Core Insights - The rise of conference flat panels is replacing traditional office equipment like projectors and whiteboards, driven by the demand for smart office solutions post-pandemic [1][5] - MAXHUB, a brand under the company, has established a significant presence in over 140 countries, with more than 600,000 interactive flat panels delivered [1][4] - The global market for smart interactive flat panels is projected to reach 913,000 units by 2029, indicating robust growth in this sector [1] Company Overview - The company originated from the LCD display business and has expanded into the education and enterprise service markets, launching the "MAXHUB" and "Seewo" brands in 2009 and 2017 respectively [1][4] - MAXHUB holds a 28% market share in the commercial interactive flat panel market in China, which is expected to grow by 18.7% year-on-year in 2024, surpassing global growth rates [4] Market Dynamics - The global market for conference rooms exceeds 100 million, with over 20 million in China alone, indicating a vast demand for smart conference solutions [5] - The average price point for smart conference flat panels is approximately 10,000 yuan, positioning this market as a trillion-yuan opportunity [5] Strategic Initiatives - The company is focusing on expanding its overseas brand presence, particularly in developed countries for enterprise services and in "Belt and Road" countries for educational products [6] - Collaborations with international tech giants like Microsoft and Intel are crucial for integrating into global ecosystems and enhancing product offerings [6][7] Product Development - The company has developed unique features in its products, such as integration of Windows and Android systems, along with AI capabilities for enhanced user experience [6] - The company is also venturing into the robotics sector, with products like the MAXHUB A3 intelligent flexible robotic arm and MAXHUB X7 quadruped robot, targeting high-consumption markets [8] Future Prospects - The company plans to list on the Hong Kong Stock Exchange to support overseas market expansion and strategic investments [8] - The trend of A-share companies seeking dual listings in Hong Kong is increasing, with over 80 companies currently in the pipeline [9]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [5] Core Viewpoints - The company has successfully transitioned from product to platform in its AI education solutions, achieving a 45.3% market share in domestic interactive smart panels in the education sector, maintaining its industry leadership for 13 consecutive years [3][4] - The AI-enabled products are driving structural upgrades in the B-end product offerings, enhancing teacher efficiency and personalized teaching capabilities [3] - The overseas business has shown significant growth, with revenue reaching 5.699 billion yuan in 2024, a year-on-year increase of 22.23% [4] - The company is entering the robotics sector with the launch of the MAXHUB X7 industrial-grade quadruped robot, indicating potential for high margins and strong scene adaptability [5] Summary by Sections Company Overview - The company, established in December 2005, focuses on smart interactive displays and AI technology, evolving from LCD display control boards to a comprehensive provider of smart electronic solutions [13] - It operates under several well-known brands, including Seewo for education and MAXHUB for enterprise services [13] AI Education - The AI education sector is experiencing rapid expansion, with a significant shift towards integrated smart ecosystems in educational settings [40] - The market for interactive hardware in education has reached a 72% share, indicating strong demand for AI-integrated solutions [40] - The company’s Seewo brand has a robust presence, covering over 2.8 million classrooms and serving approximately 10 million teachers [14] Company Highlights - The core component business remains a stable revenue pillar, with a market-leading position in LCD display control boards, achieving a global market share of approximately 32.72% [71] - The overseas business is expanding rapidly, with significant growth in regions like Southeast Asia and India, supported by local partnerships and government initiatives [75][78] - The company is actively investing in R&D, with a budget of 1.54 billion yuan in 2024, representing 6.88% of its revenue, ensuring a competitive edge in technology [72]

Core Viewpoint - The company, Guangzhou Shiyuan Electronic Technology Co., Ltd. (referred to as "Shiyuan"), is planning a secondary IPO in Hong Kong to support its transformation strategy focused on AI and global expansion, despite facing declining profitability and increased competition from major tech players [2][4]. Financial Performance - In 2024, Shiyuan reported a record revenue of 22.40 billion yuan, marking an 11.05% increase from 2023 [3]. - The net profit attributable to shareholders significantly dropped by 29.13% to 970.96 million yuan [3]. - The overall gross margin decreased from 26.2% in 2022 to 20.9% in 2024 [2]. Business Structure and Challenges - The decline in profitability is attributed to changes in business structure, particularly in its core brands, "Seewo" and "MAXHUB," which experienced revenue slowdowns [3]. - Revenue from the education segment fell by 8.75%, while enterprise service revenue decreased by 2.60%, with the gross margin for this segment dropping from 35.6% in 2022 to 25.3% in 2024 [3]. - The "Smart Control Components" business, which has a lower gross margin of 14.3%, saw its revenue share increase from 41.9% in 2022 to 45.9% in 2024, negatively impacting overall profitability [3]. Research and Development Investment - Shiyuan's R&D expenditure reached 1.54 billion yuan in 2024, significantly exceeding its net profit of 970.96 million yuan [4]. - The management indicated plans to increase investments in AI technologies and smart hardware in 2025 [4]. Market Position and Competition - Shiyuan holds leading market shares in several niche markets, including liquid crystal display control boards and interactive smart panels [4]. - The company faces competitive pressure from major technology firms like Huawei and Lenovo, which may impact its ability to transition from a hardware manufacturer to an AI-driven technology platform [4].

Core Viewpoint - The company maintains a leading position in the global liquid crystal display (LCD) main control board market, with a focus on continuous growth in revenue and expansion of its smart terminal business [3][5]. Group 1: LCD Main Control Board Business - The company provides core components and customized solutions for LCD main control boards, consistently ranking as a market leader. The global shipment volumes for LCD TVs in 2022, 2023, and 2024 are projected to be 20,364.86 million, 19,947.68 million, and 20,575.18 million units, respectively. The company's shipments of LCD TV main control boards for the same years are 6,722.06 million, 5,623.50 million, and 6,732.48 million units, representing 33.01%, 28.19%, and 32.72% of the global market share [3]. Group 2: Smart Terminal Business - The company's educational interactive smart panels serve as a core digitalization tool in classrooms, integrating large-size high-definition displays, interactive touch, and audio amplification. The Seewo interactive smart panel has been recognized as a national champion product by the Ministry of Industry and Information Technology. Additionally, the MAXHUB conference interactive panel, which integrates high-definition display, computing storage, interactive writing, and network connectivity, has also received national champion product status. This smart terminal business is expected to provide long-term growth momentum for the company [4]. Group 3: Revenue Growth - In 2024, the company achieved a revenue of 22.401 billion, representing a year-on-year growth of 11.05%. However, the net profit attributable to shareholders decreased by 29.13% to 0.971 billion. In Q1 2025, the company reported a revenue of 5.005 billion, with a year-on-year increase of 11.35%, while the net profit attributable to shareholders decreased by 9.23% to 0.162 billion [5]. Group 4: Share Buyback - The company has been actively pursuing a share buyback program, with a total of 5.06698 million shares repurchased by June 30, 2025, accounting for 0.73% of the total share capital, with a total transaction amount of 150 million (excluding transaction fees). This buyback is seen as a move to enhance the company's confidence in its development [6]. Group 5: H-Share Issuance - The company submitted an application for H-share issuance and listing on the Hong Kong Stock Exchange on June 17, 2025. This move is expected to broaden the company's financing channels and support its long-term development [7].

Core Viewpoint - The company, Guangzhou Shiyuan Electronic Technology Co., Ltd. (视源股份), is seeking to list H-shares in Hong Kong amid a significant decline in its market valuation, which has dropped from nearly 100 billion yuan in early 2021 to approximately 23.1 billion yuan as of June 19, 2025, representing a loss of over 75 billion yuan [1][22]. Financial Performance - In 2024, the company reported record revenue of 22.401 billion yuan, a year-on-year increase of 11.05%, but its net profit attributable to shareholders plummeted by 29.13% to 971 million yuan. The gross margin also fell from 26.2% in 2022 to 20.9% in 2024 [2][4]. - The "Smart Terminal and Applications" segment, which includes the "Seewo" and "MAXHUB" brands, saw its gross margin decline sharply from 35.6% in 2022 to 25.3% in 2024, indicating pressure on its core business [3][9]. Business Segments - The "Smart Control Components" segment experienced robust growth, with a revenue increase of 20.4% in 2024, particularly in the home appliance controller business, which surged by 65.64%. However, this segment's lower gross margin of 14.3% negatively impacted the overall profitability of the company [3][10][13]. - The education business generated revenue of 5.054 billion yuan, down 8.75%, while the enterprise service business saw a revenue decline of 2.6% to 1.582 billion yuan, reflecting challenges in traditional markets [8][9]. R&D Investment - The company invested 1.54 billion yuan in R&D in 2024, which accounted for 6.88% of its revenue, indicating a commitment to innovation despite declining profits. The R&D workforce comprised 48.24% of total employees, totaling 3,229 personnel [4][14]. IPO Purpose - The primary goal of the H-share listing is to support the company's globalization strategy, enhance international market presence, and secure funding for R&D and strategic investments [17][18]. Global Expansion - The company reported overseas revenue of 4.348 billion yuan, a year-on-year increase of 16.83%, and is focusing on deepening its presence in international markets through localized teams and partnerships with global tech giants [18][19]. AI Strategy - The company is heavily investing in AI, with initiatives such as the "Seewo Classroom Intelligent Feedback System" and the "Seewo Teaching Large Model," aiming to transform from a hardware manufacturer to a technology platform with advanced algorithms and applications [20]. Market Competition - The company faces intense competition from major players like Huawei and Lenovo, which poses risks to its market share and profitability. The management has acknowledged these challenges and is focusing on increasing the revenue share of high-margin products [21][22].

Core Viewpoint - The company, Guangzhou Shiyuan Electronic Technology Co., Ltd. (002841.SZ), is seeking to raise funds through an H-share IPO in Hong Kong to support its high R&D expenditures and global expansion strategy amidst declining profitability [1][2][9]. Financial Performance - In 2024, the company reported record revenue of 22.401 billion yuan, a year-on-year increase of 11.05%, but net profit attributable to shareholders fell significantly by 29.13% to 971 million yuan [1]. - The gross margin decreased from 26.2% in 2022 to 20.9% in 2024, indicating a decline in profitability [1]. - The "Smart Terminal and Applications" segment, which includes the "Seewo" and "MAXHUB" brands, saw a gross margin drop from 35.6% in 2022 to 25.3% in 2024 [1][4]. Business Segments - The "Smart Control Components" segment experienced robust growth, with revenue increasing by 20.4% in 2024, particularly driven by a 65.64% surge in home appliance controllers [1][6]. - Despite the growth in the "Smart Control Components" segment, its gross margin was only 14.3%, which negatively impacted the overall profitability of the company as this segment's revenue share rose from 41.9% in 2022 to 45.9% in 2024 [7]. R&D Investments - The company invested 1.54 billion yuan in R&D in 2024, which accounted for 6.88% of its revenue, indicating a commitment to innovation despite declining profits [2][8]. - The management plans to increase R&D spending in 2025 to enhance technology innovation and product upgrades [2]. Market Position and Competition - The company holds leading market shares in several segments, including 17.5% in global education interactive smart panels and 25.0% in China's enterprise service market for interactive smart panels [3]. - However, the education and enterprise service segments faced revenue declines of 8.75% and 2.60%, respectively, due to increased competition from major players like Huawei and Lenovo [4][5]. Global Expansion Strategy - The IPO aims to enhance the company's international market presence and brand influence while providing a broader capital platform for long-term development [9]. - The company reported a 16.83% increase in overseas revenue, reaching 4.348 billion yuan in 2024, as part of its strategy to penetrate international markets [9][10]. AI and Future Prospects - The company is focusing on AI as a core direction for future growth, with significant R&D investments aimed at developing AI applications in education [11][12]. - The management has outlined strategies to improve the revenue share of high-margin products and enhance market promotion of AI products [12].

Core Insights - The company reported a revenue of 22.401 billion yuan for 2024, marking an 11% year-on-year increase, with a net profit of 971 million yuan [1] - In Q1 2025, the company continued its steady growth, achieving a revenue of 5.005 billion yuan [1] Business Structure and Performance - The company's product structure has been further optimized, with significant progress in new business areas [1] - The smart control components segment showed remarkable performance, with a revenue increase of 20.37%, becoming the core driver of the company's growth [1] - Revenue from household appliance controllers, a new direction in smart control components, surged by 65.64%, highlighting the company's technological innovation and market expansion capabilities in the smart home sector [1] - Other new directions in smart control components, such as automotive electronics and power electronics, also performed well, with a revenue increase of 22.67% [1] Structural Highlights in Smart Terminals and Applications - The company maintained its leading position in the commercial display equipment sector, with the Hiview interactive smart panel holding the top spot for 13 consecutive years and the MAXHUB conference panel leading the domestic conference market for 8 years [2] - Significant revenue growth of 56.55% was observed in commercial office computers and industrial computers, reflecting the company's alignment with the industry's digital transformation needs [2] - Revenue from audio-visual equipment and systems, including educational intelligent recording and conference audio-visual equipment, grew by 24.88%, driven by continuous breakthroughs in audio-visual technology, AI algorithms, and hardware collaboration [2] Strategic Positioning - The company's performance demonstrates its precise control over industry cycles, as it continues to expand into markets with significant growth potential, such as household appliances, automotive electronics, and power electronics [2] - The company is actively seizing opportunities presented by digital transformation, focusing on deepening its presence in the computer and audio-visual sectors to ensure sustained and stable business growth [2]

Core Insights - 2024 is a challenging year for global economic development, yet the company achieved a revenue of 22.401 billion yuan, a year-on-year increase of 11%, and a net profit of 971 million yuan [1] - The company initiated its Hong Kong stock listing plan, marking a new phase in its globalization strategy, transitioning from product and technology export to capital export [1][8] - A high dividend proposal was announced, distributing 6.8 yuan per 10 shares, totaling 472 million yuan, which represents 48.57% of the net profit [1] Business Performance - The company optimized its product structure, with the smart control components segment showing a revenue increase of 20.37%, driven by significant growth in household appliance controllers, which surged by 65.64% [2] - The commercial display equipment sector maintained its industry leadership, with the company's products aligning well with digital transformation needs, resulting in a 56.55% revenue increase in commercial and industrial computers [2] Technological Advancements - The company invested 1.54 billion yuan in R&D in 2024, resulting in over a thousand new patents, with more than 35% being invention patents, showcasing its innovation capabilities [4] - Key breakthroughs in AI technology are being translated into practical applications, with the launch of the Xiwo Teaching Model 2.0, which integrates AI into educational settings [5] Global Expansion - The company achieved overseas revenue of 4.35 billion yuan, a year-on-year increase of 16.83%, reflecting its accelerated globalization strategy [7] - Partnerships with major tech companies like Microsoft and Intel have led to the launch of certified meeting products, enhancing its presence in international markets [7] Capital Market Strategy - The planned H-share listing is expected to diversify financing channels and enhance global brand value, particularly in high-value markets like Europe [8] - The company's growth trajectory in 2024, marked by double-digit revenue growth, indicates successful market expansion and strategic depth in technology investment [8]