$XIAOMI-W (01810.HK)$The financial results for the year ended 23Q4 and the full year were recently released. Overall results for the fourth quarter of 2023 exceeded market expectations. Q4 revenue reached 73.2 billion yuan (RMB, same below), achieving a 10.9% year-on-year increase; net profit for the period was 4.7 billion yuan, an increase of 50.3% year-on-year. Revenue and net profit were higher than Bloomberg's agreed expectations of 72.5 billion yuan and 3.77 billion yuan, respectively.
I. Business Overview
Xiaomi's business structure includes smartphones, IOT and consumer products, and Internet services. With the mobile phone business as the core, it accounts for about 60% of revenue. On this basis, the Internet of Things (IoT) business has been expanded, and diversified product lines covering TVs, wearables, smart homes, etc. have been built to form a complementary linkage effect with the mobile phone business.
The Internet Service Division's revenue comes from Internet value-added services such as advertising services and online games and fintech businesses. It accounts for only 11% of revenue, but with its high gross profit characteristics (gross profit margin of 75% in 23 years), it has contributed a profit scale comparable to that of the mobile phone business.
Figure: Xiaomi's business revenue share
2. Mobile phone business: New devices bring about a month-on-month increase in ASP, and costs are expected to rise in 24 years
The Q4 smartphone business achieved revenue of 44.2 billion yuan, an increase of 20.6% year-on-year, mainly due to increased shipments. The Xiaomi smartphone business benefited from the recovery of the global market. According to Canalys data, in the fourth quarter, the global...