Investment Rating - The report maintains a "Buy" rating for the company with a target price of 150.00 RMB [6][4]. Core Views - The company is expected to achieve revenue of 1.626 billion RMB in H1 2025, a year-on-year increase of 1.63%, and a significant increase in net profit attributable to shareholders of 88.66 million RMB, up 84.56 million RMB year-on-year [1][4]. - The company is focusing on vertical integration of "hardware + algorithms + optics" to optimize cost control and enhance the universality of key components, leading to a recovery in profitability [1]. - The company is accelerating its penetration into overseas markets through smart and localized strategies, aiming to capture a larger share of the global mid-to-high-end market [1]. - The automotive optical products have been successfully implemented in various models from clients such as Seres, JAC, and BAIC, indicating potential for growth beyond the retail market [1][3]. Summary by Sections Financial Performance - The company forecasts net profits of 350 million RMB, 404 million RMB, and 447 million RMB for 2025, 2026, and 2027 respectively, representing year-on-year growth of 191%, 15.4%, and 10.8% [4][10]. - The expected EPS for the same years is 5.00 RMB, 5.77 RMB, and 6.39 RMB [4][10]. Market Conditions - The domestic market for smart projectors is under pressure, with a 3.9% decline in sales volume to 2.778 million units and a 2.9% decrease in sales revenue to 4.68 billion RMB in H1 2025 [2]. - Despite the challenges, the company has managed to increase its average selling price by 22.7% year-on-year across major e-commerce platforms [2]. Product Development - The automotive optical products are expected to contribute to revenue starting from H1 2025, although initial depreciation and amortization costs may impact profitability [3]. - The company’s long-standing expertise in projection technology is anticipated to create differentiated advantages in various application scenarios, including automotive and commercial uses [3].

Group 1: Financial Performance - In 2024, the company achieved revenue of 58.53 billion, a year-on-year increase of 9.2%, and a net profit attributable to shareholders of 2.25 billion, up 7.2% year-on-year [1] - For Q4 2024, the company reported revenue of 17.88 billion, a significant year-on-year increase of 24.3%, and a net profit attributable to shareholders of 0.94 billion, up 100.1% year-on-year [1] - The overall gross margin for 2024 was 15.7%, a decrease of 0.6 percentage points year-on-year, while Q4 gross margin improved to 16.4%, a year-on-year decrease of 0.3 percentage points [2] Group 2: Business Segments - The television segment generated revenue of 46.63 billion in 2024, reflecting a year-on-year growth of 13.0%, with the company maintaining a leading position in the market [1] - The new display business reported revenue of 6.77 billion, a year-on-year increase of 3.9%, with significant growth in overseas markets, where revenue increased by 63% year-on-year [1] Group 3: Market Position and Strategy - The company holds a market share of 29.8% in domestic sales and 26.3% in volume, leading the industry, with notable increases in Mini LED retail market share [1] - The company is expected to benefit from national subsidies and major sporting events, which will drive channel expansion and market share growth [2] Group 4: Future Outlook - The company forecasts net profit attributable to shareholders of 2.63 billion, 2.93 billion, and 3.26 billion for 2024, 2025, and 2026, respectively, indicating year-on-year growth rates of 16.9%, 11.6%, and 11.1% [2] - The current stock price corresponds to a PE valuation of 11, 10, and 9 times for the years 2024, 2025, and 2026 [2]

Group 1 - The report emphasizes the focus on "April Decision" under the economic context, indicating a shift from expectation-driven trading to fundamental pricing, with economic data, performance realization, and policy changes forming a "stress test" framework for stock prices [4][6][9] - The report highlights a selection of "golden stocks" across various sectors, including mechanical, electronic, environmental, coal and steel, computing, electric new energy, media internet, and pharmaceuticals, with detailed financial metrics provided for each [2][6][72] - The report suggests that the "April Decision" may lead to increased volatility in high-odds growth stocks, while larger, value-oriented stocks tend to perform better historically during this period [4][6] Group 2 - For the mechanical sector, the report recommends Niuwei Co., which is positioned as a global leader in industrial valves, benefiting from strong demand in LNG and marine industries, with expected overseas order growth of over 30% in the first half of 2024 [9][10][11] - In the electronic sector, Tianyue Advanced is highlighted for its core role in AR glasses components, with anticipated demand growth driven by major tech companies' product launches [15][16][17] - The environmental sector's Huanlan Environment is noted for its strong dividend growth and improved cash flow from debt resolution, with significant operational scale expansion through acquisitions [20][21][24] - In the coal and steel sector, Shanjin International is expected to benefit from rising gold prices amid economic stagnation risks, with a strong production outlook and low cost per gram of gold [27][29][30] - Dongtu Technology in the computing sector is recognized for its advanced operating system and AI-driven robotics, positioning it well for future growth in industrial automation [33][34][35] - Keda Li in the electric new energy sector is projected to maintain strong profit growth driven by high lithium battery demand, with a favorable valuation outlook [38][39][41] - XGIMI Technology in the media internet sector is expected to see revenue growth from domestic recovery and international expansion, particularly in the automotive sector [44][45][48] - In the pharmaceutical sector, Sanofi Pharmaceutical is noted for its solid fundamentals and multiple new product launches, contributing to revenue diversification [50][51][53] - Innovent Biologics is highlighted for its robust pipeline and international expansion potential, with several new drugs expected to drive revenue growth [55][56][61] - Zoli Pharmaceutical is recognized for its steady growth in traditional Chinese medicine products and successful new product launches, with ambitious profit targets [65][66][68]