XIAOMI(01810) 光大证券·2024-05-26 06:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 22.80, compared to the current price of HKD 18.30 [4]. Core Insights - The company reported a record high adjusted net profit margin of 8.6% in Q1 2024, with a non-IFRS net profit of CNY 6.5 billion, representing a year-on-year growth of 100.8% [2][3]. - Revenue for Q1 2024 reached CNY 75.5 billion, a 27% increase year-on-year, driven by strong growth across its three core business segments: smartphones, IoT, and internet services [2][3]. - The company aims to deliver 120,000 units of its new electric vehicle model, SU7, in 2024, with over 88,000 pre-orders already secured [3]. Summary by Sections Financial Performance - Q1 2024 revenue was CNY 75.5 billion, with smartphone, IoT, and internet service revenues increasing by 32.9%, 21.0%, and 14.5% year-on-year, respectively [2]. - The gross margin for Q1 2024 was 22.3%, with a historical high non-IFRS net profit margin of 8.6% [2][3]. - The smartphone business generated CNY 46.5 billion in revenue, with a gross margin of 14.8%, despite a slight decline in average selling price (ASP) [2][3]. Business Segments - IoT revenue grew to CNY 20.4 billion in Q1 2024, with a gross margin of 19.9%, marking a historical high [2]. - Internet services revenue reached CNY 8 billion, with a gross margin of 74.2%, driven by a 25% increase in advertising revenue [2]. Future Outlook - The company expects smartphone gross margins to stabilize between 12-13% for the full year 2024, despite potential fluctuations during promotional periods [2]. - The IoT segment is projected to maintain a gross margin above 18% for 2024, supported by strong sales of high-margin products [2]. - The internet services segment is anticipated to benefit from an increasing global user base and enhanced monetization capabilities [2].