Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's profitability is continuously recovering, with expectations for the vehicle-mounted business to ramp up [1] - The company achieved a revenue of 3.405 billion yuan in 2024, a year-on-year decrease of 4.27%, and a net profit of 120.14 million yuan, a year-on-year decrease of 0.30% [7] - The company is actively expanding its overseas market while benefiting from domestic demand recovery due to national subsidies [7] - The company has made significant progress in cost control, leading to improved profitability [7] - The company is expected to see performance growth from its vehicle-mounted and commercial projection products [7] Financial Summary - Total revenue forecast for 2023A is 3.557 billion yuan, with a projected increase to 4.258 billion yuan in 2025E, representing a year-on-year growth of 25.06% [1] - The net profit forecast for 2023A is 120.50 million yuan, with a significant increase to 429.61 million yuan in 2025E, reflecting a year-on-year growth of 257.58% [1] - The latest diluted EPS is projected to be 6.14 yuan in 2025E, with a corresponding P/E ratio of 20.91 [1] - The company’s gross margin is expected to improve from 31.19% in 2024A to 34.24% in 2025E [8] - The return on equity (ROE) is projected to increase from 4.08% in 2024A to 13.96% in 2025E [8]

Core Viewpoint - The article highlights the significant advancements and strategic focus of XGIMI Technology in the automotive projection market, emphasizing its competitive advantages and growth potential in this emerging sector [2][3][5]. Group 1: Company Overview - XGIMI Technology has established itself as a leading player in the global projection equipment industry, maintaining the top position in China's projector market for seven consecutive years and achieving the highest shipment volume in the global home projection market for two years [3][5]. - The company launched its automotive division in 2024, focusing on in-car projection and smart lighting solutions, and has secured eight contracts with well-known automotive industry players [3][4]. Group 2: Competitive Advantages - XGIMI's four key advantages in the automotive sector include market perception capability, hardware expertise, software innovation, and a complete closed-loop production capacity [3][4]. - The company is the only domestic firm capable of delivering a full range of optical solutions from lenses to complete systems, which provides a significant edge in the industry [4]. Group 3: Market Potential - The automotive projection market is expected to grow significantly, driven by the trends of electrification and intelligence in the automotive industry, with projections indicating it could become the largest independent segment for projection optical products [5][6]. - The market for automotive HUDs, smart lights, and in-car projection is projected to reach substantial sizes by 2025, with estimates of 192 billion yuan, 108 billion yuan, and 240 billion yuan respectively [6]. - The automotive projection market is anticipated to evolve into a core interactive terminal for smart cockpits, with potential market size exceeding 100 billion yuan in the coming years [5][6][7].

Core Viewpoint - The article highlights the emergence of XGIMI Technology in the automotive display market as a response to declining profits in the home projector sector, showcasing its innovative solutions at the 2025 Shanghai International Auto Show [1] Group 1: Company Performance - XGIMI reported a 146.81% year-on-year decline in net profit for the first three quarters of 2024, but achieved a turnaround in Q4 with a 375% increase in net profit to 162 million yuan [1] - The company aims to create a second growth curve by entering the automotive display market, having received development notifications from BAIC New Energy [1][10] Group 2: Product Offerings - XGIMI showcased three key in-car solutions: multi-projection cockpit, sky projection, and side window projection, all designed to enhance in-car entertainment experiences [2] - The outdoor solutions include DLP smart headlights, pixel light modules, and dynamic ground projection, addressing traditional DLP headlight color mixing issues and enhancing user experience [5] Group 3: Market Strategy - The automotive display market is seen as a new frontier for XGIMI, with the company establishing a dedicated team of over 300 people and committing to not share resources with its home projector division [9][11] - XGIMI's entry into the automotive sector is driven by the saturation and price wars in the home projector market, with a focus on product differentiation rather than price competition [12] Group 4: Industry Context - The automotive industry in China reached a total output value of 11 trillion yuan in 2023, surpassing real estate for the first time, indicating a significant market opportunity for XGIMI [10] - The global projector market is projected to see a 7.5% increase in shipment volume in 2024, but a 6.2% decline in sales revenue, highlighting the challenges faced in the home segment [11]