Cathay Securities and Haitong Securities: Raise the target price of Xiaomi Corporation-W to HKD 77.7, YU7 order data has surprises
CITIC Securities released a research report stating that after Xiaomi Corporation-W launched the new model YU7, the order volume exceeded 200,000 units within 3 minutes, and reached 289,000 units in the first hour of sales. After 18 hours of sales, the locked order volume for YU7 surpassed 240,000 units, a figure that surprised the market and reflects strong consumer purchasing intent. The firm raised its revenue forecast for Xiaomi to RMB 486.1 billion, 631.1 billion, and 756.9 billion, respectively, and adjusted its net profit forecast to RMB 44.1 billion, 58.4 billion, and 72.8 billion. The target price for the company was raised to HKD 77.7, maintaining a "Buy" rating. The report mentioned that Xiaomi's second-phase factory successfully completed planning acceptance on April 22 and is scheduled to start production in July and August as planned. After production begins, the two-phase factory will provide a total rated annual capacity of 300,000 vehicles. Xiaomi also launched AI glasses, expecting that the experience from the consumer electronics supply chain can be reused for the AI glasses. At the same time, the AI glasses, as one of the next-generation edge AI entry points, are expected to connect Xiaomi's ecosystem of people, vehicles, and homes, which is of great strategic significance
According to the Zhitong Finance APP, Guotai Junan released a research report stating that after Xiaomi Corporation-W (01810) launched the new model YU7, the order volume exceeded 200,000 units within 3 minutes of sale, and 289,000 units were booked in the first hour. After 18 hours of sales, the locked order volume for YU7 surpassed 240,000 units, a figure that surprised the market and reflects strong consumer willingness to spend. The firm raised its revenue forecast for Xiaomi to RMB 486.1 billion, 631.1 billion, and 756.9 billion, respectively, and adjusted net profit forecasts to RMB 44.1 billion, 58.4 billion, and 72.8 billion, respectively, while increasing the company's target price to HKD 77.7, maintaining an "Overweight" rating.
The report mentioned that Xiaomi's second-phase factory successfully completed planning acceptance on April 22 and is scheduled to start production in July and August as planned. After production begins, the two-phase factories will provide a total rated annual capacity of 300,000 units. Xiaomi also launched AI glasses, expecting that the experience from the consumer electronics supply chain can be reused for the AI glasses. At the same time, as one of the next-generation edge AI entry points, the AI glasses are expected to connect Xiaomi's ecosystem of people, vehicles, and homes, which is of great strategic significance
