1、18 June 2025Asian AutosXiaomi CorpRatingOutperformPrice Target1810.HK60.00HKDEunice Lee,CFA+852 2123 Mika Fu+852 2166 Frankie Fong+852 2123 Reported EPSF24AF25EF26E1810.HK(CNY)0.951.732.08FinancialsF24AF25EF26ECAGRRevenues(M)365,906503,563617,98430.0%Gross Profit(M)76,560117,490145,13137.7%Operating

2、 Earnings(M)24,50350,86861,44258.4%Net Earnings(M)23,57842,76751,55447.9%Valuation MetricsF24AF25EF26EReported P/E(x)51.728.523.6EV/Sales(x)3.02.11.7EV/FCF(x)33.823.316.1EV/EBIT(x)50.223.017.9Source:Bloomberg,Bernstein estimates and analysis.Xiaomi:Decoding Xiaomi EVs Success Product,Marketing,Brand

3、,and EcosystemXiaomis first EV,the SU7,has achieved remarkable success and within just one year,theSU7 has become the best-selling sedan with a starting price exceeding RMB 200k,across allpowertrain options,in China.Even after 15 months on the market,the SU7 maintains an orderbacklog of over 40 week

4、s.We think the success of Xiaomi SU7 can be attributed to four keyfactors:product competitiveness,marketing strategy,brand power,and ecosystem integration.A competitive product that combines style with an exceptional value proposition.SU7 features a stylish and attractive exterior,with a spacious an

5、d plush interior equippedwith details and gadgets.SU7 also provides a 700km long driving range,and exceptionaldriving experience,according to users,all with a starting price from RMB 216k.Marketingsavviness gives fuel to momentum.Xiaomi capitalized on its smartphone sales experienceto create impactf

6、ul marketing campaigns,effectively using social media to generate buzz andengage potential customers.CEO Lei Jun acts as a strong brand ambassador,enhancing theconnection between Xiaomi and its followers.Leveraging the power of Xiaomis brand insmartphone&IoT.As a well-established name in consumer el