Event: the company released its semi-annual report for 2023, with operating income of 393 million yuan for the reporting period, an increase of 0.42% over the same period last year; net profit belonging to shareholders of listed companies was 50.7142 million yuan, up 12.70% from the same period last year; net profit belonging to shareholders of listed companies after deducting non-recurring gains and losses was 33.7959 million yuan, down 1.37% from the same period last year

Building intercom products benefit from a significant reduction in the country's macro-control policy on the real estate industry.

Revenue from the company's building intercom products reached 243 million yuan in the first half of 2023, down 9.28% from the same period last year, mainly due to the impact on the real estate industry to a certain extent. The central government and various ministries and commissions have timely adjusted and optimized real estate policies and continuously introduced relevant deregulation measures, including supporting local cities to implement policies to meet rigidity and improve housing demand, optimizing the supervision of funds for the pre-sale of commercial housing, and increasing the construction and supply of indemnificatory housing. we will actively promote the transformation of villages in cities, solidly promote the work of guaranteed exchange buildings, and solve the housing problems of the broad masses. The building intercom industry continues to move towards digitization, intelligence, and science and technology. in the future, this business is expected to usher in new opportunities for the recovery and intelligence of the local property industry.

The company goes deep into smart medicine from the medical intercom to strengthen the layout of the "second curve" business growth. The revenue of the company's medical intercom products reached 48 million yuan in the first half of 2023, an increase of 1.97% over the same period last year.

Speeding up the construction of intelligent hospitals and accurately docking the medical and health service needs of the masses has become the "14th five-year Plan".

The key development goals of the medical industry during the period. The number of beds in medical and health institutions in China continues to grow, with an annual growth rate of between 3% and 11%. The company's products mainly include medical intercom, ICU visitation, intelligent bedside interaction, nurse station interaction whiteboard, triage queuing. The company takes the construction of wisdom ward and wisdom clinic as the business core, vigorously expand the application of related industries in the field of wisdom hospital, and create a potential business growth point for the company.

Smart home business access Tmall elf AIoT, take the AI Dongfeng. The company has become a strategic partner with BABA Smart Internet and jointly developed a new generation of intelligent central control screen. According to IDC data, the sales volume of the whole house intelligent market in China will exceed 10 billion yuan in 2022, and the compound growth rate will reach 46.9% in the next five years. According to Oweyun data, in 2022, the company's smart home system products have ranked among the top five in the market share of fine decoration of commercial housing. At the same time, the company is also committed to the miniaturization and edge-to-edge research of the AI algorithm model, so that AI can better empower all kinds of small computing devices. In the future, this business is expected to usher in opportunities with the development of AI and the improvement of smart home industry penetration.

Profit forecast: the company's building intercom business is expected to rebound with the real estate industry, continue to layout smart medical care and smart home as the second growth curve. It is estimated that the 23-25 year revenue of the company is 1.682 billion yuan, and the net profit is 1.25 billion yuan. Cover for the first time, giving a "buy" rating.

Risk hint: the macroeconomic recovery is not as expected; the progress of financial innovation is not as expected.