Core Viewpoint - Yiri Technology has demonstrated resilience in maintaining stable revenue despite global trade tensions, highlighting its competitive edge in the professional lighting market, particularly in Europe and the United States [1][2][6]. Company Overview - Yiri Technology reported nearly 1 billion yuan in revenue last year, with foreign trade accounting for nearly 70% of its business, primarily in the U.S. market [1][5]. - The company has established itself as a leading player in the lighting industry, gaining recognition through major events like the Beijing Winter Olympics and various international concerts [1][5]. Market Position and Strategy - Yiri Technology has successfully replaced many Western brands in the lighting sector, with a significant presence in high-profile events such as the Billboard Music Awards and the Eurovision Song Contest [5][6]. - The company emphasizes creativity, innovation, and a robust supply chain as key factors in its competitive strategy, allowing it to maintain a strong market position despite external pressures [2][8]. Technological Innovation - Yiri Technology invests heavily in research and development, with 5% of its total revenue allocated to R&D, resulting in over 200 patents and ongoing applications for additional patents [11][12]. - The company has developed advanced technologies, such as the ResetFree technology for precise lighting control, enhancing its competitive edge in the global market [11]. Industry Trends - The global stage lighting equipment market is projected to grow from approximately $5.8 billion in 2024 to $10 billion by 2030, with Guangdong being a major production base [7]. - The traditional lighting industry in Guangdong is undergoing transformation, integrating technological advancements and exploring new sectors such as electric vehicles and optical displays [12].

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]