Investment Rating - The investment rating for the company is "Accumulate" (首次覆盖) [1] Core Views - The company's performance is supported by a recovery in downstream demand, leading to steady revenue growth and improved profitability in core business areas. In the first half of 2024, the company achieved operating revenue of 1.183 billion yuan, a year-on-year increase of 19.92%, and a net profit attributable to shareholders of 130 million yuan, up 11.3% year-on-year [1][2] Summary by Sections Financial Performance - In the first half of 2024, the company reported operating revenue of 1.183 billion yuan, a 19.92% increase compared to the previous year. The net profit attributable to shareholders was 130 million yuan, reflecting an 11.3% year-on-year growth. The smart security segment generated revenue of 812 million yuan, up 10.92% year-on-year, with a gross margin of 33.58%, a slight increase of 1.19 percentage points [1][2] - The video intercom business saw revenue of 246 million yuan, a significant year-on-year increase of 71.14%, with a gross margin of 45.99%, up 3.16 percentage points [1] Market Dynamics - The recovery in downstream demand has led to a steady increase in performance, with inventory levels decreasing by approximately 62 million yuan compared to the end of 2023. The company is also expanding into niche market applications and accelerating the introduction of new products [1] Financial Projections - The company is expected to maintain its growth momentum, with projected revenue growth of 10.5% for the full year and a gross margin of approximately 33.5%. The video intercom business is anticipated to continue its strong performance, with a projected revenue growth of 75% for the year [1][2] - Forecasted net profits for 2024, 2025, and 2026 are 277 million yuan, 354 million yuan, and 445 million yuan, respectively, with corresponding P/E ratios of 49.3, 38.6, and 30.7 [2][3] Comparable Company Analysis - The report includes a comparison with similar companies, such as Allwinner Technology, Espressif Technology, and Hengxuan Technology, highlighting the company's competitive position and growth potential in the market [3] Cash Flow and Investment - The company received net cash inflow of 617 million yuan from its initial public offering, with a net increase in cash and cash equivalents of 152 million yuan, reflecting year-on-year increases of 387.7% and 164.13%, respectively. Investment projects are progressing steadily, with significant investments in AI ultra-high-definition IPCSoC chip development and new AI processor IP projects [1][4]

Investment Rating - The investment rating for the company is "Accumulate" (首次覆盖) [1] Core Views - The demand recovery supports performance growth, and the core business profitability is improving. In the first half of 2024, the company achieved operating revenue of 1.183 billion yuan, a year-on-year increase of 19.92%, and a net profit attributable to shareholders of 130 million yuan, a year-on-year increase of 11.3% [1][2] Summary by Relevant Sections Financial Performance - In the first half of 2024, the company's revenue reached 1.183 billion yuan, up 19.92% year-on-year, while the net profit attributable to shareholders was 130 million yuan, reflecting an 11.3% increase year-on-year. The smart security segment generated revenue of 812 million yuan, a 10.92% increase, with a gross margin of 33.58%, up 1.19 percentage points year-on-year [1][2] - The video intercom business saw revenue of 246 million yuan, a significant year-on-year increase of 71.14%, with a gross margin of 45.99%, up 3.16 percentage points [1] Market Dynamics - The recovery in downstream demand has supported steady growth in performance, with the main consumer sectors gradually rebounding. The company's inventory decreased by approximately 62 million yuan compared to the end of 2023, indicating improved demand dynamics [1] Investment Projects - The company received net cash inflow of 617 million yuan from its initial public offering, with a net increase in cash and cash equivalents of 152 million yuan, representing increases of 387.7% and 164.13% year-on-year, respectively. Ongoing investment projects include the development of next-generation AI ultra-high-definition IPCSoC chips and AI processor IP, with progress rates of 53.33% and 40.25%, respectively, both expected to be operational by the end of 2027 [1][2] Profit Forecasts - The company is expected to maintain the revenue growth rate of 10.5% for the full year, with a gross margin of approximately 33.5%. The video intercom business is projected to continue its rapid growth, achieving a revenue increase of 75% for the year [1][2] - Forecasted net profits for 2024, 2025, and 2026 are 277 million yuan, 354 million yuan, and 445 million yuan, respectively, with corresponding P/E ratios of 49.3, 38.6, and 30.7 [2][3]

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].