Rising Smart Home Leader

Research evidence excerpt

Rising Smart Home Leader

Asia Pacific Insight

July 8, 2026 09:00 PM GMT

Morgan Stanley Asia Limited+MXiaomi Corp Andy Meng, CFA

Equity Analyst

Rising Smart Home Leader Andy.Meng@morganstanley.comBetty Chen +852 2239-7689

Research Associate

Betty.H.Chen@morganstanley.com +852 2239-7213

We believe Xiaomi is well positioned to capitalize on the Lillian Lou

evolution of the AI-enabled home appliance market. Domestic Equity Analyst

Lillian.Lou@morganstanley.com +852 2848-6502

revenue could exceed Rmb200bn by 2035, ~6x the current Hildy Ling

scale. Overseas markets may offer even greater upside, with EquityHildy.Ling@morganstanley.comAnalyst +852 2239-7834

revenue also potentially surpassing Rmb200bn by 2035. Gary Yu

Gary.Yu@morganstanley.com +852 2848-6918

Key Takeaways

With accelerated penetration and higher ASP, we expect China's AI home

appliance TAM to expand from ~US$123bn currently to ~US$150bn by 2030.

Xiaomi offers a wide variety of products, benefiting from consumers who prefer

to stick to the same brand. Xiaomi Corp (1810.HK, 1810 HK)

Top Pick

It has an interconnection edge via AI and HyperOS, along with a rich MAU base.

Greater China Technology Hardware | China

AI powered "Human + Car + Home" is a leading industry concept with significant

Stock Rating Overweight

synergies. Its new retail model provides another competitive edge. Industry View In-Line

Price target HK$45.00

Cyclical weakness has created an attractive long-term investment opportunity. Up/downside to price target (%) 78

Shr price, close (Jul 8, 2026) HK$25.30

52-Week Range HK$59.90-21.30

AI’s intrinsic value to Xiaomi remains underappreciated:We believe investors are Sh out, dil, curr (mn) 26,695

overlooking Xiaomi’s long-term AI upside amid near-term cyclical volatility.