招银国际:维持小米集团-W(01810)“买入”评级 目标价上调至25.39港元

CMB International: Maintaining Xiaomi Group-W (01810) “Buy” Rating and Raising the Target Price to HK$25.39

Zhitong Finance ·  May 24 10:21

The management of the Xiaomi Group raised the target delivery volume of the Xiaomi SU7EV to 120,000 units for the whole year of 2024.

The Zhitong Finance App learned that CMB International released a research report stating that maintaining the Xiaomi Group (01810) “buy” rating, believing that the increase in the global market share of Xiaomi phones and the continued strong AIoT and overseas internet business will drive the company's growth in FY24-25. The FY24-26EEPS forecast was raised by 12%-16% to reflect strong 1Q24 performance, and the target price was raised to HK$25.39.

According to the report, the Xiaomi Group announced 1Q24 results that exceeded expectations. 1Q24 revenue reached 75.5 billion yuan, up 27.0% year on year; adjusted net profit of 6.5 billion yuan, up 100.8% year on year, exceeding market expectations by 27%. The comprehensive gross profit margin was 22.3%. The gross margin and adjusted net profit performance surpassed the bank's and market expectations, mainly due to strong gross margin performance of various business divisions, product portfolio optimization, and higher financial revenue. At the performance meeting, management reiterated their positive views on the continued increase in the market share of Xiaomi phones, the further expansion of the new retail strategy, and the accelerated delivery of the Xiaomi EVSU7 series.

In terms of Xiaomi phones, the core business, 1Q24 shipments increased 33.7% year over year. In terms of revenue by business line, the revenue of the mobile phone/AIoT/Internet business sector increased by 32.9%/21.0%/14.5% year-on-year, respectively, mainly due to strong sales of Xiaomi phones, tablets, TWS wearable products and major appliances during the quarter, as well as the increase in the number of Xiaomi global users, which increased the ability of overseas Internet businesses to monetize. The overall gross margin reached 22.3% this quarter, and the gross margin performance of mobile phones was resilient. The gross margin of the AIoT business reached a record high of 19.9%, mainly benefiting from the increase in revenue contributions from high-margin products such as tablets and major appliances.

In terms of the EV business, the management raised the target delivery volume of the Xiaomi SU7EV to 120,000 units in 2024, and hopes to complete the monthly delivery of 10,000 units in June. Currently, the Xiaomi car factory has completed the transformation and can achieve double shift production. In addition, the company will relaunch a new retail expansion strategy this year. In the three years 2024-26, the company will expand 10,000 more Xiaomi Home stores in China, complete the expansion of the area and optimal location selection, so that Xiaomi Home can better present “human-car-home” products in the entire ecosystem; it also plans to expand new retail overseas, replicate the mainland China model, and accelerate sales growth of overseas non-mobile phone products.

The translation is provided by third-party software.

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