Core Viewpoint - The company reported record-high revenues and profits for 2024 and Q1 2025, driven by strong performance in smart wearable chips and a diversified revenue structure [1][2]. Financial Performance - In 2024, the company achieved revenue of 3.263 billion yuan, a year-on-year increase of 49.94%, and a net profit attributable to shareholders of 460 million yuan, up 272.47% [1]. - For Q1 2025, revenue reached 995 million yuan, reflecting a year-on-year growth of 52.25% and a quarter-on-quarter increase of 25.88%, with a net profit of 191 million yuan, up 590.22% year-on-year [1]. Product and Market Development - The company’s revenue from smart watch/wristband chips grew by 116% in 2024, contributing significantly to overall revenue growth, with total shipments exceeding 40 million units [2]. - The revenue structure became more diversified, with Bluetooth audio chips accounting for approximately 62% and smart wearable chips for about 32% of total revenue [2]. - Continuous upgrades in wearable terminal applications have led to increased customer demands for main control chips, prompting the company to launch new products like BES2800 and BES2700 series chips [2]. Research and Development - The company maintained high R&D investment, with expenses reaching 617 million yuan in 2024, a 12.27% increase year-on-year [3]. - The company is enhancing its technology layout in Wi-Fi, NPU, and ISP, with low-power, high-performance NPU and ISP systems already in mass production [3]. Strategic Positioning - The company is positioned to capitalize on the growing trend of edge AI, with a focus on developing ultra-low-power computing SoC chips and maintaining close collaboration with premium clients [4]. - The launch of new products like MYVU AR smart glasses and Ola Friend AI smart earphones indicates the company's commitment to innovation and market leadership [4]. Investment Outlook - The company is projected to achieve revenues of 4.920 billion yuan, 6.315 billion yuan, and 7.557 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 923 million yuan, 1.304 billion yuan, and 1.660 billion yuan [4]. - A target price of 500 yuan is set based on a 65x PE valuation for 2025, reflecting the company's leading position in the domestic smart audio SoC market [4].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [4][23]. Core Views - The company achieved record high performance in 2024, with a revenue of 3.263 billion yuan, representing a year-on-year increase of 49.94%, and a net profit of 460 million yuan, up 272.47% year-on-year [7][8]. - The company is positioned as a leader in the domestic smart audio SoC sector, with a diversified revenue structure and a strong focus on R&D in AI and wearable technology [7][8]. Financial Performance Summary - In 2024, the company reported a total revenue of 3.263 billion yuan, with a year-on-year growth of 49.94%, and a net profit of 460 million yuan, reflecting a significant increase of 272.47% [7][8]. - For Q1 2025, the company achieved a revenue of 999.5 million yuan, marking a year-on-year increase of 52.25% and a quarter-on-quarter increase of 25.88% [7]. - The gross margin for Q1 2025 reached 38.47%, with net profit margins of 14.11% for 2024 and 19.16% for Q1 2025, indicating improved profitability [7][8]. Revenue and Profit Forecast - The company forecasts revenues of 4.920 billion yuan, 6.315 billion yuan, and 7.557 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 923 million yuan, 1.304 billion yuan, and 1.660 billion yuan [8][9]. - The expected EPS for 2025, 2026, and 2027 are 7.69 yuan, 10.86 yuan, and 13.83 yuan respectively [8][9]. Market Position and Strategy - The company is focusing on enhancing its R&D capabilities, particularly in Wi-Fi, NPU, and ISP technologies, to maintain its competitive edge in the smart wearable and smart home markets [7]. - The report highlights the growing trend of edge AI, with the company launching new products like the MYVU AR smart glasses and Ola Friend AI earphones, which are expected to drive future growth [7][8].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [4][23]. Core Views - The company achieved record high performance in 2024, with a revenue of 3.263 billion yuan, representing a year-on-year increase of 49.94%, and a net profit of 460 million yuan, up 272.47% year-on-year [7][8]. - The company is positioned as a leader in the domestic smart audio SoC sector, with a diversified revenue structure and a strong focus on R&D in AI and wearable technology [7][8]. - The report highlights the company's strategic partnerships and product innovations, particularly in the wearable device market, which are expected to drive future growth [7][8]. Financial Performance Summary - In 2024, the company reported a total revenue of 3.263 billion yuan, with a year-on-year growth rate of 49.9% and a net profit of 460 million yuan, reflecting a significant increase of 272.5% [8]. - For Q1 2025, the company achieved a revenue of 999.5 million yuan, marking a year-on-year increase of 52.25% and a quarter-on-quarter increase of 25.88% [7]. - The gross margin for Q1 2025 reached 38.47%, with net profit margins of 19.16%, indicating improved profitability [7][8]. Revenue and Profit Forecast - The company is projected to generate revenues of 4.920 billion yuan in 2025, 6.315 billion yuan in 2026, and 7.557 billion yuan in 2027, with corresponding net profits of 923 million yuan, 1.304 billion yuan, and 1.660 billion yuan respectively [8]. - The expected earnings per share (EPS) are forecasted to be 7.69 yuan in 2025, 10.86 yuan in 2026, and 13.83 yuan in 2027 [8]. Market Position and Strategy - The company is focusing on enhancing its R&D capabilities, particularly in Wi-Fi, NPU, and ISP technologies, to maintain its competitive edge in the smart wearable and smart home markets [7][8]. - The report emphasizes the growing trend of edge AI, which is expected to create new opportunities for the company, particularly in the development of low-power, high-performance SoC chips [7][8].