Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company is positioned as a leading manufacturer in the small and medium-sized display panel sector, with a diversified display layout that includes LCD, AMOLED, and MicroLED technologies. It is expected to benefit from the recovery in demand for automotive and consumer electronics, as well as the growth of flexible OLED and MicroLED segments [1][9]. - The company has shown a significant improvement in profitability, with forecasts indicating a return to profitability in the coming years, driven by high-margin non-consumer businesses and improved operational efficiency [28][9]. Summary by Sections 1. Company Overview - The company specializes in the design, manufacturing, and sales of display devices and related materials, including LCD, AMOLED, OLED, and MicroLED panels, primarily used in mobile phones, automotive displays, IT displays, and professional displays [1][13]. - It has maintained a leading position in various display application markets, including TFT automotive displays and LTPS smartphone displays, with a strong global presence [1]. 2. Demand Side Analysis - The consumer electronics sector is experiencing a recovery, with smartphone demand gradually improving, supported by government subsidies. The automotive electronics market is also growing due to the rise of electric vehicles and the increasing penetration of smart cockpit technologies [2][39]. - The report highlights that the global smartphone display panel market is expected to grow, with AMOLED panels gaining market share over traditional LCDs [49][50]. 3. Supply Side Analysis - The report notes that the concentration of LCD production capacity is shifting towards mainland China, enhancing the competitive landscape and stabilizing profitability in the LCD panel industry [3]. - The domestic OLED production capacity is rapidly expanding, with local manufacturers increasing their market share, which is expected to create new growth opportunities for the company [3][9]. 4. Financial Forecast and Investment Recommendations - The company is projected to achieve a net profit of 312 million, 500 million, and 601 million yuan from 2025 to 2027, with corresponding EPS of 0.13, 0.20, and 0.24 yuan [9]. - The report anticipates that the company will continue to benefit from the recovery in downstream demand, optimized market competition, and the release of new production capacities, particularly in the automotive and professional display sectors [9].