Goldman Sachs: Xiaomi Group-W (01810) SU7 Pro/Max pick-up cycle shortens, increases production capacity and continues to show excellent execution

The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintains a “buy” rating for Xiaomi Group-W (01810), and the target price for 12 months is HK$56.5. Although Goldman Sachs expects the stock price to face resistance in the short term, the bank believes that risk and return is attractive in terms of 12 months, and there is a positive bias between the bank's optimistic valuation (HK$67.4) and pessimistic valuation (HK$39).

According to the report, Xiaomi drastically shortened the pickup cycle for the SU7 Pro and SU7 Max from about 30 weeks a week ago and 34 weeks a month ago to 6 to 9 weeks, and kept the estimated pick-up cycle of the SU7 basic version unchanged for about 30 weeks. In other words, consumers who ordered the SU7Pro/Max are likely to receive the vehicle at the end of 2025, that is, before the Mainland's 2026 electric vehicle purchase tax comes into effect. In addition, Xiaomi's cumulative omnichannel payment amount (GMV) reached RMB 29 billion during the Double Eleven promotion period, down 9% from RMB 31.9 billion in the same period last year.

Goldman Sachs believes that the shortening of the delivery cycle of the Xiaomi SU7 Pro/Max shows its continuous and steady execution in improving manufacturing capacity, and confirms Goldman Sachs' previous view that the tax subsidies announced on October 24 reflect Xiaomi's confidence in increasing manufacturing capacity. Goldman Sachs believes that Xiaomi's production capacity expansion will make more official progress within a few months. It believes that the window period for the release of the SU7's potential new facelift will finally arrive within the next few months. This should create a favorable product cycle for the SU7 as one of Xiaomi's star electric vehicle products as it enters 2026.

In the long run, Goldman Sachs believes that Xiaomi's robust balance sheet, strong ecosystem integration capabilities, and cost advantages arising from scale and deep participation in the electric vehicle supply chain will enhance its competitiveness and appeal in the electric vehicle field, and that Xiaomi has the ability to use its connected consumer terminals to establish one of the world's largest consumer-grade physical intelligence ecosystems.