2025-05-26-Bernstein-小米集团（1810）_小米第一季度_强劲表现——全面发力_利润率显著提升；重申跑赢大盘_17页_456kb

Xiaomi Corp (1810.HK) posted strong Q1 2025 financial results, with revenue of RMB 111.3 billion, representing a 47.4% year-over-year increase and a 2.1% quarter-over-quarter gain. The gross margin hit a record 22.8%, up from 22.3% in Q1 2024, driven by improved operational leverage and higher-margin segments. Net income also exceeded expectations, reaching RMB 10.9 billion and a 161% YoY growth.

Key segment performances include smartphone shipments of 44.2 million units, with China contributing +40% YoY growth and a market share of 18.8%. IoT and lifestyle products grew at 58.7% YoY, while Internet services saw a 12.8% increase, supported by advertising revenue. EV sales increased by 8.5% QoQ, with a gross margin expansion.

The company maintains an Outperform rating and a HK$55 price target, citing strong margins, R&D investments, and growth catalysts like the upcoming Investor Day. Management stresses shifting focus to premium smartphones and AI initiatives.

However, risks include slowing smartphone market growth, intense competition, and macroeconomic uncertainties. Overall, Xiaomi's disciplined strategy and product strengths position it for sustained growth, reinforcing its investment thesis.