自主研发UDM模式，创新高端制造

Investment Rating - The investment rating for the company is "Buy" (initial coverage) [1] Core Insights - The company is based on its self-developed UDM model, which creates a highly informationized and automated intelligent manufacturing system, providing R&D and production of smart control components, innovative consumer electronics, health environment, and automotive electronics [1] - The UDM model offers significant advantages such as higher levels of informatization and automation, enhanced customer service experience, stronger communication intensity, comprehensive delivery integration, and full industry chain combination [1] - The company is expected to see high growth driven by major products, particularly in the electronic cigarette business, which is anticipated to ramp up significantly [1] Summary by Sections 1. Self-developed UDM Model, Innovative High-end Manufacturing - The company is a leader in industrial internet and civil IoT, continuously expanding its diversified business [1] - The ownership structure is concentrated, with outstanding management capabilities [1] - Business operations are steadily improving, awaiting performance recovery [1] 2. Leading UDM Model: "Manufacturing + R&D + Quality" - The UDM model integrates manufacturing, R&D, and quality control, establishing a core barrier for the company [1] 3. Major Products Driving High Growth, Awaiting Electronic Cigarette Business Expansion - Electronic Cigarettes: The global electronic cigarette market is rapidly growing, with PMI's IQOS product expected to commercialize in the US market in Q2 2024, aiming for a 10% market share within five years [1] - Home Engraving Machines: The company is closely tied to Cricut, with significant growth expected as inventory is reduced [1] - Industrial Control: Long-term cooperation with Logitech has led to new project opportunities [1] - Other: The company is actively expanding into automotive electronics, health environment, smart home, and brain-computer interface product lines, with potential for new major products [1] 4. Profit Forecast and Investment Recommendations - Revenue forecasts for 2023-2025 are projected at 39.67 billion, 59.24 billion, and 67.50 billion yuan, with year-on-year changes of -8.7%, 49.3%, and 13.9% respectively [1] - Net profit attributable to the parent company is expected to be 4.69 billion, 7.60 billion, and 9.14 billion yuan, with year-on-year changes of -32.3%, 61.9%, and 20.3% respectively [1] - The company is expected to achieve an EPS of 0.60, 0.97, and 1.17 yuan for 2023-2025, with corresponding PE ratios of 27.30, 16.86, and 14.01 [1]