Investment Rating - The investment rating for the company is "Accumulate" [3] Core Views - The company has shown significant profit recovery, with a net profit of 0.63 billion yuan in Q1 2025, representing a year-on-year increase of 337.45%. However, the revenue slightly decreased by 1.89% year-on-year to 8.1 billion yuan, primarily due to weak domestic sales performance [1][2] - The company is expanding its technology and product applications, particularly in the automotive projection business, having achieved a breakthrough from 0 to 1 in 2024 with 8 designated projects in smart cockpits and intelligent headlights. This new business is expected to contribute to revenue growth in 2025 [1][2] - The gross margin for Q1 2025 was 34.01%, an increase of 5.96 percentage points year-on-year, while the net margin was 7.7%, up by 5.98 percentage points year-on-year. This improvement is attributed to enhanced operational efficiency and cost management [1] Financial Summary - In Q1 2025, the company reported a negative net cash flow from operating activities of -1.5 billion yuan, a decline of 202.78% year-on-year, mainly due to changes in the settlement cycle and increased payments for inventory [2] - The company maintains a forecast for net profits of 3.5 billion yuan, 5.1 billion yuan, and 6.4 billion yuan for the years 2025 to 2027, with corresponding dynamic P/E ratios of 25.8x, 17.5x, and 14.1x [2] - The total market capitalization of the company is approximately 8,982.40 million yuan, with a total share capital of 70 million shares [4]

Core Viewpoint - In 2024, the company reported a revenue of 3.405 billion yuan, a net profit attributable to shareholders of 120 million yuan, and a net profit excluding non-recurring items of 92 million yuan, showing a year-on-year decline in revenue and net profit but an increase in net profit excluding non-recurring items [1] Revenue Summary - In Q4 2024, the company achieved revenue of 1.123 billion yuan, with a year-on-year decline of 1.02% [1] - Revenue from projection machine products, accessory products, and internet value-added services in 2024 was 2.999 billion yuan, 170 million yuan, and 146 million yuan respectively, with year-on-year changes of -6.63%, +0.32%, and -1.20% [1] Product Performance - Revenue from long-focus projection, innovative products, and ultra-short-focus projection in 2024 was 2.768 billion yuan, 122 million yuan, and 108 million yuan respectively, with year-on-year changes of -3.67%, -35.80%, and -26.75% [2] Geographic Performance - Domestic revenue in 2024 was 2.229 billion yuan, while overseas revenue was 1.086 billion yuan, showing year-on-year changes of -14.80% and +18.94% respectively [3] Sales Model Performance - Online and offline sales revenue in 2024 was 2.170 billion yuan and 1.145 billion yuan respectively, with year-on-year changes of -13.51% and +12.24% [4] Gross Margin Analysis - The company's gross margin in 2024 was 31.19%, a decrease of 0.06 percentage points year-on-year [4] - In Q4 2024, the gross margin was 36.11%, an increase of 8.2 percentage points year-on-year [4] - Gross margins for projection machine products, accessory products, and internet value-added services were 26.59%, 52.15%, and 95.52% respectively, with year-on-year changes of -0.99, +2.16, and +2.39 percentage points [4] Sales Volume - Sales volume for long-focus projection, ultra-short-focus projection, and innovative products in 2024 were 104.14 thousand units, 1.62 thousand units, and 3.16 thousand units respectively [7] Expense Ratio - The expense ratios for sales, management, R&D, and financial expenses in 2024 were 17.56%, 3.42%, 10.80%, and -1.46% respectively, with year-on-year changes of -0.57%, -0.80%, +0.08%, and -0.57 percentage points [8] Profitability - The company's net profit margin for 2024 was 3.52%, and for Q4 2024, it was 14.28%, with year-on-year increases of 0.15 and 11.27 percentage points respectively [9] Investment Outlook - The company is a leader in the projection industry, with dual brands "XGIMI" and "Happy Planet" focusing on DLP and LCD technology routes, which may enhance market share. The launch of the vehicle-mounted projection business marks a new growth curve [9] - Projected net profits for 2025-2027 are 391 million yuan, 542 million yuan, and 680 million yuan respectively, with corresponding PE ratios of 22.40, 16.16, and 12.89 times [9]