Core Viewpoint - The company adopts a dual-driven product strategy focusing on wireless communication modules and IoT solutions, aiming to create differentiated and innovative core competitive advantages in the market [2]. Group 1: Product Strategy - The company develops customized solutions in vertical industries, including smart modules, high-performance modules, smart cockpits, FWA, and IoT, to enhance its competitive edge [2]. - The company has extensive experience in product development and industry application in the smart module and solution field, with ongoing investments in high-performance modules and generative AI applications [2]. - The company offers module products with heterogeneous computing power ranging from 0.2T to 48T, supporting large model deployment and operation at the edge, adaptable to various communication methods like 5G, Wi-Fi, and Gigabit Ethernet [2]. Group 2: R&D Investment - In 2024, the company's R&D investment is projected to be 256 million yuan, accounting for 8.69% of its revenue, reflecting a strong commitment to enhancing product and technology competitiveness [3]. - The company focuses its R&D efforts on high-performance module applications, 4G/5G smart cockpit modules, automotive-grade 5G+V2X modules, cockpit computing modules, and edge large model deployment and optimization [3]. Group 3: Corporate Actions - The company submitted its application for the issuance of overseas listed shares (H shares) to the China Securities Regulatory Commission, which has been accepted, indicating plans for listing on the Hong Kong Stock Exchange [4]. - The company approved a stock option and restricted stock incentive plan, granting 500,000 restricted shares at a price of 22.84 yuan per share and 500,000 stock options at an exercise price of 45.67 yuan per option to eligible participants [5].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [5]. Core Views - The company adopts a dual-driven product strategy focusing on wireless communication modules and IoT solutions, which creates a competitive advantage through customized solutions for various vertical industries [1]. - The company is committed to high R&D investment, with an allocation of 256 million yuan for 2024, representing 8.69% of revenue, aimed at enhancing product and technological competitiveness [2]. - The company has submitted its application for overseas listing (H shares) to the China Securities Regulatory Commission, indicating plans for expansion and increased market presence [2]. - The company has implemented an incentive plan granting stock options and restricted stocks to key personnel, which may enhance employee motivation and align interests with shareholders [3]. - The forecast for the company's net profit has been revised upwards for 2025 and 2026, with expected profits of 182 million yuan and 267 million yuan respectively, reflecting a strong growth trajectory driven by AI applications and product iterations [3]. Financial Summary - The company’s revenue is projected to grow from 2,147 million yuan in 2023 to 5,556 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 17.79% [4][7]. - The net profit is expected to increase significantly from 65 million yuan in 2023 to 357 million yuan in 2027, indicating a robust growth rate [4][7]. - The company’s earnings per share (EPS) is forecasted to rise from 0.25 yuan in 2023 to 1.36 yuan in 2027, reflecting improved profitability [4][7]. - The price-to-earnings (P/E) ratio is projected to decrease from 187 in 2023 to 34 in 2027, suggesting a more attractive valuation over time [4][10]. Key Financial Metrics - The gross margin is expected to stabilize around 17.5% to 18.8% from 2025 to 2027, indicating a focus on maintaining profitability despite competitive pressures [9]. - The return on equity (ROE) is projected to improve from 4.4% in 2023 to 15.8% in 2027, reflecting enhanced efficiency in generating profits from equity [9]. - The company’s total assets are anticipated to grow from 2,145 million yuan in 2023 to 3,696 million yuan in 2027, indicating a strengthening balance sheet [8].