Core Viewpoint - The company experienced good revenue growth in FY18, but profits fell short of expectations due to a decline in gross margin and contributions from the manufacturing business [2][3]. Group 1: Company Background - Jianyi Group was listed on the Hong Kong Stock Exchange in 1997, initially focusing on radio-controlled and electronic toys manufacturing [1]. - The company has two main business lines: manufacturing and non-manufacturing, with manufacturing focusing on electrical and electronic products and motors, while non-manufacturing includes real estate development [1]. - Jianyi operates three main production bases in China, located in Guangdong and Guizhou [1]. Group 2: Financial Performance - In FY18, the company's revenue increased by 22.7% to HKD 3.034 billion, up from HKD 2.472 billion in FY17 [2]. - The net profit for FY18 was HKD 149.8 million, a decline of 23.7% from HKD 196.4 million in FY17, primarily due to a 4.8 percentage point drop in gross margin [2]. - The electrical and electronic products business generated revenue of HKD 2.1375 billion, a 23.2% increase from HKD 1.7342 billion in FY17, while the automotive business revenue rose by 21.5% to HKD 896.7 million [2]. Group 3: Market Outlook - Despite the weak FY18 performance, the company is viewed positively due to favorable factors such as the depreciation of the RMB, good order conditions, and ongoing development of new businesses [3]. - The stock price adjustment following the earnings announcement is seen as a buying opportunity, especially given the company's valuation relative to peers like Delta Electronics and Mabuchi Motor [3]. Group 4: Catalysts - Potential catalysts for growth include acquiring new projects, expanding production capacity for standard motors, and recognizing revenue from real estate sales [4].