USC(SH:688403) China Securities·2025-05-18 15:30Investment Rating - The report maintains a strong buy rating for the smart imaging equipment industry, particularly recommending the leading brand Insta360 in the global panoramic sports camera sector [3]. Core Insights - The smart imaging equipment industry has a promising outlook, with a compound annual growth rate (CAGR) expected to maintain over 10%. The industry is witnessing a shift from niche to mainstream markets, driven by expanding application scenarios and the rise of domestic brands like Insta360, which have disrupted the foreign monopoly [2][20]. - Insta360 has achieved significant revenue and profit growth, with a CAGR of 68% in revenue and 126% in net profit over the past six years. The company has maintained its position as the global leader in the panoramic camera market for seven consecutive years [2][3]. Summary by Sections 1. Industry Outlook - The smart imaging equipment market is expanding, with the retail market size projected to grow from 16.43 billion yuan in 2017 to 52.90 billion yuan by 2027, reflecting a CAGR of 13.7% [22]. - The outdoor sports enthusiast population is expected to grow from 1.22 billion in 2023 to 1.77 billion by 2027, with the penetration rate of smart imaging devices currently below 4% [24][26]. - The global retail market for action cameras is projected to grow from 13.93 billion yuan in 2017 to 51.35 billion yuan by 2027, with a CAGR of 13.9% [28]. 2. Insta360's Leadership - Insta360's revenue growth significantly outpaces competitors, with a leading profit margin and rapid product iteration. The company has effectively addressed user pain points through technological innovation [3][41]. - The brand has successfully built a global presence through localized content marketing, surpassing GoPro in brand recognition on social media platforms [3][15]. 3. Investment Recommendations - The report suggests focusing on the growth of upstream suppliers, particularly in optical lens and image sensor sectors, highlighting companies like Sunny Optical Technology, OFILM, and Lianchuang Electronics as potential investment opportunities [3][49]. - The report emphasizes the importance of domestic suppliers in the supply chain, noting a clear trend towards domestic substitution for key components like optical lenses and sensors [49][56].