News summary
Xiaomi Q1 revenue and net profit exceeded expectationsplayfreestrippoker, the progress of the automobile business attracts attentionplayfreestrippoker, stock prices rose 38.8 percent in nearly 60 daysplayfreestrippoker.43%。Vehicle deliveries exceeded 10,000 units, and the target sales network will cover 46 cities and 219 stores in 2024. It is estimated that car shipments will exceed 100,000 units in 2024, with a gross profit margin of 5%-10%.
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Xiaomi's first-quarter earnings report was outstanding, and its automobile business became the focus of the market
Xiaomi Group (1810playfreestrippoker.HK)'s latest financial report shows that the company's quarterly revenue achieved significant growth, reaching 75.5 billion yuan, adjusted net profit surged 101% year-on-year to 6.5 billion yuan, and gross profit margin also increased to 22.3%.
The market generally expects Xiaomi to have revenue of 73.4 billion yuan this quarter, net profit of 5.1 billion yuan, and gross profit margin of 21.3%. Revenue in the report exceeded expectations, mainly due to a 33.7% year-on-year increase in shipments of the mobile phone business.
In the capital market, Xiaomi's share price adjusted after the announcement of the financial report, closing down 3.38% to HK$18.3 as of May 24. Despite this, its share price still rose by as much as 38.43% in 60 days, with a year-to-date increase of 17.31%.
The development of Xiaomi's automobile business has attracted much attention. Following the release of SU7 on March 12 and its listing on March 28, its share price has continued to rise. Xiaomi executives revealed that the revenue and gross profit of the automobile business will be disclosed separately from the second quarter.
The first quarterly report did not include the performance contribution of the automotive business, but the SU7 delivery volume has exceeded the 10,000 mark, indicating the market's keen expectation for Xiaomi Motors.
Lu Weibing, president of Xiaomi Group, said that the company's goal is to achieve monthly sales exceeding 10,000 units in June and deliver more than 100,000 units throughout the year, challenging 120,000 units. Achieving this goal will have a significant impact on the company's valuation.
Xiaomi's investment and commitment in the automotive business, as well as the steady performance of traditional businesses, will jointly support the company's valuation flexibility.
Xiaomi's smartphone business also performed strongly. In the first quarter, shipments increased by 33.7% year-on-year to 40.6 million units, and revenue increased by 32.9% year-on-year to 46.5 billion yuan.
After ten quarters of stagnant growth, the global smartphone market achieved a year-on-year growth of 10% in the first quarter, and Xiaomi remained third in the industry with a market share of 14%.
Looking to the future, Xiaomi's cash flow is in good condition. As of March 31, its cash reserves increased by 34.7% year-on-year to 127.3 billion yuan, providing a solid guarantee for continued investment in the automobile business.
As Xiaomi's car deliveries increase, the market expects the company's valuation to grow further, especially after the company announced that it will disclose car business data separately.