Core Points - Liu Jingkang, the founder and chairman of YingShi Innovation, sparked controversy by throwing money to employees during an internal event, which led to public discussions [1] - The company issued an apology regarding the incident and stated that it would strengthen internal management practices to align with public expectations for a listed company [1] - YingShi Innovation's drone product, "YingLing Antigravity," is set to launch in 2026 and has not yet generated revenue, thus not significantly impacting the 2025 financial performance [1] Company Overview - YingShi Innovation, founded in 2015, is a globally recognized smart imaging brand that initially focused on VR and panoramic cameras, later expanding into action cameras [5][7] - The company has two product lines: consumer-grade and professional-grade, covering 360-degree panoramic cameras, action cameras, smartphone stabilizers, and video conferencing cameras [5] - Liu Jingkang, born in 1991, became the first post-90s founder to list on the Sci-Tech Innovation Board, with the company's market capitalization increasing significantly since its IPO [3][5] Market Position - YingShi Innovation became the largest global brand in panoramic camera shipments by 2018, achieving a market share of 41% by 2021, and currently holds a 67.2% share in 2023 [7] - The company's sales reached 3.14 billion yuan in 2023, maintaining its position as the global leader for six consecutive years [7] - Revenue figures for YingShi Innovation from 2022 to 2024 are projected at 2.041 billion yuan, 3.636 billion yuan, and 5.574 billion yuan, with net profits of 407 million yuan, 830 million yuan, and 995 million yuan respectively [7]

Core Viewpoint - The recent incident involving Liu Jingkang, the founder and chairman of YingShi Innovation, throwing money to employees has sparked significant public discussion, leading the company to apologize and review its internal management practices [1]. Group 1: Company Overview - YingShi Innovation was founded in 2015 and is a globally recognized smart imaging brand based on panoramic technology, initially starting with VR and panoramic cameras, and later entering the action camera market [6]. - The company has two product lines: consumer-grade and professional-grade, covering 360-degree panoramic cameras, action cameras, smartphone stabilizers, and video conferencing cameras [6]. - Liu Jingkang, born in 1991, became the first post-90s founder on the Sci-Tech Innovation Board after the company's IPO [4]. Group 2: Financial Performance - YingShi Innovation's market share in the global panoramic camera market reached 67.2% in 2023, with sales amounting to 3.14 billion yuan, maintaining its position as the global leader for six consecutive years [7]. - The company's revenue and net profit from 2022 to 2024 are projected to be 2.041 billion yuan, 3.636 billion yuan, and 5.574 billion yuan, with net profits of 407 million yuan, 830 million yuan, and 995 million yuan respectively [7]. Group 3: Stock Market Performance - YingShi Innovation's stock debuted on the Sci-Tech Innovation Board on June 11, with an initial price surge of over 290%, closing with a market capitalization of 71 billion yuan [4]. - As of August 15, the stock reached a price of 224.42 yuan per share, resulting in a market capitalization of 90 billion yuan [4].

Core Insights - The company, YingShi Innovation, faced significant challenges during its early years, including a funding crisis and industry downturn, which shaped its resilience and innovative approach [2][6] - The core value of smart consumer devices lies in addressing unmet user needs, with YingShi focusing on creating emotional connections through its imaging products [3][4] - The company emphasizes the importance of creating differentiated products and leveraging technology to capture market opportunities, leading to a competitive advantage [3][5] Company Development - YingShi Innovation has successfully expanded its product line to include panoramic cameras, action cameras, and video conferencing cameras, reaching millions of users globally [3][11] - The company experienced a critical moment in 2016 when it faced a funding crisis, with only 30,000 yuan left, but secured investment from IDG, which was pivotal for its survival and growth [6][7] - The listing on the STAR Market (科创板) represents a significant milestone for the company, providing a more favorable environment for technology firms and enabling further investment in R&D [7][8] Global Strategy - YingShi Innovation adopted a global expansion strategy from its inception, avoiding the intense domestic price competition by targeting mature overseas markets [10] - The company positions itself with a high-price, high-value strategy, offering products that are 20%-30% more expensive than competitors while delivering unique experiences [10][11] - The robust Chinese supply chain and supportive policies have facilitated YingShi's international growth, allowing it to leverage advantages in technology and resources [10][11] Future Outlook - The company aims to continue its focus on the imaging sector, with a vision to innovate and create new product categories over the next five to ten years [11] - YingShi has invested 1.48 billion yuan in R&D over the past three years, representing 13.16% of its total revenue, and plans to maintain a high proportion of technical personnel [11]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [3]. Core Insights - The company is a global leader in smart imaging devices, established in 2015, focusing on panoramic and action cameras. It has achieved a revenue CAGR of approximately 66.9% and a net profit CAGR of about 94.7% from 2018 to 2024, driven by continuous product iterations and technological advancements [3][4][25]. - The company is expected to maintain rapid growth, with projected net profits of 1.201 billion, 1.662 billion, and 2.304 billion yuan for 2025, 2026, and 2027 respectively, corresponding to EPS of 3.00, 4.14, and 5.75 yuan [3][6]. Summary by Sections Business Overview - The company has a diverse product range and operates both domestically and internationally. It has successfully launched several innovative products, including the first consumer-grade panoramic camera in 2016, which gained popularity due to its user-friendly features [13][14]. - The company has established a strong market presence, leading the global panoramic camera market for seven consecutive years and maintaining a top-three position in the action camera market [4][5]. Market Demand and Positioning - The global market for panoramic cameras was valued at 5.03 billion yuan in 2023, with a CAGR of 12.3% from 2017 to 2023. The action camera market reached 31.44 billion yuan in 2023, growing at a CAGR of 14.5% during the same period [4]. - The company has differentiated itself by creating a new category of "panoramic action cameras," addressing pain points in traditional models and enhancing user experience through innovative features [4][5]. Research and Development - The company invests heavily in R&D, with a team of 1,367 people, accounting for 57.68% of its workforce. The average R&D expense ratio exceeds 12%, and it holds 900 patents in key technology areas [5][6][14]. - The company's core technologies include panoramic image stitching, AI image processing, and stabilization algorithms, which have been effectively translated into product applications [15][16]. Financial Performance - The company's revenue grew from 258 million yuan in 2018 to 5.574 billion yuan in 2024, with a CAGR of 66.86%. The revenue from panoramic and action cameras constitutes 54.1% and 26.7% of total revenue in 2024, respectively [25][28][33]. - The company has maintained a gross margin above industry averages, with a gross margin of 52.2% in 2024, despite a slight decline due to changes in product mix [40][41]. Marketing Strategy - The company employs a dual-channel strategy, with online and offline sales contributing nearly equally to total revenue. Online sales have a higher gross margin compared to offline sales [35][44]. - The marketing approach includes experiential offline promotions and online content generation, enhancing brand awareness and customer engagement [5][6].