Core Insights - Company reported a revenue of 1009.54 billion yuan for 2024, marking a year-on-year growth of 2.41% and a net profit of 26.65 billion yuan, up 144.93% [1] - The fourth quarter of 2024 saw a significant revenue increase of 27.13% year-on-year, with a revenue of 313.08 billion yuan [1][2] - The company’s gross margin for electronic components improved by 2.21 percentage points to 11.14%, driven by a higher proportion of high-margin components and enhanced production efficiency [2] Revenue Breakdown - Precision components and smart acoustic devices were key growth drivers, achieving revenues of 150.51 billion yuan and 262.96 billion yuan respectively, with year-on-year growth of 15.9% and 8.7% [2] - The smart hardware segment experienced a slight revenue decline of 2.6% due to product lifecycle adjustments, despite a significant increase in VR/MR product sales [3] Market Positioning - The company is strategically expanding into the XR industry, transitioning from wearable devices and smart speakers to VR/AR, positioning itself as a leading manufacturer in the virtual reality sector [3] - The global VR/MR device shipment is projected to reach 7.6 million units in 2024, a 12% increase year-on-year, benefiting the company as a core supplier [3] Future Outlook - The company is expected to see earnings per share (EPS) of 1.02, 1.21, and 1.44 for the years 2025 to 2027, maintaining a "buy" rating [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company has returned to growth in 2024, with a revenue of 1009.54 billion yuan, a year-on-year increase of 2.41%. The net profit attributable to shareholders reached 26.65 billion yuan, up 144.93% year-on-year, while the net profit excluding non-recurring items was 23.93 billion yuan, reflecting a growth of 178.30% [2][6]. - In Q4 2024, the company achieved a revenue of 313.08 billion yuan, marking a year-on-year growth of 27.13% and a quarter-on-quarter increase of 6.99%. The net profit for this quarter was 3.20 billion yuan, up 63.23% year-on-year, although it saw a significant quarter-on-quarter decline of 71.45% [2][6]. - The company’s precision components and smart acoustic products have shown strong performance, with revenues of 150.51 billion yuan and 262.96 billion yuan respectively, growing by 15.9% and 8.7% year-on-year. The smart hardware segment experienced a slight decline of 2.6% due to product lifecycle adjustments [12]. - The company is strategically positioned in the XR industry, benefiting from the integration of 5G and AI trends, with expectations for significant growth in VR/AR headsets as the next generation of smart human-computer interaction devices [12]. Financial Summary - The company’s earnings per share (EPS) are projected to be 1.02, 1.21, and 1.44 for the years 2025, 2026, and 2027 respectively [12]. - The gross margin for the electronic components business improved by 2.21 percentage points to 11.14% in 2024, driven by a higher proportion of high-margin components and improved production efficiency [12]. - The company’s total assets are expected to grow from 82,707 million yuan in 2024 to 104,221 million yuan by 2027, indicating a robust financial outlook [18].

Core Insights - The company reported a significant increase in net profit, achieving a growth of 144.93% year-on-year, with a net profit of 2.665 billion yuan for 2024 [3] - Revenue for 2024 reached 100.95 billion yuan, marking a year-on-year increase of 2.41% [3] - The company plans to distribute a cash dividend of 1.50 yuan for every 10 shares [3] Financial Performance - R&D investment amounted to 4.569 billion yuan, representing 4.53% of total revenue and 13.77% of the latest audited net assets [3] - The net cash flow from operating activities was 6.2 billion yuan, a decrease of 23.94% year-on-year [3] - Gross margin for 2024 was 11.09%, an increase of 2.14 percentage points, while net margin was 2.56%, up 1.53 percentage points from the previous year [5] Business Segments - Precision components business generated revenue of 15 billion yuan, up 15.85% year-on-year [4] - Smart acoustic products revenue was 26.3 billion yuan, an increase of 8.73% [4] - Smart hardware business revenue decreased by 2.57% to 57.1 billion yuan [4] Market Trends - The consumer electronics industry is experiencing a recovery driven by new technologies such as AI [3] - The company noted significant growth in sales of VR and MR products, with overall positive growth in smart wireless earphones and wearable products [4] - The integration of AI technology with smart hardware is expected to drive further growth in high-performance precision components and smart hardware products [5]