Core Viewpoint - Liard's 2024 performance fell short of expectations, with a significant decline in revenue and net profit due to various factors including impairment losses and weak domestic demand [1][2]. Financial Performance - In 2024, Liard reported revenue of 7.15 billion yuan, a year-on-year decrease of 6%, and a net profit attributable to shareholders of -889 million yuan, marking a shift to loss [1]. - For Q4 2024, the company achieved revenue of 1.685 billion yuan, a 6% increase year-on-year, but net profit was -1.071 billion yuan, indicating a loss compared to the previous year [1]. - In Q1 2025, revenue was 1.664 billion yuan, down 8% year-on-year, with net profit of 77 million yuan, a decline of 24% [1]. Business Segments - In the smart display segment, revenue was 6.109 billion yuan, down 6% year-on-year, with a gross margin decrease of 1.61 percentage points to 27.70% due to weak domestic demand [2]. - The cultural tourism night tour segment generated revenue of 710 million yuan, a 5% decline, with gross margin down 6.38 percentage points to 17.79% due to intensified competition and weak market demand [2]. - The AI and spatial computing segment reported revenue of 307 million yuan, a 13% decrease, attributed to declining demand and delays in new product evaluations and production [2]. Development Trends - The impact of goodwill impairment is expected to be minimal moving forward, with Liard's goodwill balance at approximately 130 million yuan after a 632 million yuan impairment in 2024 [3]. - Liard's Micro LED products are progressing steadily, targeting mid-to-high-end clients with a pitch range of 0.4-1.8mm [3]. - The company is entering the embodied intelligence field, launching the OptiTrack optical motion capture system and establishing a joint laboratory for embodied intelligence solutions [3]. Earnings Forecast and Valuation - The estimated EPS for 2025 is maintained at 0.17 yuan, with a new estimate of 0.19 yuan for 2026, corresponding to P/E ratios of 35.8x and 32.2x respectively [4]. - The target price for Liard has been raised by 18% to 6.50 yuan, reflecting an upward adjustment in valuation due to advantages in Micro LED and embodied intelligence sectors, indicating an 8% upside potential compared to current levels [4].