Morgan Stanley: Xiaomi's YU7 GT Launch Supports Electric Vehicle Shipment Goals

Stock News05-22 13:57

Morgan Stanley has released a research report stating that Xiaomi Group-W (01810) has launched the YU7 GT, a high-performance electric SUV designed for long-distance travel and dynamic driving performance. The starting price is 389,900 yuan, with a fully-equipped version priced at 429,900 yuan. Simultaneously, Xiaomi has also introduced the standard version of the YU7, with a starting price of 233,500 yuan, which is 20,000 yuan lower than the longer-range version, potentially attracting more new orders. The target price is set at HK$45 with an "Overweight" rating. The report notes that while some investors are concerned about weak new order intake for the higher average selling price YU7 GT, the bank views the launch of the YU7 standard version as a strategic move that will help Xiaomi achieve its electric vehicle shipment targets. Additionally, Xiaomi has concurrently launched new products, including the Xiaomi 17 Max smartphone, Xiaomi Band 10 Pro, Xiaomi clip-on open-ear headphones, and a new generation of smart home appliances, including air conditioners, televisions, and refrigerators. This initiative further diversifies and enriches revenue sources, serving as a key advantage amid headwinds in the smartphone market.

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