Jingu Finance News | CICC released a research report stating that Xiaomi Group (01810) had a 3Q24 revenue of 92.5 billion RMB (RMB, hereinafter; YoY +30.5%, QoQ +4.1%), higher than Factset's consensus of 91.2 billion RMB. The net income was 5.34 billion RMB (YoY +9.7%, QoQ +5.3%), higher than Factset's consensus of 4.846 billion RMB, with Non-IFRS net income of 6.252 billion RMB (YoY +4.4%, QoQ +1.2%), exceeding Factset's consensus of 5.961 billion RMB, including a Non-IFRS net loss of 1.5 billion RMB for innovative businesses such as smart electric autos.

The bank stated that the company's smart phone business had 3Q24 revenue of 47.452 billion RMB (YoY +13.9%, QoQ +2.0%), with a gross margin of 11.7% (YoY -4.9pcts, QoQ -0.4pct). The 3Q24 smart phone shipments were 43.1 million units (YoY +3.1%), with an average price of 1102.2 RMB (YoY +10.6%), benefiting from the increase in the proportion of high-end phone shipments. The company raised prices in response to material price increases for its flagship new phones. According to TechWeb, the company's vice president stated that the flagship new phone achieved a sales volume of one million units faster than the previous generation, with the Pro version growing faster than the standard version. The bank believes that this performance reflects the company's steady progress in its high-end global strategies. As for the full-year outlook, the company estimates that the annual phone shipments will reach 0.17 billion units.

The bank maintains an optimistic outlook on the company's high-end smart phone strategy, while also expecting IoT and autos to become strong growth drivers for the company. The company is expected to have revenues of 355.7/438.9/515.8 billion RMB for the years 2024-2026 respectively, with net income attributable to parent company expected to be 19.9/28.1/32.1 billion RMB. The bank maintains a 'buy' rating.