Xiaomi hosted its flagship launch event on 27 Feb, introducing 9 new products, with highlights being Xiaomi 15 Ultra and Xiaomi SU7 Ultra. The event marks Xiaomi’s continued push towards premiumization in smartphones and EV expansion. The Xiaomi 15 Ultra aims to challenge the premium smartphone market, while SU7 Ultra is positioned as a high-performance luxury EV, setting new benchmarks in speed, design, and smart technology. We reiterate our positive view on Xiaomi's premiumization strategy, strong ecosystem integration and expanding EV presence. Maintain BUY. Upcoming catalysts include 4Q24 results, Xiaomi 15 Ultra sales in March, SU7 Ultra pre-orders/deliveries in 2Q, and AI glasses/IoT launches in 2Q.
　　Xiaomi 15 Ultra: The Ultimate Flagship Smartphone. With a continued focus on premiumization strategy, Xiaomi unveiled its most advanced smartphone, Xiaomi 15 Ultra, targeting RMB6K+ price band, competing directly with Apple’s iPhone 16 Pro Max and Samsung’s Galaxy S24 Ultra. Priced from RMB 6,499, Xiaomi 15 Ultra offers key features such as 1) Camera: Leica quad-camera system with 1-inch "Night God" sensor, 200MP periscope telephoto lens and 28x lossless zoom. 2) Display & build: 6.73- inch 2K ultra dynamic display, ultrasonic fingerprint scanner, IP68 and aerospace-grade aluminum frame, 3) Connectivity: Xiaomi Starlink communication and Apple ecosystem interoperability.
　　Xiaomi SU7 Ultra: The "New Luxury Car"; Selling price lower than expected. SU7 Ultra marks Xiaomi’s entry into the supercar segment, which it positioned to compete with Tesla’s Model S Plaid and Porsche’s Taycan Turbo. SU7 Ultra is priced at RMB 529,900, with RMB 20,000 deposit, and pre-orders are opened until 31 Mar. Key features include: 1) Performance: Tri-Motor AWD System, 133 kWh CATL Qilin battery, 10-80% charge in 11min; 2) Autonomous driving: Xiaomi HAD End-to-End smart driving, LiDAR + Orin-X computing. 3) Design & luxury upgrades: carbon fiber body panels, 25 speakers, upgraded NVH noise reduction.
　　Implications. We believe the event is largely in-line with expectations, and AI smart glasses launch remains the next key catalyst for Xiaomi’s share price. We believe Xiaomi’s “Human x Car x Home” ecosystem will continue to benefit from global share gains, SUV launch and AI product cycle into FY25/26E. Reiterate BUY with SOTP-based TP of HK$ 54.53. Upcoming catalysts include 4Q24 results, Xiaomi 15 Ultra sales in March, SU7 Ultra pre-orders/deliveries in 2Q, AI glasses/IoT launches in 2Q.