Goldman Sachs: Xiaomi (1810.HK) New YU7 GT Model Filed with MIIT; Expect Mid-2026 Launch; Buy
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Goldman Sachs maintains a Buy rating on Xiaomi Corporation (1810.HK) with a 12-month target price of HKD47.50, based on a sum-of-the-parts valuation. On February 6, Xiaomi filed a new YU7 GT model with the Ministry of Industry and Information Technology (MIIT). Positioned as a high-performance variant within the YU7 series, the vehicle features larger dimensions of 5015/2007/1597mm and enhanced power, delivering over 1,000 horsepower via dual motors totaling 738kW. The YU7 GT achieves a top speed of 300 km/h.
Goldman anticipates an official launch around mid-2026, strategically bridging the SU7 refresh in late March and the third model, a full-size range-extended SUV, slated for late in the third quarter. The firm estimates a starting price range of RMB400,000 to RMB500,000. This pricing positions the YU7 GT below the RMB530,000 SU7 Ultra while offering superior dimensions and performance metrics compared to competitors like Tesla's Model Y Performance. Goldman expects this consistent cadence of new releases every two to three months to sustain brand momentum.
The valuation assigns 18x forward EV/NOPAT to Xiaomi's core businesses, applies a discounted cash flow valuation of $52 billion to its EV operations, and incorporates a 10% holding company discount. Xiaomi is projected to achieve revenue and EPS compound annual growth rates of 21% and 23%, respectively, from 2024 to 2027. Key downside risks include intensifying EV competition and potential gross margin pressure.