Xiaomi (1810 HK) Key takeaways from Xiaomi Investor Day

We attended Xiaomi Investor Day 2024 in Beijing on 23 Apr. Key takeaways include: 1) SU7 sales target: 100k units in 2024 and 10k monthly delivery in June. 2) SU7 GPM target of 5-10% in 2024. 3) SU7 breakeven at 300-400k sales per year. 4) City NOA available in May and to be rolled out nationwide at Aug. 5) Smart EV sales/service centre: target to cover 46/82 cities by end of 2024. 6) Smart driving team: 1.5k/2k staff by 2024/25 from 1k currently. 7) 2024 guidance: RMB300bn in revenue with RMB24bn in R&D exp. (inc. RMB11-12bn EV-related), +15-20mn smartphone shipments. Overall, we believe SU7’s sales/GPM target exceeded market expectations, and we remain positive on Xiaomi’s strong branding and unique ‘Human-car-home’ ecosystem as major competitive edges over peers. Reiterate BUY.