新品发布会要点：YU7、AI眼镜、MIX Flip 2

Launch eventtakeaways: YU7, AI Glasses, MIX Flip 2 Target PriceHK$65.91Up/Downside15.8%Current PriceHK$56.90 Xiaomihostedits “HumanxCarxHome”ecosystem launch eventon 26 Jun,and officiallyunveiledthreekey products:Xiaomi YU7, foldable phone MIX Flip2,andXiaomi AI glasses.WebelieveYU7’s startingpriceof RMB 253.5k islargely inline,andYU7’s 289kpreorderswithin first hour is well ahead of SU7’s89k preorders within first 24 hours in Mar 2024.We are also positiveaboutXiaomi’sfirst AI glassesfeaturing12MPcamera, long battery life and built-inHyper AI, and we expectitsstartingpriceat RMB1,999will gain strong traction.Overall,we believe YU7 marks a significant expansion in Xiaomi’s autoambition, and MIX Flip 2 and AI Glasses show impressiveexecution in premiumconsumer tech.We reiterate BUY forXiaomi’spremiumizationstrategy,newretailchannels, IoT overseas expansionand smart EV momentum.CatalystsincludeYU7 sales ramp-up,AIoT monetization and overseas channelexpansion. Alex NG(852) 3900 0881alexng@cmbi.com.hk Hanqing LIlihanqing@cmbi.com.hk XiaomiYU7:RMB253.5k startingpricelargely inline; 289Kpreordersin the first hour exceededexpectations.Mgmt.highlightedthatall threeYU7models (Standard/Pro/Max) are equipped withan extended range.Inparticular, 835kmrange (Standard) and 3.23s 0-100 km/h (Max) place YU7among top-tier electric SUVs.Startingprices of standard/Pro/MaxmodelsareRMB 253.5k/279.9k/329.9kare largely in-line, and are well-positionedto capture premium SUC demand, competing with RMB250-350k pricebrands, such as Tesla model Y, Li L seriesandAITO M7. We expectthatthemarket will react positively to YU7’s289k preorders within the first hour,and we see further upside to our estimate of 360kEVshipment in FY25E.Xiaomi’s firstAIGlasses:stepping into next-gen personal AI.Xiaomi debuted its long-anticipatedAI glasses, featuringa D-shapedframedesign,12MPcamera and Qualcomm’s AR1 SoC, powered by its own HyperAILLM. Xiaomi AI glasses have a 64% increase in battery capacity comparedtoMetaAI glasses.Integration of XiaoAI AI assistant enables real-timetranslation, AI summarization and IoT control.We believethepricerange ofRMB 1,999-2,999islargely in line with marketexpectations, and Xiaomi’sexpansion into AI glass market will strengthen its AI ecosystem strategy.Otherhighlights:MIX Flip 2, Pad 7S Pro 12.5, K80, Smart Band 10. Xiaomi released 2nd-gen foldable smartphone MIX Flip 2, REDMI K80, Pad7S Pro 12.5, Watch S4 41mm, Smart Band 10, and open earphones Pro.For smart home, Xiaomi also launched high-speed hair dryer Pro, Vacuum-Mop M40 S, wireless floor scrubber 4 Max, and Mi home airconditioner Pro.Reiterate BUY with TP of HK$65.91. Related reports: 1.Key takeaways from XiaomiInvestor Day 2025–3 Jun 2025(link)2.1Q25 strong beat; Positive onpremiumization, YU7 ramp and SoCbreakthrough in 2H25E–28 May2025(link)3.Keytakeaways from product launchevent: Self-developed 3nm SoCdebut is the bright spot–23 May2025(link)4.1Q25 Preview: Expect strongresults ahead; regained No.1 inChina amid Appleweakness–2May 2025 (link)5.Placement confirmed for globalbusiness expansion–25 Mar 2025(link) Focus Charts Source:Company data, CMBIGM Source:Company data, CMBIGM Source:Companydata,CMBIGM Source:Company data, CMBIGM Source:Company data, CMBIGM Source:Company data, CMBIGM Revenue breakdown Valuation Maintain BUY withSOTP-based TP ofHK$65.91 We derive our TP of HK$65.91based on the SOTP methodology in order to reflect differentgrowth profiles of Xiaomi’s various businesses. We assign 26x/26x/25x FY25E P/E to itssmartphone/AIoT/Internetbusinesses,which we think are justified given Xiaomi’saccelerated share gains in smartphone/IoT market, overseas expansion of its ecosystem,improving profitability across smartphone/AIoT/internet segments and sector re-rating foredge AI upcycle. For EV business, we assign 2.0x FY26E P/S. In addition, we believe ourimplied target multiple of 37.7x FY25E P/E is justified, when compared to 1) valuation of34x FY25E P/E for global industry leader, Apple, and 2) valuation of 31.2x P/E for its 1-sdabove6-year historical forward P/E,given upcoming product upcycles for its AIsmartphone,IoT overseas expansion and EV product launches in 2025.Upcomingcatalysts include SUVYU7 sales ramp-up, smartphone/AIoT share gains, overseas storeexpansion and EV order/delivery/profitability updates. Source: Bloomberg, CMBIGM Source: Bloomberg, CMBIGM Disclosures& Disclaimers Analyst CertificationThe researchanalyst who is primary responsible for the content of this research report, in whole or in part, certifies that with respectto the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neitherthe analys