Investment Rating - The report maintains a "Buy" rating for the company with a target price of 8.86 CNY, indicating an expected return of over 20% within the next six months [6]. Core Viewpoints - The company is focusing on the development trends of cryptocurrencies and stablecoins, emphasizing innovation and the integration of digital currency research into its operations [1]. - The company has a significant operational asset base from its investment projects, generating substantial traffic data assets, with projected revenue from four highway projects reaching 1.31 billion CNY in 2024 [1]. - The company is actively expanding into new business areas such as low-altitude economy and smart transportation, with digital information business revenue expected to grow from 317 million CNY in 2023 to 401 million CNY in 2024 [2]. - The company has signed new orders worth 1,030 billion CNY in 2024, reflecting an 8.01% year-on-year increase, with significant growth in municipal and energy sectors [3]. Financial Summary - The company's revenue for 2023 is projected at 74.19 billion CNY, with a growth rate of 13.66%, followed by a decline to 68.82 billion CNY in 2024 [5]. - The net profit attributable to the parent company is expected to be 2.94 billion CNY in 2023, with a slight decrease to 2.84 billion CNY in 2024, before rising to 3.10 billion CNY in 2025 [5]. - The company’s earnings per share (EPS) is forecasted to be 0.93 CNY in 2023, decreasing to 0.90 CNY in 2024, and then increasing to 0.98 CNY in 2025 [5]. - The company’s price-to-earnings (P/E) ratio is projected to be 6.75 in 2023, slightly increasing to 6.98 in 2024, and then decreasing to 6.41 in 2025 [5].

Group 1: R&D Investment and Strategy - The company's R&D investment in 2024 has decreased compared to the previous year, primarily due to project cycle characteristics and resource optimization [2] - The company plans to strategically focus on high-potential areas and implement a dynamic adjustment mechanism for future R&D investments [2] Group 2: Strategic Partnerships - The company has established strategic cooperation with Huawei, focusing on mutual benefits and leveraging each other's strengths in commercial markets and joint solutions [3] - Collaborative projects include the "Smart Gate & Smart Cargo Joint Solution" and the "East China Smart Shore Cargo System" [3] Group 3: Financial Performance - The company's net profit attributable to shareholders is expected to see significant growth in 2024, driven by strategic expansion and internal efficiency improvements [3] - Factors contributing to profit growth include the merger with Huadong Lisheng and a reduction in impairment provisions compared to the previous year [3] Group 4: Market Expansion - The company is pursuing a "domestic-first, overseas-oriented" market strategy, with successful bids for international projects such as the Peru Qian Kai Port information construction project [4] - Future plans include exploring high-quality overseas projects in line with national strategies [4] Group 5: Industry Trends and Positioning - The company is committed to the development of smart transportation, smart cities, and digital economy sectors, enhancing its core competitiveness and market influence [4] - The smart transportation industry is evolving with new technologies like autonomous driving and vehicle-road collaboration, which the company aims to capitalize on [4] Group 6: Value Management and Shareholder Returns - The company emphasizes maximizing shareholder value through steady performance growth and exploring new business opportunities [4] - Plans for profit distribution for the 2024 fiscal year will be disclosed after the annual shareholders' meeting [5] Group 7: Future Outlook - The management expresses confidence in the company's future growth and plans to continuously adjust business structures to enhance competitiveness [6]

Group 1: Business Performance and Goals - The company aims to install 1 million Beidou terminals in 2025, with over 140,000 terminals issued by the end of 2024 [1][5] - The average monthly shipment of Beidou terminals reached 220,000 units by the end of the reporting period [4] - The company has signed contracts for 800,000 key operational vehicles to be equipped with Beidou terminals this year [1][3] Group 2: Revenue and Financial Outlook - The revenue from smart transportation is expected to decline by 50% in 2024 compared to 2023, primarily due to a shift in revenue sources [5] - The company plans to raise a total of 1.1 billion RMB through various financing methods, including a 300 million RMB private placement and a 600 million RMB bank credit [1][17] Group 3: Partnerships and Collaborations - The company is in the initial stages of establishing partnerships with automotive manufacturers for pre-installed Beidou devices [3] - Collaboration with Tianjin Mobile has progressed to the trial installation phase, with large-scale installations expected to begin next month [47] Group 4: Risk Management and Infrastructure - Two risk control centers have been established, with plans to increase the number of centers in 2025 [6] - The company is actively participating in bidding processes across various provinces and cities [2][1] Group 5: Shareholder and Equity Matters - The company is in the process of transferring shares, with ongoing discussions regarding the transfer of equity stakes [12][13] - The company has confirmed income from its cooperation with insurance companies, indicating positive progress in this area [10]

Core Insights - The company focuses on two main sectors: brain-machine interfaces and vehicle-road-cloud technology, aiming to drive the implementation of innovative technologies [2] - The vehicle-road-cloud products are set for short-term deployment, providing comprehensive solutions from road perception to cloud data processing, enhancing smart traffic scenarios [2] - Long-term prospects for brain-machine interface products are promising in medical, educational, and elderly care applications, leveraging the company's expertise in biometric technology [2][3] Vehicle-Road-Cloud Technology - The vehicle-road-cloud technology will improve license plate recognition management efficiency and user experience, accelerating commercialization [2] - The company is also expanding its smart parking operations and leasing business [2] Brain-Machine Interface Market - The brain-machine interface market is expected to grow rapidly, with a projected compound annual growth rate of 25.22% from 2025 to 2029, reaching a market size of $7.63 billion by 2029 [3] - The Chinese market is anticipated to exceed 10 billion yuan by 2028, driven by the aging population and the demand for products addressing cognitive disorders [3] - The market for early screening of elderly diseases, such as Alzheimer's, presents significant opportunities [3] Technical Challenges and Solutions - The brain-machine interface industry faces challenges in signal recognition accuracy and speed due to the complexity of the human brain's neural networks [2] - The company has developed the BioCV TinyML algorithm model to mitigate signal interference and enhance signal quality [2]

Group 1: eCall Market Overview - The domestic eCall market currently lacks compliance with national standards (AECS), while many overseas regions mandate eCall systems as regulatory requirements [2][4] - The company has established a strong early presence in the eCall product field, accumulating extensive certification and project management experience since 2013 [2][3] - As of January 6, 2025, the company received the next-generation NG eCall certification from the EU, becoming one of the first domestic companies to achieve this [2][3] Group 2: Competitive Advantages - The company has a comprehensive competitive edge due to its early layout and multiple certifications across various countries, enabling it to meet overseas customer demands [3] - The company has established long-term partnerships with numerous domestic automotive brands, with products installed in models from SAIC, Chery, Geely, Great Wall, BYD, and NIO, among others [2][3] Group 3: TBOX Product Insights - The TBOX market is expected to grow as smart and connected vehicles increasingly require TBOX for networking capabilities [5] - The TBOX market consists of three main supplier categories: international automotive parts suppliers, suppliers with automotive backgrounds, and third-party suppliers like the company [5] - The company has formed extensive collaborations with leading domestic automakers and is gradually penetrating joint ventures and foreign car manufacturers [5] Group 4: V2X and Future Developments - The company completed the development of V2X-enabled products in 2019, although current penetration rates are low; future demand is expected to rise with government policies and investments [6] - The company is expanding its product offerings in the new energy sector, providing energy monitoring terminals for battery management systems (BMS) to clients like CATL [7] Group 5: Production Capacity and Flexibility - The company has established a highly flexible intelligent manufacturing system capable of meeting automotive-grade product production needs [8] - The production line is responsible for R&D, core component production, and process optimization, ensuring the feasibility of R&D technologies in actual production [8] Group 6: Technical Barriers and Innovation - TBOX products require deep integration of automotive and communication technologies, creating high industry entry barriers [8] - The company emphasizes continuous technological innovation and product iteration, maintaining strong capabilities in R&D, production management, quality control, and supply chain management [8]