Xiaomi's Strategic Growth in EV and Smartphone Markets Drives Buy Rating with HK$56 TargetWe visited Asian investors on 25 Nov. The tour showcased advanced automation, including thousands of robotic arms assembling the SU7 and YU7 models. However, production bottlenecks persist, as the Phase 2 (F2) factory is yet to be fully operational. Management expects this constraint to be resolved by 2026F, at which point F2 should double annual capacity to 600,000 units on a two-shift basis. In our view, future shipment growth should be driven by a refreshed model line-up and the third EV model launches in 2026F; it also plans to enter the European premium market in 2027F (please see details on p.2).