Macquarie: Xiaomi Corporation-WYU7 pricing attractive, strong pre-sale data expected to drive stock price, maintaining "Outperform" rating

Macquarie released a research report stating that Xiaomi Corporation-W officially launched its first SUV, the YU7. The pre-sale situation significantly exceeded expectations, reaching 289,000 units within the first hour of sale, compared to the SU7's 88,000 units in the first 24 hours. Additionally, the pricing of the YU7 aligns with the firm's expectations. The firm maintains Xiaomi's "Outperform" rating, with a target price of HKD 69.32, expecting that the YU7's attractive pricing and strong pre-sale data will drive the stock. The firm believes that in the pure electric vehicle (BEV) SUV sector in China, due to the lack of competitive products, it is a relatively easy market for the YU7 to gain market share. Furthermore, Xiaomi is in small-scale production of the first batch of YU7 Max models, which are expected to be shipped within the next 1 to 5 weeks, while most of the booked models will start shipping in August