Appo(SH:688007) Changjiang Securities·2025-09-04 08:43Investment Rating - The investment rating for the company is "Buy" and it is maintained [8] Core Views - The company is undergoing a critical business transformation period, facing temporary operational pressure. In the first half of 2025, the company achieved revenue of 961 million yuan, a year-on-year decline of 11.09%, and a net profit attributable to shareholders of -131 million yuan, with a non-recurring net profit of -46 million yuan. In the second quarter of 2025 alone, revenue was 500 million yuan, down 21.41% year-on-year, with a net profit of -110 million yuan and a non-recurring net profit of -22 million yuan [2][5] Summary by Sections Business Performance - In the first half of 2025, the company's revenue decreased by 11.09% year-on-year, while the second quarter saw a more significant decline of 21.41%. The company is focusing on solidifying its high-margin cinema and specialized display businesses while adjusting its market strategy for the automotive sector to avoid ineffective competition [12] Revenue Breakdown - The cinema business showed stable growth, generating 288 million yuan in revenue, a year-on-year increase of 7.48%. The company has installed 41 LED screens, leading the market in new screen installations [12] R&D and Innovation - The company is increasing its investment in R&D, with a gross margin of 26.91% in the first half of 2025, down 3.39 percentage points year-on-year. The company has filed 41 new patents in AR and AI fields, totaling 266 patents, and 60 new patents in automotive optical technology, totaling 291 patents [12] Future Outlook - The laser display industry is expected to maintain a good growth trend, and the smart cockpit market has promising prospects. The company is expected to continue reducing losses in its consumer business and has secured high-quality contracts with several automotive manufacturers, indicating a potential for rapid expansion [12]