Core Viewpoint - The company is a leading player in the LED display control industry, focusing on video processing algorithms and hardware solutions, with products widely used in various video display scenarios [1][2]. Group 1: Industry Trends - The display industry is evolving towards precision, with small-pitch LED and ultra-high-definition video driving long-term growth for the company [1]. - The demand for the company's products is positively correlated with the pixel count of downstream LED displays, which is increasing due to lower costs and the proliferation of small-pitch LED screens [1]. - The video industry is transitioning from 4K to 8K, leading to higher requirements for video processing technology in terms of clarity, refresh rate, and low latency, which is expected to enhance the pricing of the company's video processing equipment [1]. Group 2: Customer Relationships - The company has established deep partnerships with leading LED display manufacturers, creating high customer stickiness and significant barriers to entry for competitors due to the high cost of replacing the company's products [2]. - The integration of transmitter functions into video processing equipment necessitates compatibility with the company's control systems, further solidifying its market position [2]. Group 3: Market Expansion - The company is actively expanding its overseas marketing network, with sales offices in the Netherlands and the United States, enhancing brand recognition through participation in high-level exhibitions [2]. - The company's products are well-received in the European and American markets due to their competitive price-performance ratio compared to established local brands [2]. Group 4: Product Development - The company plans to launch AI-driven display control solutions in the first half of 2025, covering ultra-high resolution, conference systems, and MLED calibration, along with new flagship products [3]. - The AI display control products are gaining rapid acceptance in the commercial display sector due to their superior image processing capabilities and user-friendly operation [3]. Group 5: Financial Projections - The company is expected to benefit from the growth of the display industry, with projected revenues of 745 million, 876 million, and 1.059 billion yuan for 2025, 2026, and 2027 respectively, and net profits of 32 million, 59 million, and 124 million yuan for the same years [3].

Investment Rating - The report maintains a "Buy" rating for the company Calet (301391) with a target price set at 55.18 [1][7]. Core Views - The company is positioned as a leading enterprise in the LED display control industry, focusing on video processing algorithms and hardware solutions for video image fields [4][14]. - The company is experiencing a recovery in performance growth while actively transforming towards AI technologies [1][9]. - The LED display industry is evolving towards precision and high-definition, with small-pitch LED and ultra-high-definition video driving long-term growth for the company [5][34]. Summary by Sections Company Overview - Calet was established in January 2012 and provides comprehensive solutions in video image fields, with products including LED display control systems, video processing equipment, and cloud-connected players [4][14]. - The company has a clear shareholding structure with a high concentration of ownership, and its management team possesses strong technical backgrounds [20][23]. Industry Trends - The LED display industry is witnessing a shift towards precision and high-definition, with the cost of small-pitch LED displays decreasing, thus expanding downstream application scenarios [34][38]. - The global LED display market is expected to grow, with a projected CAGR of 7% from 2023 to 2028 [34]. Competitive Positioning - The company's products are considered the "brain" of LED displays, directly influencing the stability and display quality of LED screens [56][58]. - The company has established deep partnerships with leading LED display manufacturers, creating high barriers to entry for competitors [5][6]. Financial Performance and Forecast - The company’s revenue is projected to recover, with expected revenues of 7.45 billion, 8.76 billion, and 10.59 billion yuan for 2025, 2026, and 2027 respectively [7][8]. - The gross profit margin has shown an upward trend, increasing from 40.25% in 2020 to 44.01% in 2024 [28][31]. Product Development - The company is expanding its product matrix to lead the AI + display control technology transformation, launching new AI-driven display solutions [6][31]. - The introduction of high-margin products such as video processing equipment and cloud-connected players is expected to enhance revenue growth [29][30].