Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2]. Core Insights - The company is a leading provider of smart home hardware and IoT cloud platform services in China, leveraging a 2+5+N system to build an integrated AIoT ecosystem, driving performance growth through hardware and cloud platform synergy. The growth logic across various segments is clear, with expected steady profit growth from 2025 to 2027 [5][19]. - The projected net profits for 2025, 2026, and 2027 are estimated at 6.24 billion, 7.10 billion, and 8.45 billion yuan, respectively, with corresponding EPS of 0.8, 0.9, and 1.1 yuan, leading to a current PE ratio of 41.2, 36.2, and 30.4 times [5][10]. Summary by Sections Company Overview - The company originated from Hikvision and has developed a vertical integrated AIoT ecosystem through product and cloud service offerings. Its development has progressed through four stages, culminating in the current 2+5+N ecosystem upgrade [19][21]. Market Dynamics - The global smart home market is rapidly expanding, with a projected size of 174 billion USD by 2025, growing at a CAGR of 17.4% from 2020 to 2025. The penetration rate is expected to increase by 29.7% during the same period [7][55]. Competitive Advantages - The company has a strong technological foundation and continues to invest in AI algorithm development, enhancing its supply chain through increased self-production and the establishment of smart factories [6][19]. Future Outlook - The company has clear growth trajectories across its product lines, including smart cameras, smart entry systems, and service robots. The smart camera segment is expected to remain a primary growth driver, while the smart entry segment is rapidly expanding, with a projected revenue growth of 47.9% in 2024 [8][19]. Financial Performance - The company has shown consistent revenue growth, with total revenue expected to rise from 48.41 billion yuan in 2023 to 62.53 billion yuan in 2027, reflecting a CAGR of 15.3% [10][19]. The net profit is projected to recover and grow steadily after a temporary decline in 2024 due to increased marketing and R&D expenses [40][44].

Core Insights - The "Yingstone Blue Ocean Model" has officially received the certification as the "first embodied intelligent large model in the home furnishing industry" from the renowned consulting firm CIC Zhaoshi [1][3] - The model is defined as an artificial intelligence large model specifically applied to the home furnishing industry and has received full national registration [3] Group 1: Model Characteristics - The Yingstone Blue Ocean Model focuses on embodied intelligence, emphasizing continuous interaction with the physical environment for learning, understanding, and decision-making [3][5] - It has established a complete technical hierarchy from L0 (basic perception) to L4 (embodied intelligent agent), aiming to create true spatial-level intelligent interaction capabilities [5] - The model addresses the shortcomings of general large models in home scenarios, such as inefficient interaction with physical devices and lack of "embodied memory" [5][7] Group 2: Technological Advancements - The model has evolved to version 2.0, enhancing perception, understanding, and memory capabilities through multi-dimensional integration, modal expansion, and specialized memory [5][7] - It covers 1,200 common home targets across various scenarios and recognizes over 7,100 bird species and 36 dangerous animals [7] - The model supports mixed understanding of multi-modal signals, enabling real-time scene recognition, such as identifying a specific person based on clothing and context [7] Group 3: Market Impact - The certification of the model marks a significant recognition of its technological direction and provides strategic backing for the smart upgrade of the home furnishing industry [8] - The Yingstone cloud platform has gathered over 360,000 developer clients, with applications extending beyond home scenarios to retail, agriculture, and education [8] - The model's introduction signifies the formal entry of embodied intelligence technology into the core of home furnishing scenarios, influencing the broader developer ecosystem [8]