Core Insights - TAL Education Group (好未来) reported a revenue of $575 million for Q1 FY2026, representing a year-over-year growth of 38.8% [1] - The company achieved an operating profit of $14.346 million, a significant turnaround from an operating loss of $17.33 million in the same period last year [1] - Net income attributable to TAL reached $31.282 million, marking a substantial increase of 174.4% year-over-year [1] Revenue Growth Drivers - The revenue growth was primarily driven by the steady expansion of the company's learning services and AI-driven smart hardware business [1] - Newly launched smart hardware products, including P4, T4, and S4, have helped the company reach a broader user base [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 173.70 [5][8]. Core Insights - The company is experiencing sustained demand growth, particularly in the AIoT sector, with significant opportunities in smart home applications and AI toys [2][4]. - The company plans to raise funds through a private placement to enhance its product lineup, focusing on Wi-Fi 7 and AI edge chips, which will support long-term growth [4][5]. - The developer ecosystem is thriving, with over 140,000 open-source projects on GitHub, indicating strong community engagement and innovation [3]. Summary by Sections Demand and Growth - In Q1 2025, the company reported a 30% year-on-year revenue growth in the smart home sector, with faster growth in industrial, energy, and healthcare markets [2]. - The company anticipates continued demand growth in Q2, driven by new applications such as AI toys [2]. Product Development and Strategy - The company is focused on a "processing + connectivity" strategy, with ongoing product upgrades and a commitment to maintaining a gross margin target of 40% [2][5]. - New products, including the P4, are entering mass production, while older products like ESP8266/ESP32 are seeing extended lifecycles due to high customer loyalty [2]. Financial Projections - The company forecasts revenues of RMB 2,632 million in 2025, with a net profit of RMB 461.47 million, reflecting a 36% increase from the previous year [7]. - The expected EPS for 2025 is RMB 2.94, with a projected net profit margin of 17.53% [7]. Capital Raising and Investment - The company plans to raise up to RMB 1.778 billion through a private placement, allocating funds for Wi-Fi router chips, AI edge chips, and the construction of a research center [4]. Market Position - The company aims to maintain its leading position in the Wi-Fi MCU market and expects the revenue contribution from smart home products to continue evolving [2].

M5Stack产品在教育和开发者市场快速增长，协同强化公司生态力； 2）技术侧： ①在云端，公司WiFi 产品用于数据传输，搭载第三方AI算法应用，如S3产品可对接字节跳动豆包、OpenAI的ChatGPT或百 度文心一言等应用；②在端侧，公司将AI算法应用在自身处理器中，如S3支持图像识别、语音唤醒和 识别等应用，P4也具备边缘AI功能； 3）产品侧： S3/P4等强化边缘AI功能，低功耗C61支持WiFi6并显 著强化连接性能，H4发布标志公司进入Thread/Zigbee市场。 风险提示：需求复苏不及预期、产品研发进展不及预期、智能化渗透率提升不及预期、新品放量不及预 期、行业竞争加剧的风险。 点击招商研究小程序查看PDF报告原文 乐鑫科技发布2024年报，全年收入20.1亿元，同比+40%；归母净利润3.4亿元，同比+149%。公司新客 户和新应用不断扩张，AIoT方案加速创新，收入和利润同比高增长。 2024全年收入同比高增长，利润增速远超收入增速。 2024全年收入20.1亿元，同比+40%；IC业务毛利 率43.9%，同比+3.35pcts；归母净利润3.4亿元，同比+149%；扣非净利润3.1 ...