Goldman Sachs: Maintains "buy" rating on XIAOMI-W (01810) with target price raised to HK$69.

Goldman Sachs released a research report stating that it maintains a "buy" rating on XIAOMI-W (01810) with a target price raised from 65 Hong Kong dollars to 69 Hong Kong dollars. On June 26th, Xiaomi officially released the highly anticipated YU7, which is Xiaomi's high-end pure electric SUV series, combining performance, comfort, and spaciousness. Within the first three minutes of opening sales, the order volume quickly exceeded 200,000, with over 122,000 orders confirmed. In the first hour of sales, the order volume soared to 289,000. The report mentioned that consumers need to pay 5,000 RMB as a deposit for the YU7 model, which can be unconditionally refunded within 7 days (consistent with the policy when SU7 was released). Despite some orders being converted from unfinished SU7 orders, the market demand for Xiaomi YU7 still far exceeds the company's and market expectations. Within the first 24 hours, Xiaomi YU7 received 15,000 orders, indicating that Xiaomi will continue to consolidate its leading position in the high-end automobile market in China. The report stated that the retail prices for YU7 standard, Pro, and Max versions are 253,500 yuan, 279,900 yuan, and 329,900 yuan (approximately $35,000, $39,000, and $46,000 USD), which is in line with expectations and remains highly competitive compared to peers. Furthermore, considering the success of Xiaomi SU7, YU7 has the following performances: 1) Occupying an important position in the high-end SUV market: In the Chinese high-end SUV market, YU7 competes with models such as Tesla Model Y and Li Auto L6, surpassing competitors in terms of size, interior space, driving performance, powertrain, and range support. 2) Differentiating from SU7: YU7 differentiates itself from the performance-oriented sedan SU7 by providing a balance of luxury, performance, and comfort, and a comprehensive upgrade in all aspects relative to SU7. 3) Expanding the Xiaomi ecosystem: YU7 further expands Xiaomi's artificial intelligence automobile and smart home ecosystem, enhancing the brand and ecosystem's attractiveness to consumers.