Goldman Sachs: Assigns Xiaomi Corporation-W a Buy rating with a target price of HKD 35

Goldman Sachs released a research report stating that Xiaomi Corporation-W is building a world model for testing autonomous driving/advanced driver assistance systems (AD/ADAS) algorithms, which is expected to be applied to algorithm training in the future. Through the world model, virtual AI drivers can learn to drive through practice rather than the traditional method of mimicking human drivers. Management believes this is a better and more efficient way to train algorithms. It has a "Buy" rating with a 12-month target price of HKD 35. The Xiaomi SU7 Max version hardware has supported L3-level autonomous driving functions, which can be enabled after a software update, ahead of China's plan to enforce L3 standards in 2026. Management stated that Xiaomi has independently developed Occupancy Network technology, which can be used for 3D object recognition and motion prediction, and is superior to the industry average