Core Viewpoint - The company, Tiande Yu (688252), announced a proposed restricted stock incentive plan for 2026, aiming to align the interests of its core team with the company's development by granting 2.8 million shares to 104 key personnel, representing 0.68% of the total share capital as of the announcement date [1] Group 1: Incentive Plan Details - The incentive plan will not reserve any shares and will grant all 2.8 million shares through the initial grant, accounting for 100% of the planned allocation [1] - The incentive recipients include 104 individuals, making up 39.69% of the total workforce as of December 31, 2024, covering directors, senior management, core technical personnel, and key staff [1] - The plan aims to enhance team motivation and creativity, ensuring the effective implementation of the company's development strategy and high-quality achievement of operational goals [1] Group 2: Performance Assessment Criteria - The incentive scheme features a dual assessment system comprising company-level performance and individual performance evaluations, covering the fiscal years 2026 to 2028 [2] - Key performance indicators for the company include revenue growth rate, overall product shipment growth rate, and net profit growth rate, with specific growth targets set for each year [2] - For the 2026 assessment period, the minimum growth rates are set at 20% for revenue and shipment growth, and 30% for net profit, with increasing targets for subsequent years [2] Group 3: Company Performance and R&D - In the first three quarters of 2025, the company achieved revenue of 1.698 billion yuan, a year-on-year increase of 14.44%, and a net profit of 195 million yuan, marking nine consecutive quarters of growth [2] - The company's gross margin has steadily improved, attributed to structural margin enhancements from new product launches [2] - R&D investment reached nearly 150 million yuan in the first three quarters of 2025, reflecting a year-on-year increase of 20.35%, with significant technological breakthroughs in TDDI chips [2] Group 4: Market Position and Product Development - Tiande Yu is a key supplier in the electronic price tag sector, having achieved mass production of a full series of four-color electronic paper driver ICs with built-in rewritable memory [3] - The company has successfully developed narrow border GIP architecture electronic paper driver ICs, applicable not only to electronic price tags but also to innovative applications such as mobile phone back covers [3] - The four-color electronic price tags have reached mass production and become a market mainstream, with ongoing development of multi-color electronic price tag products to support smart retail and IoT applications [3]

Investment Rating - The report maintains a "Buy" rating for the company Tian De Yu (688252) [3] Core Insights - The company reported a revenue of 554 million yuan for Q1 2025, representing a year-on-year increase of 60.52%, and a net profit attributable to shareholders of 71 million yuan, up 116.96% year-on-year [2] - The gross margin for Q1 2025 was 24.46%, an increase of 4.89 percentage points year-on-year [2] - The company's four-color electronic price tag technology has achieved an 80% market share in 2024, with expectations for continued growth in 2025 as the penetration rate of electronic price tags increases [2] - The company is increasing its R&D investment, which reached 47 million yuan in Q1 2025, a 23.06% increase year-on-year, accounting for 8.54% of revenue [2] Financial Forecasts - The company is expected to achieve revenues of 3.0 billion yuan, 4.0 billion yuan, and 5.2 billion yuan in 2025, 2026, and 2027 respectively, with net profits of 373 million yuan, 528 million yuan, and 725 million yuan for the same years [3][5] - The projected growth rates for revenue are 42.82% in 2025, 33.62% in 2026, and 30.06% in 2027 [5] - The earnings per share (EPS) are forecasted to be 0.91 yuan, 1.29 yuan, and 1.77 yuan for 2025, 2026, and 2027 respectively [5]

Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Views - The company is accelerating product iteration and expanding its display driver product categories, with a focus on LCD DDIC, TDDI, and OLED DDIC technologies. The market share for mobile TDDI high refresh and qHD is continuously increasing, and new industrial control chips are expected to be launched in the first half of the year. The company anticipates that the gross margin will gradually improve as the shipment volume of high-margin new products increases [4][5] - The electronic price tag market is experiencing rapid growth, driven by the digital transformation of the global retail industry. The company holds a significant technological advantage in this field, with its four-color electronic price tag technology achieving an 80% market share for new products in 2024. The company is also developing new products to transition from four-color to six-color technology, positioning itself to capitalize on market opportunities [5] Financial Projections - The company is projected to achieve revenues of 2.1 billion, 3.0 billion, and 4.0 billion yuan for the years 2024, 2025, and 2026, respectively. The net profit attributable to the parent company is expected to be 270 million, 390 million, and 530 million yuan for the same years [6][8] - The revenue growth rates are forecasted at 73.88%, 42.82%, and 33.62% for 2024, 2025, and 2026, respectively. The gross margin is expected to improve from 20.0% in 2023 to 22.4% in 2026 [8][10]