Core Viewpoint - The article discusses the growth opportunities and technological trends in various sectors such as automotive, mobile, XR, and robotics, highlighting the company's strategic positioning and expected market developments. Group 1: Automotive Sector - The rapid development of intelligent driving is expected to drive significant growth in the automotive lens and camera module market, with the global demand for automotive lenses projected to exceed 400 million units by 2025 [1] - The company anticipates an increase in the number of lenses per new vehicle from 3.5 to over 4.3 between 2024 and 2025 [1] - The company aims to become one of the top three global providers of automotive vision solutions within 3-5 years, focusing on product structure upgrades and international market expansion [1] Group 2: Mobile Sector - The company expects a slight increase in global smartphone shipments by 0.2% year-on-year to 1.175 billion units in 2025, with the Chinese market projected to grow by 2.2% to 284 million units [2] - Demand for mobile camera modules is anticipated to rise by 7.1% year-on-year, driven by trends towards miniaturization, lightweight design, and high-performance video capabilities [2] - The company is well-positioned to improve its product structure due to its core platform technology and manufacturing capabilities [2] Group 3: XR and Robotics - The XR market is entering a rapid growth phase, with MR headsets and smart glasses expected to exceed 10 million units in shipments by 2025-2026 [3] - The company has established a comprehensive optical product coverage for XR applications and is focusing on AI applications to enhance hardware capabilities [3] - In the robotics sector, the company has secured over 2 billion in project orders and is transitioning from providing vision solutions to offering complete visual-based robotic system solutions [3] Group 4: Investment Outlook - The company is expected to benefit from a mild global economic recovery and innovations in high-end optical imaging for Android devices, alongside growth in automotive and XR sectors [4] - Revenue projections for the company from 2025 to 2027 indicate significant growth potential, with expectations for net profit and earnings per share to align with current market valuations [4]

Investment Rating - The investment rating for the company is "Buy" with a target price of 33.60 RMB [8][5]. Core Views - The company achieved a revenue of 1.034 billion RMB in 2024, representing a year-on-year increase of 37.08%, and a net profit of 221 million RMB, up 22.58% year-on-year. In Q1 2025, the revenue was 256 million RMB, showing a significant growth of 52.92% year-on-year, driven by opportunities in mobile optical innovation, automotive smart driving, and 5G optical communication [2][4]. - The company is expected to maintain strong performance in the second half of 2025, supported by demand for periscope lenses from major mobile clients and automotive optical/laser radar needs. The company is also collaborating with leading global manufacturers in various new fields, which may contribute to long-term performance growth [2][4]. Summary by Sections Financial Performance - In 2024, the optical prism product revenue reached 654 million RMB, a year-on-year increase of 59.01%, primarily due to increased shipments of micro prisms. The gross margin was 37.99%, down 5.15 percentage points year-on-year. The glass aspheric lens revenue was 251 million RMB, up 4.08% year-on-year, with a gross margin of 51.93%, up 5.36 percentage points year-on-year. The glass wafer revenue was 73 million RMB, up 38.91% year-on-year, with a gross margin of 16.01% [3][4]. - The company’s total revenue for 2023 was 754.46 million RMB, with a year-on-year growth of 98.35%. The net profit attributable to the parent company was 180.79 million RMB, up 87.27% year-on-year [7]. Business Outlook - The company is well-positioned to benefit from diverse product offerings and long-term customer relationships in consumer electronics, automotive smart driving, and optical communication sectors. The demand for micro prisms is expected to grow due to the introduction of new models by major clients [4][5]. - The company is actively cooperating with leading glass material manufacturers and semiconductor equipment suppliers, positioning itself to capture growth opportunities in the AR and semiconductor fields [4]. Valuation - The projected net profits for 2025-2027 are 339 million RMB, 425 million RMB, and 534 million RMB, respectively. The corresponding EPS for these years is expected to be 0.84 RMB, 1.05 RMB, and 1.32 RMB [5][7]. - The company is assigned a PE ratio of 40 times for 2025, reflecting its strong growth potential in new downstream markets and products [5][8].