Source: Securities Times
The first batch of Xiaomi SU7 was officially delivered.
On the morning of April 3rd,$XIAOMI-W (01810.HK)$The delivery ceremony for the first batch of SU7 was held at the assembly workshop of the Xiaomi car factory in Yizhuang, Beijing. Lei Jun, founder, chairman and CEO of Xiaomi Group, attended the ceremony and personally delivered cars to the first batch of car owners. Delivery centers in 28 cities across the country also simultaneously began the first batch of deliveries.
Lei Jun revealed at the first delivery ceremony at the Xiaomi Auto Factory Store in Beijing that at present, the Xiaomi SU7 has already exceeded 100,000, and the number of locked orders has exceeded 40,000.
At the same time, Lei Jun thanked the first batch of Xiaomi SU7 owners, saying that they must make good products, good quality, and good service to live up to everyone's trust.
Earlier this morning, Xiaomi Chairman and CEO Lei Jun posted a Weibo saying that the rhetoric of three years ago has become reality. “Starting today, Xiaomi has officially become a car manufacturer. Should everyone call me Director Lei?”
On March 28, the Xiaomi SU7 was officially launched. According to data released by Xiaomi Auto, the Xiaomi SU7 will be 88,898 units within 24 hours of launch. However, “big” orders for Xiaomi cars can be refunded within 7 days if the consumer does not lock the car. Orders are automatically locked after 7 days and are non-refundable. Xiaomi Auto previously revealed that as of 12 noon on March 29, the Xiaomi customer service system had received a total of 469 requests for chargebacks and modifications.
Yesterday, Xiaomi Auto also once again responded to the order situation. According to Xiaomi Auto, we are currently in a state of explosion, and we continue to add new locked orders every day.
The popularity of Xiaomi cars has also drawn a lot of attention from international investment banks.
Goldman Sachs released a research report on Monday to raise the target share price of the Xiaomi Group from HK$18.9 to HK$20. Goldman Sachs said that since its debut, the number of pre-orders for the Xiaomi SU7 has broken industry records, reaching 89,000 units within 24 hours of initial launch. Not only is this impressive figure, but the distribution of orders for the three editions is balanced, showing that the potential in terms of sales volume and average selling price exceeded expectations. In view of the success of SU7, Goldman Sachs raised the revenue forecast for the Xiaomi Group for 2024 to 2026, which is expected to increase by 2% to 6%.
Goldman Sachs said that with its industry-leading intelligent system and ecological advantages, the Xiaomi SU7 has shown the potential to become one of the best-selling high-end electric sedans in China. Currently, this market includes the Tesla Model 3. Goldman Sachs expects the SU7 to become one of the top three best-selling high-end sedan models in China, with an average monthly sales volume of over 10,000 units and an average retail price of 250,000 yuan. Goldman Sachs also anticipates that Xiaomi will be profitable in 2028.
Investment bank J.P. Morgan Chase also pointed out in the research report that the pricing of the Xiaomi SU7 is very attractive and has an advantage in scale. J.P. Morgan believes that Xiaomi's electric vehicle business has had a strong start and may exceed market expectations of about 50,000 units in the first 12 months, trigger a strong positive reaction from stock prices in the short to medium term, and continue to maintain Xiaomi's “overrated” rating. The target price is HK$21.
J.P. Morgan said that although Xiaomi's electric vehicle business will lose money in the first few years, Xiaomi's overall financial situation is good, and there is plenty of cash on Xiaomi's balance sheet, which can provide sufficient financial support for the electric vehicle business.
However, after surging nearly 9% yesterday, the Xiaomi Group's stock price fell rapidly after opening today. As of press release, it fell 3.32% to HK$15.74.
Nomura previously lowered the Xiaomi Group's target price to HK$17. According to a report published by Nomura, the Xiaomi Group's electric vehicle model SU7 has exceeded expectations; the company's electric vehicle market share is expected to grow rapidly; and factors such as the company's ability to integrate its ecosystem through HyperOS and become a strong competitor to Huawei, all have opportunities to respond positively to Xiaomi's stock price in the short term. However, at the same time, the electric vehicle market is facing a decline in valuation. Coupled with weak electric vehicle market sentiment, there is still uncertainty, which may have an impact on Xiaomi's business performance. As a result, Nomura lowered the target price for Xiaomi from HK$18.6 to HK$17, giving it a neutral rating.
editor/tolk