Glonghui, August 29 | Southwest Securities Research Report on the 28th pointed out that due to sluggish downstream demand, the short-term performance of Vail Co., Ltd. (603501.SH) is under pressure. Q2 achieved revenue of 4.52 billion yuan in a single quarter, a year-on-year decrease of 18.3% and a month-on-month increase of 4.3%. The decline in revenue was mainly due to sluggish downstream demand and pressure on the company's product prices during the inventory removal process. During the reporting period, the company launched two global shutter sensors with a pixel size of only 2.2 microns for driver monitoring and occupant monitoring systems. With the introduction of more new design solutions, the scale of the company's automotive CIS business is expected to continue to grow and its share is expected to increase rapidly. The company completed the acquisition of Xilite and further expanded its analog solution product line. Xilite is one of the few domestic chip design companies that also has CAN/LIN transceiver chips. Its products can be used with automotive CIS to provide more systematic solutions and help continue to expand into the automotive and industrial markets. The bank gave the company 55 times PE in 24 years, corresponding to a target price of 117.7 yuan. Covered for the first time, giving it a “buy” rating.