Key points of investment
Incident: Xiaomi Group officially released the company's first model, the Xiaomi SU7. The standard, Pro and Max versions of the SU7 are mass-produced. Prices are 215,900 yuan, 245,900 yuan, and 299,900 yuan respectively. All versions are available for reservation today. Delivery of the standard and Max versions is expected to begin at the end of April, and delivery of the Pro version is expected to begin at the end of May.
The first model has outstanding performance and is currently in high demand
The SU7 has impressive performance in terms of power, battery life, intelligence, and safety. Taking the Su7 Max as an example, the vehicle has an acceleration time of 2.78 seconds and a maximum speed of 265 km/h. Using Ningde Era 101 kWh Kirin batteries, the CLTC has a battery life of 800 km. Equipped with an 871V SiC platform, 15 minutes of supplementary energy and a battery life of 510 km. At the same time, the model uses Qualcomm 8295+ Nvidia Orin chips to support Xiaomi Pilot Max.
The SU7 is very popular. After opening the reservation, it will break 10,000 in 4 minutes, break 20,000 in 7 minutes, and reach 88,898 units in 24 hours. The appeal of the product can be seen.
“Man and Car Company” products are linked, and synergy effects can be expected
SU7 is supported by the bottom layer of Xiaomi Pengping OS, which enables two-way interconnection between cars and mobile phones, tablets, home appliances, etc., and the “human car home” closed-loop ecosystem can bring users a more comprehensive intelligent experience. At the same time, by the end of 2023, the Mijia App had 85.8 million people per month, and the number of users with 5 or more devices connected to the Xiaomi platform reached 14.5 million.
The company is expected to achieve two-way transformation of customer vehicles - equipment and equipment - vehicles based on highly intelligent cars+intelligent experience and high user volume, and provide more potential scenarios for the Internet service business. The “human vehicle” ecosystem achieves synergy effects at the two levels of user experience and sales.
Profit forecast and investment rating: We believe that the high-end strategy of the company's existing business is expected to continue to bear fruit. The synergy of the “people and car” ecosystem, short-term investment and long-term growth trends in the automobile business are expected to gradually become clear, maintaining the forecast of the company's net profit of 159/18/212 billion yuan in 2024/2025/2026. The closing price on March 29, 2024 corresponds to PE 23/20/18 times, respectively, maintaining the “buy” rating.
Risk warning: industry competition intensifies, technology iteration, product demand falls short of expectations, raw material prices rise