Golden Guard Financial News | Haitong Securities issued a research report, stating that Xiaomi Group (01810) officially launched the Xiaomi SU7 series of smart electric cars on March 28, 24. In Q2 24, the company's innovative smart electric car business revenue was 6.4 billion yuan, with a gross margin of 15.4%. Among them, the revenue from smart electric cars was 6.2 billion yuan, while revenue from other related businesses was 0.2 billion yuan. In Q2 24, Xiaomi delivered 0.0274 million new cars of the Xiaomi SU7 series. The Xiaomi automobile plant started double-shift production in June this year to continuously expand capacity, with the goal of achieving an early completion of the cumulative delivery target of 0.1 million SU7 series cars by November this year and striving to achieve a new target of 0.12 million cars by the end of 24.
The bank continued to point out that in H1 24, global smart phone shipments reached 82.8 million units, an increase of +30.8% year-on-year, ranking third with a market share of +2.1 percentage points to 14.2% year-on-year. The revenue was 93 billion yuan, up +29.9% year-on-year, with a gross margin increasing by +1.18 percentage points to 13.5% year-on-year. The proportion of high-end mobile phone shipments increased by +1.7 percentage points to 21.9% year-on-year. IoT and consumer lifestyle business revenue was 47.1 billion yuan, up +20.6% year-on-year, reaching a historical high. The gross margin increased by +3 percentage points to 19.8% year-on-year. Smart large appliances business revenue increased by +40.5% year-on-year. Tablets ranked fifth in global shipments, while wearable wristband devices ranked second globally. Internet-related business revenue was 16.3 billion yuan, up +12.7% year-on-year, reaching a historical high. The gross margin increased by +3.1 percentage points to 76.3% year-on-year.
The bank stated that the net income of Xiaomi Group's three traditional businesses (smartphones, IoT, and internet-related businesses) excluding the automobile business in 24E was 19.212 billion yuan. Taking into account the average PE ratio of comparable companies in Xiaomi's traditional businesses and the high valuation in the smartphone industry, along with Xiaomi Group's fast growth in the lot, the bank gave this business a PE ratio range of 22-26 times for 24E. The operating income of the automobile business in 24E was 25.85 billion yuan. By using the average PS ratio of leading domestic electric vehicle companies as comparable companies, the bank assigned a PS ratio of 2.5 times for 24E. Considering Xiaomi Group's total external investment of 67.1 billion yuan, the bank predicted a market value range of 613.33-698.348 billion Hong Kong dollars for Xiaomi Group, corresponding to a reasonable value range of 24.58-27.98 Hong Kong dollars, and initiated coverage with an "outperform the market" rating.
