Investment Rating - The investment rating for the company is maintained at "Buy-A" [1] Core Views - The company has launched a restricted stock incentive plan aimed at over 225 core personnel, which constitutes 30.91% of its total workforce as of December 31, 2023. This plan is designed to enhance corporate governance and attract talent, aligning the interests of shareholders and core personnel for long-term development [1][3] - The company is a leading global video security chip design firm, focusing on the research and sales of video security chips used in smart security, video intercom, and intelligent automotive applications. The incentive plan is expected to strengthen company cohesion and lay a solid foundation for future long-term growth [1][3] Financial Performance and Forecast - The company is projected to achieve revenues of 2.48 billion yuan, 2.97 billion yuan, and 3.55 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 22.7%, 19.7%, and 19.7% [1][4] - The expected net profit attributable to the parent company for the same years is 271 million yuan, 416 million yuan, and 576 million yuan, with corresponding growth rates of 32.3%, 53.4%, and 38.6% [1][4] - The company's gross margin is expected to stabilize, with projections of 37.6%, 38.4%, and 39.1% for the years 2024, 2025, and 2026, respectively [4] Market Dynamics - The company has a relatively high overseas revenue share, with growth driven by international expansion and e-commerce. The most significant growth momentum is observed in the e-commerce sector, which is accelerating its market coverage both domestically and globally [1][3] - The competitive landscape is expected to stabilize in the second half of 2023 after a challenging first half, with the company's comprehensive product offerings and strong customer relationships supporting its gross margin trends [1][3]

Investment Rating - The report gives a "Buy-A" recommendation for the company, indicating a positive outlook for investment over the next six months [3][8]. Core Viewpoints - The company is a leading player in the video security chip market, with a comprehensive product line and ongoing technological upgrades. It is expected to achieve revenue of CNY 2.48 billion, CNY 2.97 billion, and CNY 3.55 billion for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 22.7%, 19.7%, and 19.7% [3][8]. - The projected net profit attributable to the parent company is CNY 272 million, CNY 417 million, and CNY 578 million for the same years, with growth rates of 32.6%, 53.6%, and 38.5% [3][8]. Financial Data and Valuation - The company is expected to achieve revenue in the smart security segment of CNY 1.80 billion, CNY 2.16 billion, and CNY 2.60 billion for 2024-2026, with growth rates of 25.0%, 20.0%, and 20.0% [6][22]. - The gross margin for the smart security business is projected to improve to 37.0%, 38.0%, and 39.0% over the same period [6][22]. - In the smart vehicle segment, revenue is expected to reach CNY 215 million, CNY 258 million, and CNY 310 million, with growth rates of 15.0%, 20.0%, and 20.0% [6][22]. - The overall revenue for the company is projected to be CNY 2.48 billion, CNY 2.97 billion, and CNY 3.55 billion for 2024-2026, with corresponding gross margins of 37.6%, 38.4%, and 39.1% [20][27]. Competitive Positioning - The company holds significant market shares in various segments, including 36.5% in the global IPC SoC market and 38.7% in the global NVR SoC market as of 2021, ranking first in both categories [17][19]. - In the video intercom sector, the company has a 51.8% market share in the global USB video conferencing camera chip market, also ranking first [17][19]. - The company is positioned in the mid-range of valuations compared to four comparable companies, indicating a competitive standing in the market [8][23].