Citigroup released a research report reiterating the 'Buy' rating for XIAOMI-W (01810), with a Target Price of HKD 34.9. Future main catalysts include increased Orders for the SU7 Ultra electric vehicle, the launch of new Smart Driving systems, potential mobile phone subsidy policies, and the introduction of the YU7 electric vehicle.
The report states that XIAOMI-W held a vehicle-home ecosystem partner conference in Peking last Friday (27th), reiterating its R&D expenditures for this and next year to be 24 billion and 30 billion yuan respectively, estimating R&D spending of over 100 billion yuan from 2022 to 2026, mainly focused on AI, operating systems, and chip development.
The company also expects Smart Phone deliveries to reach 0.17 billion units this year, a year-on-year increase of 16%, which is in line with expectations, with high-end Smart Phone deliveries anticipated to rise 43% year-on-year to 1.2 million units. The company aims to increase sales of high-end Smart Phones by 1 million units every three to five years, reaching 3 million units in seven to eight years. The company has also launched a comprehensive ecosystem developer incentive program and disclosed that SU7 electric vehicle deliveries have exceeded 0.13 million units, compared to the forecasted 0.131 million units. Currently, the company has opened 200 electric vehicle stores in 58 cities.
