Investment Rating - The report gives a "Strong Buy" rating for the company [11]. Core Viewpoints - The company is a leading player in the smart logistics sector, focusing on self-research and production capabilities in both hardware and software [22][23]. - The revenue structure is designed around "core systems + high-margin services," with significant growth expected in both automated logistics systems and operational maintenance services [37][9]. - The company has substantial growth potential by benchmarking against global leader Daifuku, particularly in expanding overseas revenue and service offerings [54][56]. Summary by Sections Company Overview - The company specializes in the research, design, production, sales, and service of smart logistics systems centered around intelligent robots, providing comprehensive solutions across various industries [22][23]. Revenue Structure - In 2024, the smart warehouse logistics automation system is projected to generate revenue of 1.122 billion yuan with a gross margin of 30.74%. Operational maintenance services are expected to yield 44 million yuan with a gross margin of 52.05% [37][9]. Market Potential - The smart logistics equipment market in China is expected to grow from 449 billion yuan in 2020 to 1,041 billion yuan by 2024, with a compound annual growth rate of 23.4% [39][44]. Benchmarking Against Daifuku - The company aims to increase its overseas revenue share, which is currently at 2.70%, by expanding into new markets such as Thailand, Mexico, and Canada, with overseas project contracts reaching 240 million yuan, a year-on-year increase of 281% [56][62]. Future Growth Drivers - The company is expected to benefit from the increasing demand for automation in logistics driven by AI technology, which is reshaping the industry towards a more technology-intensive model [10][73]. - The operational maintenance and consulting services are anticipated to become a significant growth curve, with gross margins significantly higher than the core logistics automation systems [67][9]. Financial Projections - The company forecasts net profits of 162 million yuan, 197 million yuan, and 318 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.59, 1.92, and 3.11 yuan [11][79].

Core Viewpoint - The company, Lanjian Intelligent Technology Co., Ltd., has received an inquiry letter regarding its 2024 annual report disclosure, prompting a detailed response about its revenue recognition and business performance. Group 1: Revenue and Business Performance - In 2024, the company's main business segments include intelligent warehousing logistics automation systems, operational services, and others, with total revenue reaching 1.206 billion yuan, a 23.75% increase from 2023 [2][3] - The revenue from the intelligent logistics system was 1.122 billion yuan, marking a 25.77% increase from 2023, driven by demand across various industries including tobacco, pharmaceuticals, and e-commerce [4][6] - The operational service revenue decreased slightly by 3.25% to 38.80 million yuan, while technical consulting services saw a significant increase of 2103.47% to 837,700 yuan [3][4] Group 2: Market Trends and Competitive Analysis - The growth in revenue is attributed to favorable government policies promoting smart manufacturing and rising demand for automation due to increasing land and labor costs [5][6] - Compared to industry peers, Lanjian's revenue growth rate of 23.80% stands out, while competitors like Jintian International and Yinfeng Storage experienced declines [6][7] - The company has established a competitive edge through innovation in logistics technology and a comprehensive service capability that meets diverse customer needs [5][6] Group 3: Revenue Recognition Policies - The company recognizes revenue based on initial acceptance reports, with 97.14% of the intelligent logistics system revenue confirmed this way, aligning with industry practices and accounting standards [9][12] - The revenue recognition policy has remained consistent since the IPO, with no adverse conditions affecting the transition from initial to final acceptance [12][15] - The operational service revenue is recognized upon confirmation of monthly service fees based on performance metrics, ensuring compliance with accounting standards [19][21] Group 4: Customer and Supplier Dynamics - The company has seen changes in its top five customers and suppliers, with new entrants like BYD and Hikvision, reflecting shifts in procurement needs and market dynamics [21][22] - The operational model involves significant investments in automation systems, which impacts cash flow and limits the ability to undertake multiple projects simultaneously [19][24] - The company maintains a cautious approach to revenue recognition from major clients, ensuring that all sales are terminal sales and that income is recognized accurately [22][23]