Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company achieved a total revenue of 2.419 billion yuan in 2024, representing a year-on-year increase of 9.27%, while the net profit attributable to the parent company was 28 million yuan, down 72.91% year-on-year [1] - The company's vehicle-mounted optical business has entered a phase of intensive mass production, generating revenue of 638 million yuan, with a year-on-year growth of 64.03% [2] - The company is actively expanding into emerging applications in the laser industry, showcasing innovative products at major exhibitions [2] Financial Performance Summary - In 2024, the company's gross margin was 28.31%, a decrease of 6.85 percentage points year-on-year, and the net margin was -0.24% [2] - The company plans to distribute a cash dividend of 0.25 yuan per 10 shares to all shareholders, with a payout ratio of 40.86% [1] - The company has adjusted its operating strategy for consumer-end businesses, leading to a decrease in revenue and gross margin from this segment [2] Business Segment Analysis - The cinema business generated nearly 570 million yuan in revenue in 2024, showing stable development, while the professional display business achieved revenue of 392 million yuan, with overseas markets contributing approximately 140 million yuan, a year-on-year increase of 60.47% [2] - The company has secured three high-quality contracts from well-known domestic and international automotive manufacturers in 2025, further enhancing its vehicle-mounted business [2] Future Outlook - The company is expected to see further revenue growth as it expands its vehicle-mounted and emerging laser application sectors, with projected net profits for 2025, 2026, and 2027 being 797.6 million yuan, 1.21 billion yuan, and 1.66 billion yuan respectively [3] - The company maintains a unique ALPD technology with strong barriers to entry, positioning it as a leader in the laser display field [3]

Core Viewpoint - The company reported a revenue increase of 9.27% for the fiscal year 2024, driven by the commencement of mass production and delivery of its first designated vehicle model, the AITO M9, contributing to the growth of its automotive optical business [2][3]. Financial Performance - The total revenue for 2024 was 2.419 billion yuan, up from 2.213 billion yuan in 2023 [3]. - Net profit attributable to shareholders decreased by 72.91% to 27.95 million yuan compared to 103.19 million yuan in the previous year [3][4]. - The net profit after deducting non-recurring gains and losses was 32.13 million yuan, down 22.88% from 41.66 million yuan in 2023 [3][4]. - The net cash flow from operating activities was 87.22 million yuan, a decline of 76.04% year-on-year [4]. Business Strategy and Developments - The company has adjusted its C-end business strategy, leading to a decrease in revenue and gross margin from this segment, while the automotive business is gaining a larger share of revenue [4]. - The company has secured 13 automotive designations, including a significant contract for smart cockpit systems with a leading international automaker, indicating a shift towards global market expansion [4]. Research and Development - R&D expenditure accounted for 10.24% of total revenue, a decrease from 12.69% in the previous year [3]. - The company is focusing on technological upgrades and product diversification in its automotive segment to meet the needs of car manufacturers [4]. Q1 2025 Performance - For Q1 2025, the company reported a revenue of 461.38 million yuan, a 3.67% increase year-on-year [5]. - The net loss attributable to shareholders was 21.36 million yuan, a shift from profit to loss compared to the same period last year [5].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][3][16] Core Viewpoints - The company has received a development notice from a leading international automotive manufacturer, becoming the exclusive supplier of in-vehicle optical components for their smart cockpit products, which are configured in a global series of models. This recognition highlights the company's supply chain capabilities and product quality meeting international standards, facilitating future business expansion [4][5][6] - The company has secured a total of 13 in-vehicle display contracts with leading domestic and international automotive manufacturers, indicating strong market demand for its products. As these contracts enter mass production, the in-vehicle business is expected to drive significant revenue growth [5][8] - The cinema market is currently thriving, and the company's cinema business is anticipated to achieve good growth. The company has also made positive adjustments in its consumer-facing (C-end) business, leading to initial improvements in its fundamentals [5][12] - The company is a global leader in laser display technology, with its smart cockpit business gaining continuous recognition from top automotive manufacturers. The in-vehicle business is expected to create a second growth curve for the company [5][16] Summary by Sections Business Development - The company has been recognized by a major international automotive manufacturer for its smart cockpit products, which is expected to accelerate its global expansion in the automotive sector [6] - The first model equipped with the company's smart cockpit display products, the Wanjie M9, is set to begin deliveries in March 2024, with expected total deliveries exceeding 150,000 units for the year [8] Financial Forecast - The company has adjusted its profit forecast due to investment losses from its subsidiaries and strategic adjustments in its C-end business. The projected net profits for 2024-2026 are 30 million, 200 million, and 260 million respectively, with corresponding P/E ratios of 299, 43, and 34 [5][16][26] - The company expects its in-vehicle business revenue to exceed 600 million in 2024, with significant growth anticipated in subsequent years as production capacity increases [20][21] Market Position - The company has established a strong market presence with its in-vehicle display, laser headlights, and AR-HUD technologies, positioning itself favorably against competitors [5][16] - The cinema business is expected to benefit from a booming market, with the company’s laser projection solutions installed in over 31,000 cinemas nationwide [12][18]