GGEC(SZ:002045) CAITONG SECURITIES·2025-10-16 14:32Investment Rating - The investment rating for the company is maintained at "Accumulate" [2] Core Views - The company is expected to benefit from AI-driven terminal innovations and has a forward-looking layout in solid-state batteries, which opens up growth opportunities [8] - The company’s projected net profit for 2025-2027 is estimated at 253 million, 361 million, and 466 million RMB respectively, with corresponding EPS of 0.45, 0.64, and 0.83 RMB [8] - The report highlights the significant advancements in AI capabilities with the release of Apple's M5 chip, which is expected to drive industry innovation [8] Financial Performance Summary - Revenue projections for the company are as follows: - 2023A: 5,933 million RMB - 2024A: 7,901 million RMB - 2025E: 9,858 million RMB - 2026E: 11,949 million RMB - 2027E: 14,044 million RMB - The revenue growth rates are projected at -1.0% for 2023, 33.2% for 2024, 24.8% for 2025, 21.2% for 2026, and 17.5% for 2027 [7] - The net profit for 2023A is 361 million RMB, with a significant increase of 102.3% compared to the previous year, followed by a decline of 29.9% in 2024A [7][9] Product and Market Developments - The company launched the ChatMini smart speaker, which features dual AI capabilities, positioning it well in the AI-driven consumer electronics market [8] - The company is focusing on developing smart hardware products such as AI speakers, AI glasses, AI headphones, and VR/AR devices, with plans for mass production of AI glasses [8] Valuation Metrics - The projected PE ratios for the company are as follows: - 2025E: 38.5 - 2026E: 27.0 - 2027E: 20.9 [7] - The projected PB ratios are: - 2025E: 2.2 - 2026E: 2.0 - 2027E: 1.8 [7]