Xiaomi hosted its flagship product launch event on 25 Sep, debuting Xiaomi 17flagship phones, Pad 8 series tablets, premium smart home products and newcustomization service for YU7/SU7 Ultra EVs. In particular, we view Xiaomi 17’sRMB4,499 starting price as competitive against iPhone 17 (RMB5,999), as it ispositioned as the best compact flagship in China with features such as 7000mAhbattery (vs prior 5400mAh) and Leica Summilux tri-camera. 17 Pro/Max’s startingprices of RMB4,999/5,999 are lower than 15 Pro/Pro Ultra last year, and it introducesinnovative Magic Back Screen and direct Apple ecosystem integration, underscoringXiaomi's "full benchmark to iPhone" strategy. In addition, YU7 deliveries topped 40kin 3 months, with new OTA features and customization options introduced. Overall,the event highlights Xiaomi's premiumization progress in smartphones/AIoTproducts, bolstering its "Human x Car x Home" ecosystem. We maintain SOTPbasedTP of HK$62.96 (implying 26.3x FY26E P/E). Reiterate BUY. Upcomingcatalysts include flagship demand, 3Q25 results, and YU7 volume ramp.
　　Xiaomi 17 series: competitive pricing with spec upgrades; expect premiumshare gains to continue. Mgmt. positioned it as the strongest compact allrounderwith large battery, featuring 7000mAh battery (vs prior 5400mAh), Leicatriple-cam, 6.3” display with 1.18mm ultra-narrow borders. Xiaomi 17 series,equipped with Snapdragon 8 Elite, outperforms iPhone 17 in sustained gaming/heat via stereo ring cold pump (3x traditional VC). Overall, we expect it will gainstrong traction in RMB4k-5k segment, given that its RMB4,499 starting price iscompetitive against iPhone 17 and its peers.
　　Xiaomi 17 Pro/Max: Back screen innovation and Apple interconnect. Wethink 17 Pro series is positioned as compact/back-screen/selfie features. Itfeatures Magic Back Screen for customizable wallpapers, notifications and rearcamselfies, and its Leica system debuts Light Shadow Hunter 950L sensor withLOFIC for superior anti-flare/ghosting. 17 Pro Max is positioned as premiumtechnology/large-display/camera. Spec highlights include 6.9-inch large screen,super pixel RGB layout, 5X periscope, and new LOFIC sensor with 16.5EVdynamic range. Apple ecosystem perks include cross-device messages/photos, Mac multi-app access, and file drag-drop. We expect this feature willaccelerate premium penetration vs iPhone Pro lineup.
　　Others: Pad 8 series, TV S Pro Mini LED, Washer Pro, YU7 updates. Xiaomialso announced several premium AIoT products including Pad 8 series, Mi TVS Pro Mini LED, Mi Home Refrigerator Pro “Micro Ice”, Mi Washing Machine Pro3-Zone, Router BE10000 Pro, Sound 2 Max, and Portable Bluetooth Speaker.
　　For smart EV, YU7 deliveries exceeded 40,000 units in 3 months, and Xiaomilaunched new customization service for SU7 Ultra/YU7 Max to offer paint-toorder,interior themes, and bespoke accessories, which aims to bring Porsche/Rolls Royce-style personalization to sub-RMB600k EV segment. Overall, webelieve it will enhance Xiaomi’s brand equity and margin mix in EV segment.