Investment Rating - The industry investment rating is "Recommended (Maintain)" [1] Core Viewpoints - The light industry sector is expected to become a significant node in the AI industry chain, with various sub-sectors such as eyewear and toys already implementing AI applications. Companies deeply involved in the AI supply chain are likely to benefit from future industry growth [9][3]. - Specific sub-sectors benefiting from AI include eyewear, mattresses, sports, and toys, which are recommended for investment focus [3][9]. Summary by Sections AI Eyewear - AI eyewear is entering a product explosion phase, with significant market response to products like Ray Ban Meta, which achieved a quarterly sales volume of 680,000 units in Q4 2024. Global sales of AI eyewear are projected to reach 1.5 million units in 2024, a year-on-year increase of 533% [17][20]. - The market for AI eyewear is dominated by models with cameras, accounting for 94% of sales, primarily driven by the success of Ray Ban Meta [21][23]. - The cost structure of AI eyewear shows that lenses and frames account for about 8% of the total cost, with potential for significant value enhancement through advanced technologies [28][29]. AI Mattresses - AI mattresses integrate AI technology to monitor sleep data and adjust firmness and support based on user needs, addressing the growing sleep issues in modern society. The global market for AI mattresses was approximately $1.7 billion in 2023, with a projected CAGR of 5.6% from 2024 to 2030 [44][46]. - The market is still in its early stages, with intense competition and a focus on consumer education to enhance awareness and acceptance of AI mattress technology [48][50]. AI Sports and Fitness - The AI sports fitness market is characterized by two business models: one targeting consumers through apps and equipment, and the other targeting gyms with AI fitness devices. The market is expected to grow rapidly, with the Chinese smart fitness market projected to reach 82 billion yuan by 2025 [65][66]. - The penetration of AI fitness solutions is low but growing, with significant potential for expansion as consumer awareness increases and technology becomes more accessible [63][66].

Investment Rating - The report assigns a "Buy" rating for the company [10]. Core Insights - The company, as a leading player in the mattress industry, is expected to benefit from the current home furnishing subsidies, which are likely to enhance industry demand and improve market dynamics. The company's retail transformation and marketing strategy optimization are anticipated to broaden its customer base and increase market share [2][4][8]. Industry Overview - The mattress industry is characterized by low concentration and is projected to reach approximately 79 billion yuan in 2024, nearly matching the scale of 2018. The market share of the company is estimated to be around 6% in 2023, with a trend of increasing share. The overall concentration of the mattress industry (CR4) is about 19% in 2023, compared to 45% in the U.S. in 2020, indicating room for growth [4][16][21]. Company Profile - The company is a mid-to-high-end mattress brand, focusing on a comprehensive range of sleep-related products. In the first half of 2024, the revenue breakdown is expected to be 47% from mattresses, 30% from bed frames, 8% from sofas, and 6% from bedding products. The company operates through four main divisions, each targeting specific market segments [5][42][45]. Retail Transformation - The company is enhancing its retail strategy by broadening its price range and optimizing channel management. The main price range for mattresses is between 6,000 to 15,000 yuan offline and 3,000 to 5,000 yuan online. The company is also focusing on multi-channel strategies to capture traffic, with e-commerce revenue growth of 29% in 2023 and 35% in the first half of 2024 [6][52][59]. Product Innovation - The company is leveraging AI technology to enhance its product offerings, particularly in smart mattresses, which have seen sales exceed 100 million yuan in 2024. The penetration rate of smart mattresses in China remains low, suggesting significant growth potential [6][41]. International Expansion - The company is actively pursuing international growth opportunities through cross-border e-commerce and acquisitions of overseas brands, which are expected to contribute to its revenue growth [7][8]. Financial Performance - The company reported revenues of 5.58 billion yuan and a net profit of 800 million yuan in 2023, with a compound annual growth rate (CAGR) of 12% and 30% respectively since 2018. The projected net profits for 2024 and 2025 are 810 million yuan and 890 million yuan, reflecting growth rates of 1% and 10% respectively [5][59].