Group 1 - The core strategy of the company is the "1+2+X" approach, focusing on smartphones while expanding into tablets, smart wearables, and emerging sectors like AIPC and AI glasses [1] - The company has over 20 years of experience in the intelligent terminal ODM industry, evolving from feature phone IDH to a comprehensive ODM model [1] - The company aims for an average annual revenue growth of approximately 10% and a net profit growth of about 20% from 2025 to 2028 [1] Group 2 - AI is driving innovation in the intelligent terminal sector, with AI smartphones and AIPC serving as key platforms for human-computer interaction [2] - The ODM industry is seeing an increase in market share for leading companies, with a focus on cost control and a more diverse range of products [2] - The gross margin of the ODM industry is significantly affected by fluctuations in upstream raw material prices, with a recovery expected starting from Q4 2024 [2] Group 3 - The company is set to become the largest mobile ODM manufacturer globally by 2024, with a significant recovery in gross margins expected [3] - The company has established a strong position in the AI glasses market, with over 2 million units shipped to major clients by 2024 [3] - The company is expanding its presence in the automotive electronics sector, producing smart control screens and wireless charging products for both domestic and international clients [3]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on expected performance in the AI wave [4][6]. Core Insights - The company reported a revenue of 109.88 billion yuan for 2024, a year-on-year increase of 28.76%, and a net profit attributable to shareholders of 2.93 billion yuan, up 8.10% year-on-year [1]. - In Q1 2025, the company achieved a revenue of 34.99 billion yuan, reflecting a significant year-on-year growth of 115.65%, primarily driven by the ramp-up of high-performance computing products [1]. - The gross margin for Q1 2025 was 8.42%, which decreased by 5.40 percentage points year-on-year due to the lower margins of high-performance computing products, although it showed a slight increase of 0.15 percentage points compared to the previous quarter [1]. Summary by Sections Intelligent Terminal Business - The intelligent terminal segment generated revenue of 35.32 billion yuan in 2024, a growth of 17.19%, accounting for 32.14% of total revenue, with a gross margin of 9% [2]. - The company completed the acquisition of 80% of Yiluda, which is expected to enhance its customer base in the wearable technology sector [2]. High-Performance Computing and Networking - The high-performance computing segment achieved revenue of 63.22 billion yuan in 2024, a year-on-year increase of 28.79%, representing 57.54% of total revenue, with a gross margin of 7.77% [3]. - The company successfully delivered high-performance network switches aimed at AI clusters, becoming a core supplier for several leading domestic cloud service providers [3]. Automotive Electronics and AIoT - The automotive and industrial products segment saw revenue of 1.56 billion yuan in 2024, a remarkable growth of 91.09%, with a gross margin of 19.20% [4]. - The AIoT and other businesses generated revenue of 4.67 billion yuan, a substantial increase of 187.93%, with a gross margin of 15.29% [4]. Financial Forecast - The company is expected to achieve net profits of 3.68 billion yuan, 4.59 billion yuan, and 5.54 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 18, 15, and 12 times [5][7].