UOB Kay Hian
Date of Report: Friday, 27 June 2025

Xiaomi Makes Waves with YU7 SUV, AI Glasses, and New Device Launches: A Comprehensive 2025 Outlook

Overview: Xiaomi’s Strategic Moves in 2025

Xiaomi Corporation continues to expand its product ecosystem, unveiling a series of high-profile launches including the YU7 SUV, AI Glasses, new smartphones, tablets, and a suite of IoT devices. The company’s aggressive innovation pipeline and solid financial outlook have prompted UOB Kay Hian to reaffirm its BUY rating with a target price of HK\$69.90, reflecting a 22.8% potential upside from the current share price of HK\$56.90.

Stock Snapshot

• Sector: Communications Equipment
• Market Cap: HK\$1,419,563 million (US\$208,759 million)
• Price Performance (YTD): +64.9%
• Major Shareholders: Smart Mobile Holdings Ltd (8.56%), Lin Bin (2.09%)
• 52-week Range: HK\$59.45 / HK\$15.36

Xiaomi YU7: Taking on the Premium SUV Market

Xiaomi officially launched the YU7 SUV, targeting the high-performance luxury mid-large SUV segment. The YU7 is available in three variants:

• Standard: Rmb253,500
• Pro: Rmb279,900
• Max: Rmb329,900

The YU7 offers nine exterior and four interior color options, LiDAR sensors, and is powered by the NVIDIA Drive AGX Thor platform. The model is positioned for family use, with a wider and taller cabin, advanced shock absorption, and redesigned seats. Initial demand has been exceptionally strong, with 289,000 orders placed within the first hour of launch.
Pre-order Incentives:

• Free upgrades for orders before 31 July 2025, including Nappa leather seats, “zero-gravity” seats, electric front trunk, and HEPA air purification (total value Rmb29,000)
• Lifetime access to Xiaomi’s HAD self-driving system (valued at Rmb26,000)
• Carbon fibre exterior upgrades for the Max variant

Xiaomi is offering a small batch of pre-configured YU7s for rapid delivery (1-5 weeks) with a Rmb20,000 non-refundable deposit. Regular orders require a Rmb5,000 refundable deposit, confirmed after seven days. For comparison, the SU7 received about 75,000 confirmed orders in its first month.

YU7 vs. Key Competitors: Specs Table

*Li L6 is an EREV

Xiaomi AI Glasses: Innovation Meets Wearable Tech

Xiaomi’s highly-anticipated AI Glasses offer advanced functionality and design, going toe-to-toe with Meta’s Ray-Ban smart glasses. Highlights include:

• Lightweight at 40g (vs. Ray-Ban’s 49g)
• 8.6 hours average battery life (Ray-Ban: 4 hours)
• Electrochromic function for adjustable shading on premium SKUs
• No waveguide display, keeping pricing competitive
• Three SKUs: Standard (Rmb1,999), Black/White Electrochromic (Rmb2,699), Coloured Electrochromic (Rmb2,999)

Initial demand is robust, with electrochromic versions temporarily sold out on launch. Xiaomi estimates annual sales at 300,000 units for the first generation, with total revenue impact limited to about 1%.

Xiaomi AI Glasses vs. Competitors: Specs Table

New Smartphone Releases: Mix Flip 2 and Redmi K80 Ultra

Xiaomi Mix Flip 2 features a more robust hinge, 7.57mm folded thickness, 199g weight, 4.01” OLED cover screen (3,200 nits), and a Snapdragon 8 Elite processor. The dual-camera includes a 50MP f/1.7 main and a 50MP f/2.2 ultrawide camera. Pricing starts at Rmb5,999 (12GB/256GB) to Rmb7,299 (16GB/1TB), with the entry model eligible for national trade-in subsidies in China.
Redmi K80 Ultra targets younger, male demographics with a focus on battery life, gaming, and energy efficiency. It switches to a Mediatek Dimensity 9400+ processor (3nm), offers a larger battery, and starts at Rmb2,599 (12GB/256GB), rising to Rmb3,799 (16GB/1TB). After subsidies, the effective price is discounted relative to the original K80.

Key Smartphone Specs Comparison Table

Expanding the Tablet and IoT Ecosystem

Xiaomi Pad 7S Pro boasts a 12.5” 3:2 display and in-house XRING O1 SoC, positioned as a lightweight alternative to the Pad 7 Ultra and iPad Air. It is priced from Rmb3,299 (8GB/256GB) to Rmb4,499 (16GB/1TB), with effective pricing lower than previous models due to ongoing trade-in subsidies.
Redmi K Pad is Redmi’s first compact tablet, directly targeting the iPad Mini. It is equipped with a Mediatek Dimensity 9400+ chip and features advanced cooling and haptics, retailing from Rmb2,799 to Rmb4,199.
Other launches include Smart Band 10, Watch S4 (41mm), Open Ear Earbuds Pro, and updates to hair dryers, vacuums, and air-conditioners.

Stock Impact and Market Expectations

• Product specifications and pricing were largely consistent with market expectations.
• YU7 is positioned to avoid cannibalization with SU7 due to different target audiences.
• YU7’s pre-launch interest was 3x that of SU7; strong initial orders suggest robust market reception.
• AI Glasses pricing slightly above some investor expectations, but strong demand for electrochromic models signals market acceptance.
• AI Glasses are expected to make a limited revenue contribution (~1% of total revenue), with first-gen sales targeted at 300,000 units.

Valuation and Recommendation

• Rating: BUY (Maintained)
• Target Price: HK\$69.90
• Valuation: HK\$52.10 for the core business (30x 2025F PE, 1SD above five-year historical mean), HK\$17.80 for EV business (10-year DCF, WACC 9.6%, 5.1x 2025F P/S)

Financial Highlights

Conclusion: Xiaomi’s Strategic Position Remains Strong

Xiaomi’s relentless innovation across automotive, wearables, smartphones, tablets, and IoT devices positions the company for continued growth. The strong market reception of the YU7 SUV and AI Glasses, coupled with solid financial metrics and a robust product pipeline, support a positive outlook for investors. UOB Kay Hian’s maintained BUY rating and uplifted target price reflect confidence in Xiaomi’s diversified growth trajectory for 2025 and beyond.