2025-11-24 01:46Summary of Xiaomi Corp Conference Call Company Overview - Company: Xiaomi Corp (Ticker: 1810.HK) - Industry: Greater China Technology Hardware - Market Cap: US$123.685 billion - Current Stock Price: HK$37.70 (as of November 20, 2025) - Price Target: HK$62.00, representing a 64% upside potential Key Points Industry Dynamics - Memory Cost Increase: The company is facing rising memory costs and plans to implement multiple strategies to mitigate the impact, including: 1. Raising Average Selling Price (ASP) to pass on costs 2. Optimizing product mix to focus on high-end products less sensitive to memory costs 3. Implementing stricter cost control measures across smartphone and other business units [1][2][3] Electric Vehicle (EV) Business - New EV Models: The company anticipates the introduction of new EV models in 2026, with accelerated delivery and shorter lead times for existing models (SU7 Pro and Pro Max). News regarding these models is expected within the next three to six months, which could serve as a positive catalyst for the stock [2][3] AIoT Business Performance - Growth Metrics: Both domestic and overseas divisions of the AIoT business have shown positive year-over-year growth in Q3 2025, with overseas growth outpacing domestic growth. The trend is expected to continue into 2026, indicating a stronger growth profile for the overseas division [3] Financial Projections - Earnings Estimates: - FY 2025 EPS: Rmb 1.53 - FY 2026 EPS: Rmb 1.87 - FY 2027 EPS: Rmb 2.35 - Revenue Estimates: - FY 2025: Rmb 467.7 billion - FY 2026: Rmb 592.0 billion - FY 2027: Rmb 677.6 billion - EBITDA Estimates: - FY 2025: Rmb 41.8 billion - FY 2026: Rmb 58.9 billion - FY 2027: Rmb 76.7 billion [5] Risks and Considerations - Upside Risks: - Better-than-expected orders and customer feedback for the second EV model - Successful offline expansion in China contributing to strong volume - Increased market share in overseas markets - Downside Risks: - Intense competition in the EV sector in 2025 - Pressure on smartphone gross margins due to inventory destocking and weak demand - Concerns regarding smart EV investments potentially exerting pressure [10] Analyst Ratings - Current Rating: Overweight - Analyst: Morgan Stanley - Industry View: In-Line [5][10] Additional Information - 52-Week Stock Price Range: HK$26.80 - HK$61.45 - Average Daily Trading Value: US$1.259 million - Shares Outstanding: 25,501 million [5] This summary encapsulates the critical insights from the conference call, highlighting Xiaomi Corp's strategies, performance metrics, and market outlook.