Investment Rating - The investment rating for the company is "Buy" with a target price of 11.13 RMB [7][8]. Core Insights - The company achieved a revenue of 10.212 billion RMB in 2024, a year-on-year increase of 3.69%, while the net profit attributable to shareholders was a loss of 5.53 billion RMB, which is a significant improvement of 44.29% year-on-year [1][2]. - In Q1 2025, the company reported a revenue of 2.177 billion RMB, a decrease of 11.71% year-on-year, but managed to turn a profit with a net profit of 0.03 billion RMB [1][2]. - The strong growth in the automotive optical business, which saw a year-on-year increase of 120%, helped offset declines in other segments, particularly in touch display and terminal manufacturing [1][2][3]. - The company is expected to benefit from the rapid growth in automotive optical demand, with projections indicating that revenue from this segment could exceed 3.5 billion RMB in 2025, increasing its share of total revenue from 20.2% in 2024 to 31.2% in 2025 [3][4]. Summary by Sections Financial Performance - In 2024, the optical lens and module business generated revenue of 4.156 billion RMB, a year-on-year increase of 34.2%, with automotive optical revenue reaching 2.06 billion RMB [2]. - The touch display business saw a significant decline, with revenue dropping to 2.560 billion RMB, a decrease of 17.57% year-on-year [2]. - The company incurred a total impairment loss of approximately 420 million RMB in the touch display segment, contributing to the overall loss for the year [2]. Future Outlook - The automotive optical business is projected to grow rapidly, driven by the increasing adoption of advanced driver-assistance systems (ADAS) in vehicles, with the number of cameras per vehicle expected to rise significantly [3]. - The company plans to expand its camera applications into AR/VR and humanoid robots, indicating potential for diversification and growth in new markets [3]. Valuation and Estimates - Revenue forecasts for 2025 and 2026 are maintained at 11.338 billion RMB and 12.341 billion RMB, respectively, with a new estimate for 2027 at 13.334 billion RMB [4]. - The net profit estimates for 2025 and 2026 have been adjusted downwards to 200 million RMB and 370 million RMB, respectively, due to anticipated increases in operating expenses [4]. - The company is valued at a price-to-earnings ratio of 59.6x for 2025, with the optical business commanding a higher multiple of 36.5x [4][13].