A research report maintains XIAOMI-W's (01810) revenue forecasts for FY2025E-FY2027E at RMB 489.1/641.8/758.4 billion respectively, and keeps adjusted net profit projections at RMB 45.4/68.1/83.6 billion. With stable automotive deliveries, sustained competitive advantages in major home appliances, and potential catalysts from new smartphone launches, the target price of HK$77.5 and "Buy" rating are maintained.

**Key Investment Points:**

**Automotive Deliveries Exceed 30,000 Units in July and August, Supporting Full-Year Target of 350,000 Units**

XIAOMI's automotive division delivered over 30,000 units in both July and August, primarily driven by increased production capacity at the Phase 1 factory. Given that both Yu7 and Su7 models are built on the Modena platform, leveraging accumulated supply chain experience, production line expertise, and component reusability from Phase 1, the Phase 2 factory is expected to ramp up production faster than Phase 1. This supports confidence in XIAOMI achieving and potentially exceeding its 2025 full-year delivery target of 350,000 units.

**Air Conditioner Business Rapidly Scales While Improving Product Mix, Wuhan Factory to Strengthen Major Appliance Competitiveness**

XIAOMI's air conditioner shipments exceeded 5.4 million units in Q2 2025, representing 60% year-over-year growth and marking the third consecutive quarter with growth rates exceeding 50%. As the most important category within XIAOMI's major appliance portfolio, air conditioners will continue pursuing premiumization strategies, narrowing price gaps with leading brands while continuously improving product mix. The upcoming launch of the Wuhan major appliance factory will address production capacity constraints, and combined with XIAOMI's new retail channel advantages, this reinforces the company's competitive position in major appliances.

**New Smartphone Launches Present Significant Future Catalysts**

The upcoming XIAOMI 17 Pro and Pro Max models feature a rear display that allows customizable content including clock themes, personalized patterns, car controls, and rear camera selfie assistance. Following the official announcement of the XIAOMI 17 series, pre-order deposits at XIAOMI stores doubled compared to the previous generation. With subsequent launches of new XIAOMI and Redmi series products, Q4 smartphone revenue and gross margin performance are expected to show marginal improvement.

**Risk Factors:** Automotive sales below expectations; intensified competition risks; AI development progress below expectations; geopolitical and regulatory policy risks.