Guotai Haitong raises target price for Xiaomi-W (01810) to HKD 77.7. The YU7 order data brings a pleasant surprise.

Guotai Haitong released a research report stating that after the launch of the new car model YU7 by XIAOMI-W (01810), the number of orders exceeded 200,000 units in just 3 minutes, and reached 289,000 units in the first hour. After 18 hours of sales, the number of locked orders for the YU7 has exceeded 240,000 units, surprising the market and reflecting strong consumer willingness to purchase. The bank has raised Xiaomi's operating revenue forecasts to RMB 486.1 billion, RMB 631.1 billion, and RMB 756.9 billion, and adjusted net profit forecasts to RMB 44.1 billion, RMB 58.4 billion, and RMB 72.8 billion, raising the company's target price to HKD 77.7, and maintaining a "buy" rating. The report mentioned that Xiaomi's Phase 2 factory passed the planning acceptance on April 22 and will start production in July and August according to the plan. After the production, the two-phase factory will provide a total annual production capacity of 300,000 units. Xiaomi also released AI glasses, with the expectation that the experience in the consumer electronics supply chain can be reused for AI glasses, while AI glasses, as one of the next-generation end-side AI entrances, are expected to integrate Xiaomi's ecosystem of people, cars, and homes, having great strategic significance.