CITIC Securities: Xiaomi YU7's large order quantity exceeds expectations, target price raised to 76.9 yuan

CICC published a report stating that the large order quantity of Xiaomi (01810.HK) YU7 exceeded expectations, and the launch of the first AI glasses and other new products is expected to continue to boost brand momentum. Looking ahead, the report is optimistic about Xiaomi's adherence to the four core strategies of "scale ecology + technology hardening + brand elevation + market globalization." In the future, with the continuous optimization and integration of the "people, vehicles, and home ecosystem" at the user level and underlying systems, its important entry position in various hardware fields such as smartphones, automobiles, IoT, AI glasses, and robotics may further stand out.

Considering the unexpected large orders for Xiaomi YU7, the adjusted net profit for this year and next year has been raised by 2% and 17% to RMB 49.048 billion and RMB 66.384 billion, respectively. The current stock price corresponds to an adjusted net profit price-to-earnings ratio of 28 times and 20.4 times for this year and next year. The rating is maintained at "outperform the industry," with the target price raised by 9.9% to HKD 76.9