Goldman Sachs: Initiate a buy rating on XIAOMI-W (01810) with a target price of HK$59.

Goldman Sachs released a research report stating that XIAOMI-W (01810) is building a world model for testing autonomous driving/advanced driver assistance systems (AD/ADAS) algorithms, which are expected to be used for algorithm training in the future. Through the world model, virtual AI drivers can learn how to drive through practical experience, rather than traditional imitation of human drivers, and the management believes that this is a better and more efficient way to train algorithms. They rated it as a "buy" with a target price of 59 Hong Kong dollars in 12 months. The Xiaomi SU7 Max version hardware already supports Level 3 autonomous driving function, which can be activated after a software update, one step ahead of China's plan to enforce the L3 standard by 2026. The management stated that Xiaomi has independently developed Occupancy Network technology, which can be used for 3D object recognition and motion prediction, and surpasses the industry average level.