XIAOMI(01810) 东吴证券·2024-03-21 16:00Investment Rating - The investment rating for Xiaomi Group-W (01810.HK) is "Buy" (maintained) [1] Core Views - Xiaomi Group reported its 2023 annual performance, achieving revenue of 271 billion RMB, a year-on-year decrease of 3%, while adjusted net profit reached 19.3 billion RMB, a year-on-year increase of 126% [3] - The company exceeded market consensus expectations, with Q4 2023 revenue of 73.2 billion RMB, a year-on-year increase of 11%, and adjusted net profit of 4.9 billion RMB, a year-on-year increase of 236% [3] Summary by Relevant Sections Revenue and Profit Forecast - Total revenue for 2023 was 270.97 billion RMB, with a year-on-year decline of 3.24%. The forecast for 2024 is 310.78 billion RMB, representing a growth of 14.69% [2] - The net profit attributable to shareholders for 2023 was 17.48 billion RMB, a significant increase of 606.34% year-on-year, with projections of 15.94 billion RMB for 2024, reflecting a decrease of 8.79% [2] Mobile Business Performance - The mobile segment generated 157.5 billion RMB in revenue for 2023, down 6% year-on-year, but gross profit increased by 54% to 23 billion RMB, with a gross margin of 15.5%, marking a historical high [4] - The average selling price (ASP) of products in mainland China increased by over 19% year-on-year, despite a 2.7% decline in overall ASP to 1,082 RMB [4] IoT and Internet Services - The IoT business generated 80.1 billion RMB in revenue, a slight increase of 0.4% year-on-year, with a gross margin of 16.3%, also a historical high [5] - Internet services revenue reached 30.1 billion RMB, up 6% year-on-year, with a gross margin of 74.2% [5] Profitability and Future Outlook - The adjusted net profit forecasts for 2024 and 2025 have been raised to 15.9 billion RMB and 18.9 billion RMB, respectively, with a projected net profit of 21.2 billion RMB for 2026 [5] - The report anticipates that the upcoming EV model SU7 will achieve rapid delivery, contributing to the "people, car, home" ecosystem and clarifying the short-term investments and long-term growth trajectory of the automotive business [5]