Core Viewpoint - HOME CONTROL (01747.HK) has entered into a placement agreement with Macquarie to issue up to 28.424 million shares at a price of HKD 3.80 per share, representing a discount of approximately 18.98% from the last closing price of HKD 4.69 on November 17 [1][2] Group 1 - The total number of shares to be placed is equivalent to about 5.61% of the company's existing issued share capital as of the announcement date [1] - The estimated total proceeds from the placement are approximately HKD 108 million, with a net amount expected to be around HKD 106.3 million [2] Group 2 - Approximately 70% of the net proceeds will be allocated to research and development activities related to the group's healthcare business, including AIoT technology and core personal healthcare management products [2] - About 20% of the net proceeds will support the implementation and operation of the healthcare-related business, such as industry research, business analysis, compliance management, and seeking strategic partnerships [2] - The remaining 10% of the net proceeds will be used to supplement working capital and for general corporate purposes [2]

Investment Rating - The investment rating for the company is "Buy" [9] Core Views - The company's television ODM and smart interactive performance continue to show steady growth, with optimism regarding the growth potential from AI-enabled innovations and the expansion of its own brand overseas [5] - Revenue and profit forecasts for 2025-2027 are projected at 17.6 billion, 19.9 billion, and 22.0 billion yuan respectively, with year-on-year growth rates of +13%, +13%, and +11% [5] - The expected net profit attributable to the parent company for the same period is 1.0 billion, 1.2 billion, and 1.4 billion yuan, with year-on-year growth rates of +17%, +19%, and +17% [5] Revenue Analysis - In Q1, the company reported revenue of 3.142 billion yuan, a year-on-year increase of 10.8%, and a net profit attributable to the parent company of 215 million yuan, up 15.8% year-on-year [9] - The smart TV segment saw a revenue increase of 6% year-on-year, with volume and price changes of +31% and -19% respectively, attributed to a strategy of gaining market share through price adjustments [9] - The smart interactive segment experienced a 10% year-on-year revenue increase, driven by a recovery in demand, particularly in professional displays and gaming screens [9] - Innovative products achieved a remarkable 50% year-on-year revenue growth, with significant contributions from the company's own brands [9] Profitability Analysis - The gross margin for Q1 was 13.4%, reflecting a 0.4 percentage point increase year-on-year, primarily due to improved product mix and stable panel prices [9] - The net profit margin for Q1 improved by 0.3 percentage points year-on-year, with a notable decrease in various expense ratios, except for brand-building investments [9] - The company expects to maintain a positive trend in profitability, with net profit margins projected to improve gradually over the forecast period [10]