Core Viewpoint - The report from Huafu Securities indicates that Shiyuan Co., Ltd. has successfully transitioned from product to platform with its integrated AI teaching solutions under the "Xihuo" brand, maintaining a leading position in the domestic education interactive smart panel market [1] Group 1: Market Position and Performance - In the first half of 2025, the company's domestic education interactive smart panel shipment share reached 45.3%, marking 13 consecutive years at the top of the industry [1] - The company has a broad coverage of over 2.8 million classrooms, 200,000 primary and secondary schools, and more than 2,500 higher education institutions across the country [1] Group 2: Revenue Growth and Product Development - Overseas revenue further increased to 3.032 billion yuan in the first half of 2025 [1] - The company has integrated new hardware into the Microsoft ecosystem, enhancing the penetration of MAXHUB in smart office scenarios, and is expected to experience a turning point in both volume and price [1] Group 3: Innovation and Future Growth - The company has independently developed and launched the MAXHUB X7 industrial-grade quadruped robot, marking its entry into the general intelligent equipment sector, creating a new growth platform alongside its existing controller and commercial display products [1] - As AI education evolves from functional to platform-based solutions, the company's leading position in hardware is expected to sustain growth over the next 2-3 years [1]

Core Insights - On October 23, 2023, brokerage firms provided target prices for listed companies, with significant increases noted for companies in the pet feed and communication equipment sectors, specifically Guibao Pet, StarNet RuiJie, and Weisheng Information, with target price increases of 61.09%, 50.73%, and 43.78% respectively [1][2]. Target Price Increases - Guibao Pet (301498) received a target price of 118.00 yuan, reflecting a target price increase of 61.09% from the latest closing price [2]. - StarNet RuiJie (002396) has a target price of 39.16 yuan, with a target price increase of 50.73% [2]. - Weisheng Information (688100) has a target price of 51.00 yuan, showing a target price increase of 43.78% [2]. - Other notable companies include China Unicom (600050) with a target price increase of 36.22% and Wens Foodstuff Group (300498) with an increase of 33.28% [2]. Brokerage Recommendations - A total of 59 listed companies received brokerage recommendations on October 23, with Tonghuashun (300033) receiving the highest number of recommendations at 5, followed by Guibao Pet with 4, and Meihua Biological (600873) with 3 [3][4]. - The sectors represented include software development, feed, and chemical products [4]. Rating Adjustments - On October 23, only one company, Huayou Cobalt (603799), had its rating upgraded from "Hold" to "Buy" by Huayuan Securities [5]. - This indicates a positive outlook for the energy metals sector [5]. First-Time Coverage - Nine companies received first-time coverage from brokerages on October 23, with notable mentions including Innovation New Materials (600361) rated "Buy" by Huayuan Securities, and YunTu Holdings (002539) and Meihua Biological (600873) both rated "Buy" by Global Fortune Financial [6]. - Other companies receiving first-time ratings include Babi Food (605338) and Shengquan Group (108850) [6].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [5] Core Viewpoints - The company has successfully transitioned from product to platform in its AI education solutions, achieving a 45.3% market share in domestic interactive smart panels in the education sector, maintaining its industry leadership for 13 consecutive years [3][4] - The AI-enabled products are driving structural upgrades in the B-end product offerings, enhancing teacher efficiency and personalized teaching capabilities [3] - The overseas business has shown significant growth, with revenue reaching 5.699 billion yuan in 2024, a year-on-year increase of 22.23% [4] - The company is entering the robotics sector with the launch of the MAXHUB X7 industrial-grade quadruped robot, indicating potential for high margins and strong scene adaptability [5] Summary by Sections Company Overview - The company, established in December 2005, focuses on smart interactive displays and AI technology, evolving from LCD display control boards to a comprehensive provider of smart electronic solutions [13] - It operates under several well-known brands, including Seewo for education and MAXHUB for enterprise services [13] AI Education - The AI education sector is experiencing rapid expansion, with a significant shift towards integrated smart ecosystems in educational settings [40] - The market for interactive hardware in education has reached a 72% share, indicating strong demand for AI-integrated solutions [40] - The company’s Seewo brand has a robust presence, covering over 2.8 million classrooms and serving approximately 10 million teachers [14] Company Highlights - The core component business remains a stable revenue pillar, with a market-leading position in LCD display control boards, achieving a global market share of approximately 32.72% [71] - The overseas business is expanding rapidly, with significant growth in regions like Southeast Asia and India, supported by local partnerships and government initiatives [75][78] - The company is actively investing in R&D, with a budget of 1.54 billion yuan in 2024, representing 6.88% of its revenue, ensuring a competitive edge in technology [72]

Core Viewpoint - The company has shown steady growth in its financial performance, with a focus on expanding its AI and education products, while facing challenges in its overseas ODM business and enterprise services. Financial Performance - In Q3 2025, the company achieved revenue of 7.522 billion, a year-on-year increase of 6.96%, with net profit reaching 469 million, up 7.79% year-on-year [3][4] - For the first three quarters of 2025, the company reported revenue of 18.087 billion, a 5.45% increase year-on-year, but net profit decreased by 6.81% [3][4] - The gross margin declined by 1.19 percentage points year-on-year due to raw material price fluctuations and changes in revenue structure, although it showed signs of stabilization [3][4] Business Segments - In the smart control components sector, the company has seen significant growth in its LCD display main control board business and home appliance controllers, benefiting from rapid order growth [3][4][5] - The education business continues to grow steadily, with the company's AI education products gaining traction due to supportive government policies [4][5][6] - The overseas ODM business has faced challenges, with revenue continuing to decline due to market demand changes and tariff fluctuations [5][6][12] AI and Education Initiatives - The company has established 19 key application demonstration areas for its AI classroom feedback system, covering over 4,000 schools and generating more than 450,000 feedback reports [6][7] - The company aims to deepen the integration of AI across its product offerings and enhance user experience in the education sector [7][8] Robotics and Innovation - The company is optimistic about the long-term potential of the robotics sector, having launched new products such as flexible robotic arms and commercial cleaning robots [10][11] - The company plans to continue investing in the robotics business to drive growth [11] Future Outlook - The company expects steady revenue growth for the year, driven by strong performance in smart control components and education businesses, despite challenges in overseas ODM and enterprise services [15][16] - The company has submitted an application for listing H shares on the Hong Kong Stock Exchange, indicating plans for further expansion [17]

Group 1 - The core point of the news is that Shiyuan Co., Ltd. has seen a stock price increase of 1.82% on October 23, reaching 41.45 CNY per share, with a total market capitalization of 28.85 billion CNY and a cumulative increase of 13.94% over the past four days [1] - Shiyuan Co., Ltd. specializes in the research, development, and sales of electronic products, including LCD display control boards, interactive smart panels, and mobile smart terminals, with its main business revenue composition detailed [1] - The company was established on December 28, 2005, and went public on January 19, 2017, with its headquarters located in Guangzhou, Guangdong Province [1] Group 2 - Dongzheng Asset Management has a fund that heavily invests in Shiyuan Co., Ltd., specifically the Dongfanghong Xinhui Balanced Two-Year Mixed Fund (FOF) (011587), which holds 894,600 shares, accounting for 1.9% of the fund's net value [2] - The fund has generated a floating profit of approximately 662,000 CNY today and 4.54 million CNY during the four-day stock price increase [2] - The Dongfanghong Xinhui Balanced Two-Year Mixed Fund (FOF) was established on March 9, 2021, with a current scale of 1.632 billion CNY and has achieved a year-to-date return of 16.38% [2]

Group 1 - The core point of the news is that Shiyuan Co., Ltd. has seen a significant increase in its stock price, rising 1.82% to 41.45 CNY per share, with a total market capitalization of 28.85 billion CNY and a cumulative increase of 13.94% over the past four days [1] - Shiyuan Co., Ltd. specializes in the research, development, and sales of electronic products, including LCD display control boards, interactive smart panels, and mobile smart terminals, with its main business revenue composition being: intelligent control components 26.30%, intelligent terminals and applications 23.16%, commercial display equipment and systems 16.71%, and others [1] - The company is located in Guangzhou, Guangdong Province, and was established on December 28, 2005, with its listing date on January 19, 2017 [1] Group 2 - Changjiang Asset Management has a fund that heavily invests in Shiyuan Co., Ltd., specifically the Changjiang Xuri Mixed A Fund, which reduced its holdings by 33,600 shares in the second quarter, now holding 42,400 shares, representing 3.4% of the fund's net value [2] - The fund has seen a floating profit of approximately 31,400 CNY today and a total floating profit of 215,000 CNY during the four-day increase [2] - The Changjiang Xuri Mixed A Fund was established on July 24, 2024, with a current scale of 35.03 million CNY and has achieved a year-to-date return of 21.67% [2]

Summary of the Conference Call for Shiyuan Co., Ltd. Company Overview - **Company**: Shiyuan Co., Ltd. (视源股份) - **Industry**: Technology and Electronics Key Financial Metrics - **Q3 Revenue**: 6.292 billion CNY, stable quarter-on-quarter - **Net Profit**: 469 million CNY, up 7.79% year-on-year - **YTD Revenue**: 18.089 billion CNY, up 5.45% year-on-year - **YTD Net Profit**: 867 million CNY, down 6.81% year-on-year, but the decline has narrowed [2][4] Core Business Insights Intelligent Control Components - Significant growth driven by collaboration with major clients - Home appliance motor controllers benefitting from rapid domestic and international order growth - New businesses in automotive electronics continue to show high growth [5] Education AI Business - The "Xihuo Classroom Knowledge Feedback System" covers over 4,000 schools - "Xihuo AI Lesson Preparation Subscription Service" has over 1 million active users - Plans to accelerate nationwide promotion of education AI products, including interactive smart whiteboards [6] Robotics Sector - Continuous investment in robotics, focusing on commercial service and cleaning robots - Pilot applications in inspection, ranching, and power systems - Aiming to become a new growth point in the next 5-10 years [7] Margin and Cost Management - Overall gross margin decreased by 0.9 percentage points year-on-year due to product mix changes - Anticipated challenges in Q4 due to raw material price fluctuations, with plans to stabilize margins through product structure optimization and cost control [8] Overseas ODM Business - Continued decline in overseas ODM business, particularly in the U.S. market - Plans to expand core customer base and introduce new product categories to drive long-term growth [9][11] AI Product Development - Focus on industry solutions with AI functionalities in intelligent control components - Applications in education and enterprise markets based on edge computing for quick user response and data security [12][13] Market Demand and Trends - Domestic education market shows slight growth in classroom numbers but declining unit prices - High growth in recording equipment, teaching PCs, and software, particularly in AI-enhanced education tools [15][16] Inventory and Supply Chain - Inventory levels reached 3.7-3.8 billion CNY to prepare for the education sector's peak delivery season - Increased stock of critical components due to rising raw material prices, especially memory chips [23][24] Future Outlook - Plans for an IPO in Hong Kong, with A1 application submitted and in the regulatory review phase - Targeting a minimum fundraising ratio of 10% and engaging with potential cornerstone investors [25] Conclusion - Shiyuan Co., Ltd. is navigating a complex landscape with growth in intelligent control components and education AI, while facing challenges in overseas markets and raw material costs. The company is strategically positioning itself for future growth through innovation and market expansion.

Core Insights - The 138th China Import and Export Fair (Canton Fair) showcased the debut of Guangzhou Shiyuan Electronic Technology Co., Ltd.'s (Shiyuan Co., 002841) commercial cleaning robots, attracting significant attention from domestic and international buyers [1] - Shiyuan Co. has established partnerships with clients from various Asia-Pacific countries, including Japan and South Korea, as well as European nations such as Germany, the UK, France, Italy, the Netherlands, Sweden, and Poland, leading to successful deployments [1] - The MAXHUB C3 commercial cleaning robot offers efficient automated cleaning solutions, capable of operating independently in unattended environments, thus optimizing operational efficiency and maximizing the value of "human-machine collaboration" [1] Product Showcase - In addition to commercial cleaning robots, Shiyuan Co. presented quadruped robots, intelligent flexible robotic arms, and an embodied operation algorithm platform, demonstrating a comprehensive technological layout in the robotics field [2] - The industrial-grade quadruped robot MAXHUB X7 series showcases excellent mobility and environmental adaptability, suitable for complex tasks in industries such as power and rescue [2] - The self-developed embodied operation algorithm platform enables end-to-end intelligent operation, supporting various learning methods and facilitating efficient human-machine collaborative training [2] Future Outlook - The head of Shiyuan Co.'s robotics division emphasized the importance of aligning robotic technology with real-world applications to address practical problems, indicating a commitment to accelerating the production of marketable robotic products [3] - The company aims to collaborate with global partners to introduce smarter and more practical robotic solutions to the world [3]

Investment Rating - The report maintains a "Buy" rating for the company [9][15] Core Views - The company has reached an inflection point in its performance, with revenue and profit growth showing signs of recovery, although gross margins are temporarily under pressure due to supply chain issues [3] - The company reported a revenue of 18.087 billion yuan for the first three quarters of 2025, a year-on-year increase of 5.45%, while the net profit attributable to shareholders was 867 million yuan, a year-on-year decrease of 6.81% [3] - The company has seen significant growth in its major business segments, including smart control components and AI education products, which are benefiting from favorable policies [4][5][6] Summary by Sections Company Overview - Latest closing price: 36.38 yuan - Total shares: 696 million, circulating shares: 521 million - Total market capitalization: 25.3 billion yuan, circulating market capitalization: 19 billion yuan - 52-week high/low: 46.66/32.33 yuan - Debt-to-asset ratio: 42.1% - Price-to-earnings ratio: 25.80 [2] Financial Performance - For Q3 2025, the company achieved revenue of 7.522 billion yuan, a year-on-year increase of 6.96%, with a net profit of 469 million yuan, up 7.79% year-on-year [3] - The company’s inventory as of Q3 2025 was 3.719 billion yuan, a year-on-year increase of 60.67% [3] Business Segments - The board card business has shown significant growth due to deepened cooperation with major clients, while the home appliance controller business continues to benefit from rapid order growth [4] - The AI education segment has made notable progress, with the company's products leading the industry transformation [5] - The company is focusing on the long-term potential of robotics, with commercial robots beginning mass production and entering various markets [6] Profit Forecast - Revenue projections for 2025-2027 are 24.653 billion, 27.835 billion, and 31.485 billion yuan, with year-on-year growth rates of 10.05%, 12.91%, and 13.11% respectively [7] - Net profit forecasts for the same period are 1.026 billion, 1.303 billion, and 1.610 billion yuan, with growth rates of 5.70%, 26.92%, and 23.63% respectively [9]

Group 1 - The company held an online performance exchange meeting on October 21, attracting over a hundred professional investment institutions, indicating strong interest in its business outlook [1] - In the third quarter, the company achieved growth in both operating revenue and net profit attributable to shareholders, driven by its AI+ education ecosystem and emerging businesses such as home appliance controllers and automotive electronics [1][2] - The company has successfully launched multiple innovative products in its robotics business this year, further solidifying its multi-engine growth strategy [1] Group 2 - As a leader in the education information technology sector, the company is accelerating its "AI+ education" strategy, which is supported by favorable national and local policies [2] - By the end of September 2025, the company established 19 key application demonstration areas for its smart feedback system, covering over 4,000 schools and generating more than 450,000 classroom feedback reports [2] - The company’s AI lesson preparation tool has activated over 1 million users, and its digital base has reached over 9,000 schools in China, indicating a scalable implementation of its education AI ecosystem [2] Group 3 - The MAXHUB overseas self-owned brand business continued to grow rapidly in the third quarter, becoming a core growth engine for the company's international operations [3] - The company has accelerated the launch and promotion of overseas products, including the innovative education AI software MAXHUB EasiClass and the Microsoft-certified XBar series meeting products [3] - The company’s robotics business has made significant breakthroughs, with the launch of several innovative products, including quadruped robots and flexible robotic arms, and is expanding its commercial cleaning robots into European and Asian markets [3] Group 4 - The company submitted an application for H-share listing on the Hong Kong Stock Exchange in June, aiming to create an international capital platform to support its global strategy [4] - The funds raised from the listing will be used to enhance AI and display technology research and development, accelerate overseas channel expansion, and improve digital capabilities [4]