Goldman Sachs maintains "Buy" rating on Xiaomi Group-W (01810), raises target price to HK$69

According to Zhitong Finance APP,Goldman SachsThe research report stated that maintainingXiaomiGroup-W (01810) received a "Buy" rating, with its target price raised from HK$65 to HK$69. On June 26, Xiaomi Group officially launched the highly anticipated YU7, a high-end pure electric SUV series under Xiaomi that combines performance, comfort and spaciousness. Three minutes before the sale, the number of orders quickly exceeded 200,000, of which more than 122,000 orders have been confirmed. In the first hour of sales, orders surged to 289,000.

The bank stated that consumers need to pay a deposit of 5,000 yuan for the YU7 model, which is unconditionally refundable within 7 days (consistent with the policy at the time of the SU7's release). Although some orders were converted from unfulfilled SU7 orders, the market demand for the Xiaomi YU7 still far exceeds the company's and market expectations. Within the first 24 hours, the Xiaomi YU7 received 15,000 orders, indicating that Xiaomi will continue to consolidate its leading position in China's high-end automotive market.

The report states that the retail prices of the YU7 standard, Pro, and Max versions are RMB 253,500, RMB 279,900, and RMB 329,900 respectively (approximately US$35,000, US$39,000, and US$46,000), which is largely in line with expectations and maintains high competitiveness compared to its peers.

In addition, considering the popular sales of the Xiaomi SU7, the YU7 has the following performance points:1) Occupies an important position in the high-end SUV market:In China's high-end SUV market, the YU7 andTeslaModel Y, Li Auto L6 Competing with other models, it surpasses its rivals in terms of size, interior space, driving performance, powertrain, and range support.2) Different from SU7:YU7 providesluxuryThe balance between performance and comfort, as well as a comprehensive upgrade over the SU7 in all aspects, distinguish it from the performance-oriented sedan SU7.3) Expand the Xiaomi ecosystem:The YU7 further expands Xiaomi's AI car and smart home ecosystem, enhancing the brand's and ecosystem's appeal to consumers.