Core Viewpoint - Hisense is strategically opening over 1,300 core patents related to three-color laser technology to strengthen its industry position and expand the market scale, while also aiming to influence industry standards [2][9][10] Market Trends - The smart projection market, excluding laser TVs, saw a decline in sales volume by 3.9% year-on-year to 2.778 million units in the first half of 2025, with sales revenue dropping by 2.9% to 4.68 billion yuan [3] - The decline in the market is primarily attributed to a significant drop in low-end projector sales, as the market is undergoing a phase of clearing out low-end capacity [4] Product Performance - Despite the overall market contraction, the high-end segment, particularly laser display products, is experiencing growth, with the global laser projection market expected to reach a compound annual growth rate of 23.4% from 2020 to 2025 [4][5] - In the first half of 2025, the shipment of laser TVs over 100 inches in China increased by 177% year-on-year, indicating a shift towards high-quality display products [6] Technological Advancements - The adoption of advanced technologies such as 8K ultra-high definition and HDR Pro is expected to enhance the penetration of laser sources in emerging fields like AR/VR and automotive HUDs [6] - Hisense's three-color laser technology offers superior brightness and color range compared to traditional LED projectors, covering over 90% of the Rec. 2020 color gamut [7][8] Strategic Implications - By opening its patents, Hisense aims to create a dual-driven model of "technology output + complete machine sales," which will stabilize revenue through patent licensing while increasing market share for its products [7][9] - The move is seen as a way to avoid the pitfalls of a "patent jungle," which could hinder technological commercialization and market growth [8][9]

Group 1 - The 2025 Laser Display Technology and Industry Development Conference will officially open in Qingdao with the theme "Boundless" [3] - Hisense will launch the world's first 100-inch rollable laser cinema, the Jiangshan Scroll R1, which was first showcased at the IFA in Berlin on September 5 [3][4] - The Jiangshan Scroll R1 features a unique "Lingyun Roll Screen System," allowing for a fundamental breakthrough in screen form, transforming from a giant private cinema to an artistic installation [4][5] Group 2 - The Jiangshan Scroll R1 integrates IMAX-level picture quality, immersive sound, and artistic cabinet design, enhancing the home entertainment experience [4] - Hisense will also unveil a 150-inch laser TV, the Exploration X1 Ultra, which has received certification as the "only home movie projection device" from the China Film Research Institute [4] - The advancements in display technology signify a revolution in spatial relationships, marking a shift from traditional fixed screens to dynamic, flexible displays [5]

Investment Rating - The investment rating for the company is "Buy" and it is maintained [8] Core Views - The company is undergoing a critical business transformation period, facing temporary operational pressure. In the first half of 2025, the company achieved revenue of 961 million yuan, a year-on-year decline of 11.09%, and a net profit attributable to shareholders of -131 million yuan, with a non-recurring net profit of -46 million yuan. In the second quarter of 2025 alone, revenue was 500 million yuan, down 21.41% year-on-year, with a net profit of -110 million yuan and a non-recurring net profit of -22 million yuan [2][5] Summary by Sections Business Performance - In the first half of 2025, the company's revenue decreased by 11.09% year-on-year, while the second quarter saw a more significant decline of 21.41%. The company is focusing on solidifying its high-margin cinema and specialized display businesses while adjusting its market strategy for the automotive sector to avoid ineffective competition [12] Revenue Breakdown - The cinema business showed stable growth, generating 288 million yuan in revenue, a year-on-year increase of 7.48%. The company has installed 41 LED screens, leading the market in new screen installations [12] R&D and Innovation - The company is increasing its investment in R&D, with a gross margin of 26.91% in the first half of 2025, down 3.39 percentage points year-on-year. The company has filed 41 new patents in AR and AI fields, totaling 266 patents, and 60 new patents in automotive optical technology, totaling 291 patents [12] Future Outlook - The laser display industry is expected to maintain a good growth trend, and the smart cockpit market has promising prospects. The company is expected to continue reducing losses in its consumer business and has secured high-quality contracts with several automotive manufacturers, indicating a potential for rapid expansion [12]

Group 1 - The laser TV market in China is on the verge of a significant breakthrough, with major companies like Hisense planning to expand production and innovate with new products such as curved screen laser TVs and 8K models [1][2] - The market penetration of laser TVs in the 80-inch and above segment has exceeded 58% in the first half of this year, indicating a shift towards larger screen formats [1][2] - The sales share of laser TVs in the large screen market has increased from 23% in 2017 to 63.5% in 2023, highlighting their growing popularity [2] Group 2 - Hisense and Changhong are leading players in the laser TV sector, with both companies focusing on the localization of key components and technologies [3] - The laser display industry has attracted significant investment, with many innovative companies receiving funding and some planning to go public [3] - The global laser display patent landscape shows that China holds over 50% of the patents, positioning the country favorably in the competitive landscape [5] Group 3 - The laser TV technology is seen as a strategic direction for the display industry, with the potential to replace traditional LCD TVs as costs decrease and market acceptance increases [5][6] - The integration of laser display technology with AIoT is expected to create new market opportunities [3] - The rapid development of laser TVs is driven by consumer trends towards larger, smarter, and higher-end displays, supported by advancements in 5G and ultra-high-definition technologies [6]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved a revenue of 2.419 billion yuan in 2024, representing a year-on-year growth of 9.27%. However, the net profit attributable to shareholders decreased by 72.91% to 27.95 million yuan [2][4]. - The fourth quarter of 2024 saw a revenue of 699 million yuan, a year-on-year increase of 24.21%, while the net profit was -14.99 million yuan, indicating a reduction in losses [2][4]. - In the first quarter of 2025, the company reported a revenue of 461 million yuan, a growth of 3.67%, but the net profit attributable to shareholders fell by 147.95% to -21.36 million yuan [2][4]. Summary by Sections Revenue and Profitability - The company’s revenue for 2024 was 2.419 billion yuan, with a 9.27% increase year-on-year. The core components and complete machine business grew by 11.48%, primarily due to the ramp-up of the automotive optical business, which generated 638 million yuan in revenue [11]. - The gross profit margin decreased by 6.85 percentage points in 2024 due to strategic adjustments in the consumer segment and an increase in the proportion of lower-margin automotive business [11]. Business Segments - The automotive optical business is entering a rapid growth phase, with significant orders from well-known domestic and international automotive companies. The first quarter of 2025 saw this segment achieve a revenue of 78.78 million yuan, a year-on-year increase of 64.03% [11]. Financial Forecast - The company forecasts net profits attributable to shareholders of 120 million yuan, 178 million yuan, and 211 million yuan for 2025, 2026, and 2027, respectively [11].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company achieved an operating revenue of 2.419 billion yuan in 2024, representing a year-on-year growth of 9.27%. However, the net profit attributable to shareholders decreased by 72.91% to 27.95 million yuan, and the net profit after deducting non-recurring gains and losses fell by 22.88% to 32.13 million yuan [2][5] - In Q4 2024, the company reported an operating revenue of 699 million yuan, a year-on-year increase of 24.21%, but a net loss of 14.99 million yuan, which was a reduction in loss by 10.38 million yuan compared to the previous year [2][5] - The company’s Q1 2025 operating revenue was 461 million yuan, up 3.67% year-on-year, with a net loss of 21.36 million yuan, a significant decline of 147.95% compared to the same period last year [2][5] Summary by Sections Revenue and Profitability - The company’s revenue growth is driven by the automotive optical business, which entered a phase of rapid production and delivery, achieving 638 million yuan in revenue [12] - The gross margin for 2024 decreased by 6.85 percentage points due to adjustments in the business structure and an increase in the proportion of low-margin automotive business [12] - The company’s operating profit for 2024 was 603 thousand yuan, a reduction in loss of 2.009 million yuan year-on-year [12] Business Outlook - The automotive optical business is expected to accelerate, with the company securing high-quality contracts from several well-known automotive manufacturers [12] - The company anticipates that the C-end business will continue to reduce losses while the automotive business will contribute to rapid overall growth [12] - Forecasted net profits for 2025, 2026, and 2027 are 120 million yuan, 178 million yuan, and 211 million yuan respectively [12]

Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company achieved a total revenue of 2.419 billion yuan in 2024, representing a year-on-year increase of 9.27%, while the net profit attributable to the parent company was 28 million yuan, down 72.91% year-on-year [1] - The company's vehicle-mounted optical business has entered a phase of intensive mass production, generating revenue of 638 million yuan, with a year-on-year growth of 64.03% [2] - The company is actively expanding into emerging applications in the laser industry, showcasing innovative products at major exhibitions [2] Financial Performance Summary - In 2024, the company's gross margin was 28.31%, a decrease of 6.85 percentage points year-on-year, and the net margin was -0.24% [2] - The company plans to distribute a cash dividend of 0.25 yuan per 10 shares to all shareholders, with a payout ratio of 40.86% [1] - The company has adjusted its operating strategy for consumer-end businesses, leading to a decrease in revenue and gross margin from this segment [2] Business Segment Analysis - The cinema business generated nearly 570 million yuan in revenue in 2024, showing stable development, while the professional display business achieved revenue of 392 million yuan, with overseas markets contributing approximately 140 million yuan, a year-on-year increase of 60.47% [2] - The company has secured three high-quality contracts from well-known domestic and international automotive manufacturers in 2025, further enhancing its vehicle-mounted business [2] Future Outlook - The company is expected to see further revenue growth as it expands its vehicle-mounted and emerging laser application sectors, with projected net profits for 2025, 2026, and 2027 being 797.6 million yuan, 1.21 billion yuan, and 1.66 billion yuan respectively [3] - The company maintains a unique ALPD technology with strong barriers to entry, positioning it as a leader in the laser display field [3]

Investment Rating - The report maintains a "Buy" rating for the company [1][7] Core Views - The company has shown steady revenue growth in Q1 2025, with its automotive business entering mass production and delivery stages [1][10] - The company achieved total revenue of 2.419 billion yuan in 2024, a year-on-year increase of 9.27%, but the net profit attributable to shareholders decreased by 72.91% to 28 million yuan [4][9] - In Q1 2025, the company reported total revenue of 461 million yuan, a year-on-year increase of 3.67%, but a net loss of 21 million yuan [4][9] Financial Performance - In Q4 2024, the company recorded revenue of 699 million yuan, a 24.21% increase, and a reduced net loss of 15 million yuan compared to Q4 2023 [5][6] - The core components and complete machine business generated revenue of 2.240 billion yuan in 2024, reflecting an 11.48% year-on-year growth, primarily driven by the automotive optical business entering mass production [5][6] - The gross profit margin for Q4 2024 and Q1 2025 was 22.15% and 25.21%, respectively, both under pressure due to product mix adjustments [6][12] Business Segments - The automotive optical business generated revenue of 638 million yuan in 2024, while the cinema and professional display businesses contributed nearly 570 million yuan and 392 million yuan, respectively [5][6] - The overseas revenue for the professional display business reached approximately 140 million yuan, marking a 60.47% increase [5][6] Future Outlook - The company is expected to benefit from the recovery of the film industry and the growth of the intelligent cockpit market, with projected net profits of 120 million yuan, 180 million yuan, and 215 million yuan for 2025, 2026, and 2027, respectively [7][9] - The estimated earnings per share (EPS) for the next three years are projected to be 0.26 yuan, 0.39 yuan, and 0.47 yuan, with corresponding price-to-earnings (PE) ratios of 55.91, 37.11, and 31.09 [7][9]

Investment Rating - The report maintains a "Buy" rating for the company [1][7] Core Views - The company achieved a total revenue of 2.419 billion yuan in 2024, representing a year-on-year growth of 9.27%, while the net profit attributable to shareholders was 28 million yuan, down 72.91% year-on-year [4][9] - In Q1 2025, the company reported total revenue of 461 million yuan, a year-on-year increase of 3.67%, but a net loss of 21 million yuan [4][5] - The automotive optical business has entered mass production, contributing to revenue growth [1][5] Financial Performance Summary - For Q4 2024, the company recorded revenue of 699 million yuan, up 24.21% year-on-year, with a reduced net loss of 15 million yuan compared to a loss of 25 million yuan in Q4 2023 [5][6] - The core components and complete machine business generated revenue of 2.240 billion yuan in 2024, reflecting an 11.48% year-on-year increase, primarily driven by the automotive optical business [5][6] - The gross profit margin for Q4 2024 and Q1 2025 was 22.15% and 25.21% respectively, both under pressure compared to previous periods [6][9] Business Segment Performance - The automotive optical business revenue reached 638 million yuan in 2024, while the cinema and professional display businesses generated nearly 570 million yuan and 392 million yuan respectively [5][6] - The overseas revenue for the professional display business was approximately 140 million yuan, showing a significant increase of 60.47% [5][6] Regional Performance - In 2024, domestic and overseas revenues were 2.141 billion yuan and 277 million yuan respectively, with domestic revenue growing by 14.93% and overseas revenue declining by 20.81% [5][6] Future Outlook - The company is expected to benefit from the recovery of the film industry and the growth of the intelligent cockpit market, with projected net profits of 120 million yuan, 180 million yuan, and 215 million yuan for 2025, 2026, and 2027 respectively [7][9] - The estimated earnings per share (EPS) for the same years are projected to be 0.26 yuan, 0.39 yuan, and 0.47 yuan, with corresponding price-to-earnings (PE) ratios of 55.91, 37.11, and 31.09 [7][9]

Investment Rating - The investment rating for the company is "Accumulate" [7] Core Views - The company successfully showcased its laser projection technology at the Osaka World Expo, enhancing its international presence and demonstrating China's advanced technological capabilities [2][4] - The company is a leader in the laser display sector, with unique ALPD technology and strong barriers to entry, and is expected to see rapid growth in its automotive business starting in 2024 [4] Financial Summary - Revenue for 2022 was 2,541.14 million, with a projected increase to 3,142.89 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 14.74% [6][14] - The net profit attributable to the parent company is expected to recover from 28.98 million in 2024 to 211.68 million by 2026, indicating a significant growth trajectory [6][14] - The company's earnings per share (EPS) is projected to rise from 0.06 in 2024 to 0.46 in 2026 [6][14] Product and Market Development - The company is set to unveil its vehicle-mounted optical all-scenario exhibition vehicle at the Shanghai Auto Show, showcasing ultra-small laser modules and various integrated solutions for automotive applications [4] - The company continues to innovate in laser applications, expanding into various practical scenarios, including smart homes and robotics [3]