XGIMI(688696) Soochow Securities·2025-02-25 23:52Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [7]. Core Insights - The report highlights that the domestic smart projection market has faced challenges, with a decline in sales and revenue in 2023. However, the company is adapting its strategy to stabilize existing sales while expanding into new markets, expecting a turnaround in performance by Q4 2024 [7][10]. - The company is well-positioned with a comprehensive product range across all price segments, which is expected to enhance its market share as competition stabilizes and consumer demand is supported by government subsidies [7][11]. - The report anticipates significant growth in overseas markets, driven by the company's strategic expansion and the increasing demand for high-quality, cost-effective smart projection products [7][49]. Summary by Sections 1. Introduction - The smart projection industry in China experienced explosive growth from 2018 to 2022, but faced a downturn in 2023 due to various market pressures. The company is responding by launching new products and focusing on international expansion [10]. 2. Existing Market - The domestic market is expected to stabilize, with government subsidies likely to boost consumer demand. The report notes a projected market size of 10.01 billion yuan for 2024, despite a 4% year-on-year decline [11][12]. - The company has launched products across all price ranges, enhancing its competitive position in the market [25]. 3. Growth Opportunities - The report identifies significant growth potential in international markets, with the company actively expanding its presence in over 100 regions, including Europe and the US. The overseas revenue reached 448 million yuan in H1 2024, marking a 27.95% increase year-on-year [7][49]. - The company is also venturing into the automotive projection market, which is expected to contribute to revenue growth starting in 2025 [7][49]. 4. Financial Forecast and Investment Rating - The company is projected to achieve net profits of 1.22 billion yuan in 2024, 4.30 billion yuan in 2025, and 5.63 billion yuan in 2026, with corresponding year-on-year growth rates of 1.14%, 252.49%, and 31.06% respectively [7][8]. - The report suggests that the company's performance merits a valuation premium, given its expected high growth and strategic initiatives [7].