Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

<ul>
<li>Xiaomi reported CY1Q24 revenue, non-IFRS operating income and non-IFRS net income 2.7%, in-line, and 21.7% vs. consensus;</li>
<li>SU7 interest drove more and higher quality traffic to Xiaomi channels, driving higher revenue and margin for IoT and handset sales, in our view. </li>
<li>We expect this augmentation to sustain higher non-EV margin and growth in the long-run, and for ADAS and battery upgrades to drive demand for its next EVs. </li>
</ul>


Xiaomi reported CY1Q24 revenue, non-IFRS operating income and non-IFRS net income 2.7%, in-line, and 21.7% vs. consensus;
SU7 interest drove more and higher quality traffic to Xiaomi channels, driving higher revenue and margin for IoT and handset sales, in our view. 
We expect this augmentation to sustain higher non-EV margin and growth in the long-run, and for ADAS and battery upgrades to drive demand for its next EVs. 


[Xiaomi Inc. (1810 HK, BUY, TP HK$21) TP Change]: EV Traffic Is Augmenting Xiaomi’s Entire Business

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Xiaomi’s 1Q24 revenue/net profit growth of 27%/101% YoY beat our/consensus estimates, mainly driven by a stronger GPM, improving revenue mix and better finance incomes.</li><li>Looking ahead, Xiaomi reiterated its positive view on smartphone global share gains, new retail strategy execution and EV shipment deliveries, and mgmt. guided to target 120k annual EV deliveries (vs 100k prior guidance).</li><li>We believe Xiaomi’s share gain momentum, AIoT sales strength and overseas internet revenue will continue to drive earnings growth into FY24E25E. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xiaomi’s 1Q24 revenue/net profit growth of 27%/101% YoY beat our/consensus estimates, mainly driven by a stronger GPM, improving revenue mix and better finance incomes.Looking ahead, Xiaomi reiterated its positive view on smartphone global share gains, new retail strategy execution and EV shipment deliveries, and mgmt. guided to target 120k annual EV deliveries (vs 100k prior guidance).We believe Xiaomi’s share gain momentum, AIoT sales strength and overseas internet revenue will continue to drive earnings growth into FY24E25E. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xiaomi (1810 HK) - 1Q24 Beat on Strong Margins; Positive on Upbeat SU7 Delivery Target

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>Total revenue growth rate climbed up 27% YoY in 1Q24 with all businesses growing strongly.</li>
<li>Smartphone shipments grew by 34% YoY and achieved global No. 3.</li>
<li>In 1Q24, the gross margins of all major businesses obviously improved.</li>
</ul>


Total revenue growth rate climbed up 27% YoY in 1Q24 with all businesses growing strongly.
Smartphone shipments grew by 34% YoY and achieved global No. 3.
In 1Q24, the gross margins of all major businesses obviously improved.


XM / Xiaomi (1810 HK): 1Q24, Revenue Up by 27%, Smartphone Shipments Ranked Global No. 3

<ul><li>Xiaomi will report 1Q24 results in late May. We estimate 1Q revenue/adj. net profit to deliver 26%/67% YoY growth to RMB75.2bn/5.4bn, 5%/19% above consensus, backed by strong smartphone shipments, better GPM across all segments and prudent expense controls.</li><li>Looking ahead, we believe Xiaomi’s global smartphone share gain will continue in LATAM/EMEA/SEA/EU markets backed by multiple product launches in 2H24E, and margin shall remain resilient given rising BOM costs are offset by premiumization and an improving mix.</li><li>Overall, we are positive on the strong momentum of Xiaomi’s smart EV business and resilient core segments. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xiaomi will report 1Q24 results in late May. We estimate 1Q revenue/adj. net profit to deliver 26%/67% YoY growth to RMB75.2bn/5.4bn, 5%/19% above consensus, backed by strong smartphone shipments, better GPM across all segments and prudent expense controls.Looking ahead, we believe Xiaomi’s global smartphone share gain will continue in LATAM/EMEA/SEA/EU markets backed by multiple product launches in 2H24E, and margin shall remain resilient given rising BOM costs are offset by premiumization and an improving mix.Overall, we are positive on the strong momentum of Xiaomi’s smart EV business and resilient core segments. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xiaomi (1810 HK) - 1Q24E Preview: Expect Strong Earnings Ahead; Raise TP to HK$23.77

<ul>
<li>Performance of SU7 so far, margin of EV biz and globalization potential prompted us to take another look at Xiaomi and we like what we saw;</li>
<li>Xiaomi surprised during the Investor Day by guiding SU7 gross margin of 5-10%. Delivery guidance also surprised to ship 100k units in 2024. </li>
<li>We raise EV profitability estimates on margin guidance and expect market share to expand as it expands to SUVs.</li>
</ul>


Performance of SU7 so far, margin of EV biz and globalization potential prompted us to take another look at Xiaomi and we like what we saw;
Xiaomi surprised during the Investor Day by guiding SU7 gross margin of 5-10%. Delivery guidance also surprised to ship 100k units in 2024. 
We raise EV profitability estimates on margin guidance and expect market share to expand as it expands to SUVs.


[Xiaomi (1810 HK, BUY, TP HK$20) Rating Change]: Xiaomi EV Came at the Right Time of Consolidation

China

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

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Xiaomi Corp (1810 HK)

[Xiaomi Inc. (1810 HK, BUY, TP HK$21) TP Change]: EV Traffic Is Augmenting Xiaomi’s Entire Business

Xiaomi's strong revenue and income results in Q1 driven by increased traffic from SU7 interest, expected to sustain higher margins and growth in...

Blue Lotus Research Institute

Xiaomi (1810 HK) - 1Q24 Beat on Strong Margins; Positive on Upbeat SU7 Delivery Target

Xiaomi’s 1Q24 revenue/net profit growth of 27%/101% YoY beat our/consensus estimates, mainly driven by a stronger GPM, improving revenue mix and...

CMB International

XM / Xiaomi (1810 HK): 1Q24, Revenue Up by 27%, Smartphone Shipments Ranked Global No. 3

Total revenue growth rate climbed up 27% YoY in 1Q24. Smartphone shipments grew by 34% YoY and achieved global No. 3. In 1Q24, the gross margins of...

Ming Lu

Xiaomi (1810 HK) - 1Q24E Preview: Expect Strong Earnings Ahead; Raise TP to HK$23.77

We estimate 1Q revenue/adj. net profit to deliver 26%/67% YoY growth to RMB75.2bn/5.4bn, 5%/19% above consensus, backed by strong smartphone shipments

CMB International

[Xiaomi (1810 HK, BUY, TP HK$20) Rating Change]: Xiaomi EV Came at the Right Time of Consolidation

Xiaomi surprised during the Investor Day by guiding SU7 gross margin of 5-10%. Delivery guidance also surprised to ship 100k units in 2024.

Blue Lotus Research Institute

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52-week Range

Market Cap (USDm)

P/E

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[Xiaomi Inc. (1810 HK, BUY, TP HK$21) TP Change]: EV Traffic Is Augmenting Xiaomi’s Entire Business

​Xiaomi's strong revenue and income results in Q1 driven by increased traffic from SU7 interest, expected to sustain higher margins and growth in...

Blue Lotus Research Institute

Xiaomi (1810 HK) - 1Q24 Beat on Strong Margins; Positive on Upbeat SU7 Delivery Target

Xiaomi’s 1Q24 revenue/net profit growth of 27%/101% YoY beat our/consensus estimates, mainly driven by a stronger GPM, improving revenue mix and...

CMB International

XM / Xiaomi (1810 HK): 1Q24, Revenue Up by 27%, Smartphone Shipments Ranked Global No. 3

Total revenue growth rate climbed up 27% YoY in 1Q24. Smartphone shipments grew by 34% YoY and achieved global No. 3. In 1Q24, the gross margins of...

Ming Lu

Xiaomi (1810 HK) - 1Q24E Preview: Expect Strong Earnings Ahead; Raise TP to HK$23.77

We estimate 1Q revenue/adj. net profit to deliver 26%/67% YoY growth to RMB75.2bn/5.4bn, 5%/19% above consensus, backed by strong smartphone shipments

CMB International

[Xiaomi (1810 HK, BUY, TP HK$20) Rating Change]: Xiaomi EV Came at the Right Time of Consolidation

Xiaomi surprised during the Investor Day by guiding SU7 gross margin of 5-10%. Delivery guidance also surprised to ship 100k units in 2024.

Blue Lotus Research Institute

Xiaomi's strong revenue and income results in Q1 driven by increased traffic from SU7 interest, expected to sustain higher margins and growth in...