Shenwan Hongyuan Securities·2025-07-12 14:29Investment Rating - The report initiates coverage with a "Buy" rating for the company, highlighting its focus on differentiated and high-end optical needs in various sectors including panoramic/sport cameras, smart home, and smart automotive applications [8][9]. Core Insights - The company has established itself as a key supplier in the optical lens and camera module market, with over 70% of the camera module procurement share from a major client, and a global market share of over 10% in smart home optical lenses [8][9]. - The company has a strong technical and precision manufacturing advantage, with a comprehensive imaging solution development approach that integrates optics, mechanics, electronics, and algorithms [8][9]. - The company is expected to double its production capacity to 35 million lenses and modules annually after the completion of its fundraising projects, with projected net profits for 2025-2027 showing significant year-on-year growth [9][10]. Financial Performance - The company's total revenue is projected to grow from 1,092 million yuan in 2024 to 2,531 million yuan in 2027, with a compound annual growth rate (CAGR) of 41.2% [2]. - The net profit attributable to the parent company is expected to increase from 165 million yuan in 2024 to 367 million yuan in 2027, reflecting a CAGR of 41.9% [2]. - The earnings per share are forecasted to rise from 3.47 yuan in 2024 to 4.13 yuan in 2027, indicating a strong profitability trend [2]. Market Position and Strategy - The company has a well-defined "3+N" strategy, focusing on three main business areas while exploring new emerging fields such as AI hardware, robotics, and industrial inspection [20][27]. - In the panoramic/sport camera sector, the company has seen significant growth, with revenues increasing from 30 million yuan in 2020 to 350 million yuan in 2023, achieving a CAGR of 127% [51][52]. - The automotive vision segment is expected to see substantial growth, with the global market for automotive cameras projected to increase significantly from 340 million units in 2025 to 870 million units by 2040 [8][9]. Customer Base and Partnerships - The company has established strong partnerships with leading clients in various sectors, including major automotive manufacturers and high-end smart home brands, enhancing its market position and customer resource base [20][25]. - The company has been recognized for its core technology and product quality, which has led to a stable supply chain position with its key client, ensuring competitive advantages in the market [11][12].