9 billion in 2024 to RMB 704.4 billion by 2027 - EBITDA: Projected to increase from RMB 30.8 billion in 2024 to RMB 75.9 billion in 2027 - EPS: Expected to rise from RMB 1.07 in 2024 to RMB 2.23 in 2027 [16] Additional Insights - Xiaomi's ecosystem strategy is expected to drive differentiation and support premiumization within its "Human x Car x Home" framework [9] - The company is positioned to leverage its interconnected consumer terminals to build a significant consumer physical intelligence ecosystem globally [14] This summary encapsulates the critical insights from the conference call, highlighting Xiaomi's innovative advancements, financial outlook, and strategic direction within the technology sector.