BOE VARITRONIX(HK:00710) GOLDEN SUN SECURITIES·2026-01-25 06:31Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Insights - The company is actively expanding its production capacity with the construction of a new manufacturing base, expected to add over 10 million units of annual production capacity by the end of 2026 [2]. - The introduction of the HERO 2.0 smart cockpit at CES 2026 showcases the company's integration of AI technology, enhancing visual, auditory, and interactive experiences [1]. - The company is transitioning from a component supplier to a solution provider through continuous product and service iterations [1]. Financial Performance - The projected total revenue for 2025-2027 is approximately HKD 14,002 million, HKD 15,451 million, and HKD 17,498 million, reflecting year-on-year growth rates of +4%, +10%, and +13% respectively [3][4]. - The expected net profit for the same period is HKD 373 million, HKD 467 million, and HKD 546 million, with year-on-year changes of -5%, +25%, and +17% respectively [3][4]. - The company's P/E ratios for 2025-2027 are projected to be 10.5x, 8.4x, and 7.2x [3]. Production and Capacity Expansion - The new manufacturing base in Heyuan will include smart production lines and R&D centers, further solidifying the company's market leadership in automotive display shipments [2]. - The company has established a global production and supply service system with bases in Heyuan, Chengdu, and Vietnam [2]. Product Innovation - The HERO 2.0 cockpit features advanced visual technology with MicroLED PHUD, achieving 50,000 nits brightness and 115% NTSC color gamut [1]. - The introduction of AI-powered digital amplifiers and multi-modal interaction methods enhances user experience within the cockpit [1].