XIAOMI(01810) 民生证券·2024-08-22 16:07Investment Rating - The report maintains a "Recommend" rating for Xiaomi Group-W (1810 HK) [1][2] Core Views - Xiaomi's 2Q24 performance exceeded expectations with revenue reaching RMB 888 88 billion (+32 0% YoY) and adjusted net profit of RMB 61 75 billion (+20 1% YoY) [1] - The company's smartphone×AIoT business achieved revenue of RMB 825 billion (+22 5% YoY) with a gross margin of 21 1% [1] - Xiaomi's global smartphone shipments reached 42 2 million units (+28 1% YoY) maintaining its position as a top-three global smartphone vendor with a 14 6% market share [1] - The company's smart electric vehicle business achieved revenue of RMB 6 2 billion with a gross margin of 15 4% and delivered 27 307 Xiaomi SU7 series vehicles [1] Business Performance Smartphone Business - Smartphone revenue reached RMB 465 billion (+27 1% YoY) with a gross margin of 12 1% [1] - High-end smartphone shipments in mainland China accounted for 22 1% of total smartphone shipments (+2 0pct YoY) [1] - Market share in the RMB 5000-6000 price segment in China increased by 2 3pct to 8 9% [1] IoT and Lifestyle Products - IoT and lifestyle product revenue reached RMB 268 billion (+20 3% YoY) with a gross margin of 19 7% (+2 2pct YoY) [1] - Major home appliance business revenue grew by 38 7% YoY [1] Internet Services - Internet service revenue reached RMB 83 billion (+11 0% YoY) with a gross margin of 78 3% (+4 2pct YoY) [1] - Global and mainland China monthly active users reached record highs [1] International Business - Overseas market revenue reached RMB 381 billion accounting for 43% of total revenue [1] - Xiaomi ranked among the top three smartphone vendors in 58 countries and regions and top five in 70 countries and regions [1] - The company achieved top-two smartphone shipments in Latin America for the first time [1] Smart Electric Vehicle Business - R&D investment reached RMB 5 5 billion (+20 7% YoY) [1] - Xiaomi plans to achieve cumulative deliveries of 100 000 Xiaomi SU7 series vehicles by November 2024 and aims for 120 000 units for the full year [1] - The company has opened 87 car sales stores in 30 mainland Chinese cities [1] - City NOA (Navigate on Autopilot) function was launched in 10 Chinese cities with plans for nationwide rollout in August 2024 [1] Financial Forecasts - Revenue is expected to reach RMB 3330 98/3799 67/4279 69 billion in 2024/2025/2026 [1] - Net profit attributable to parent company is forecasted at RMB 177 96/202 34/247 06 billion for 2024/2025/2026 [1] - EPS is projected to be RMB 0 70/0 71/0 81/0 99 for 2023A/2024E/2025E/2026E [2][6] - P/E ratios are estimated at 25/22/18 times for 2024/2025/2026 [1][2] Strategic Outlook - The report highlights Xiaomi's "Human×Car×Home" ecosystem strategy and continuous AI layout [1] - The company is expected to benefit from smartphone industry recovery and AI-driven replacement demand [1] - Smart electric vehicle business is seen as a key growth driver for the company [1]