Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - The report highlights the significant growth of the company "Insta360" in the consumer-grade camera market, with a projected revenue increase of 32.38% to 57.10% for the first half of 2025 compared to the same period in 2024 [4][19] - The company has maintained a strong market position, holding a 67.2% share of the global consumer-grade panoramic camera market in 2023, with expectations to increase this to 81.7% in 2024 [7][19] - The report emphasizes the importance of continuous innovation and product iteration in maintaining competitive advantages within the industry [7][35] Summary by Sections 1. Panoramic Camera Industry Chain Overview - Insta360's financial data indicates a revenue of 1.355 billion yuan for Q1 2025, a 40.70% increase from 0.963 billion yuan in Q1 2024 [4][17] - The company expects to achieve a revenue range of 3.214 billion to 3.815 billion yuan for the first half of 2025, with net profit projections between 494.35 million and 583.22 million yuan [19][18] - Consumer-grade products account for nearly 90% of the company's revenue, with the X series panoramic cameras contributing over 50% [4][21] 2. Market Performance Review - The report notes a decline in major indices, with the Shenwan Electronics Index dropping by 2.17% during the week of May 19 to May 23, 2025 [4] - The best-performing sector was LED, with a decline of only 0.46%, while the integrated circuit packaging and testing sector saw a decline of 3.5% [4] 3. Product Composition and Application - The X series, Go series, and Ace series are the main consumer-grade products, contributing 52.74%, 16.30%, and 10.44% to the company's revenue in 2024, respectively [35][36] - The X series features advanced capabilities such as 360° panoramic shooting and high-resolution video recording, appealing to various outdoor activities [5][36] - The Ace series has gained traction as a versatile action camera, while the Go series is designed for ease of use and portability [5][39] 4. Supply Chain and Procurement - Key suppliers include Wenyue Technology for ICs and Hongjing Optoelectronics for lens modules, with procurement costs for ICs and lens modules constituting 28.82% and 24.93% of total procurement costs, respectively [7][8] - The report indicates a significant increase in the procurement share of Hongjing Optoelectronics for lens modules from 39.95% in 2022 to 72.87% in 2023 [8] 5. Competitive Landscape - Insta360 is positioned as a market leader in the panoramic camera sector, with a competitive edge due to its innovative product lines and extensive accessory offerings [7][36] - The report anticipates that the company's market dominance will continue, supported by ongoing research and development efforts [7][19]

Group 1 - The company plans to publicly issue 41 million shares, accounting for 10.22% of the total share capital after issuance [1] - Employees' stock management plan will participate in strategic allocation of up to 10% of the public offering, totaling 4.1 million shares, with a subscription amount not exceeding 137 million yuan [1] - Zhongcai Investment will participate in the strategic allocation with an initial investment ratio of 5%, equating to 2.05 million shares [1] Group 2 - The company has focused on the research, production, and sales of smart imaging devices such as panoramic cameras and action cameras since its establishment [1] - The company expects net profits attributable to shareholders for 2022, 2023, and 2024 to be 407 million yuan, 830 million yuan, and 995 million yuan respectively [2] - For the first half of 2025, the company anticipates revenue between 3.214 billion yuan and 3.815 billion yuan, representing a year-on-year change of approximately 32.38% to 57.10% [2] Group 3 - The funds raised from this issuance, after deducting issuance costs, will be invested in the construction of a smart imaging device production base and a research and development center in Shenzhen, totaling approximately 464 million yuan [2] - The smart imaging device production base construction project is expected to be completed and put into use in 2025, while the Shenzhen R&D center project has not yet commenced [2] - The company's products are marketed globally under the brand "Insta360," utilizing both online and offline sales channels [1]