Jinwu Financial News | China Merchants released a Research Report indicating that Xiaomi Group (01810) has impressive performance across its IoT, Autos, and Smart Phone businesses; the layout in AI-related fields and global development are continuously advancing. It is expected that in the future, Xiaomi will deepen the integration of AI technology across multiple terminals such as Smart Phones, IoT, and Autos, comprehensively enhancing the user experience across its entire ecosystem.

The firm noted that as a leading global Smart Phone brand, the company is actively promoting a high-end Global Strategy and international expansion, expecting a year-on-year increase of 43% in high-end Smart Phone sales in 2024; the large appliance business is entering a new phase of growth with vast potential; the Internet Plus-Related business is likely to continue stable growth; the Autos business gross margin continues to exceed expectations, and it is anticipated that the company will successfully complete all annual goals for deliveries, intelligent driving technology, and sales networks in 2024, coupled with the continuous improvement of the follow-up vehicle matrix and synergies in the ecosystem, the company is expected to rank among the top tier of domestic new forces, striving to enter the top five global automakers by 2015-2020.

The firm predicts that the company’s total revenue for 2024/25/26 will be 356.7/462.4/565.3 billion yuan, with net income attributable to shareholders at 20/30.6/38 billion yuan, and the current Market Cap corresponds to a PE ratio of 38.9/25.4/20.5 times; adjusted net profits are expected to be 24.7/34.6/42 billion yuan, with the current Market Cap corresponding to a PE ratio of 31.6/22.5/18.5 times. The rating is maintained at "Strong Buy", remaining bullish on the company’s mid-to-long-term Market Cap growth potential.