With display, interactive control and connection technology as the core, and continuous expansion for multiple application scenarios: The company was founded on December 28, 2005. It is an intelligent electronic product and solution provider with display, interactive control, and connection technology as the core. It has always been committed to improving user experience through R&D, design and product innovation, and continuously creating value for customers. Since its establishment, the company has relied on the accumulation of software and hardware technology in the fields of audio and video technology, signal processing, power management, human-computer interaction, application development, system integration, etc., to carry out technological innovation and product development for multiple application scenarios, continuously enrich and extend the product structure, and gradually gain a leading position in market segments through product and resource integration capabilities. At present, the company's products and comprehensive solutions have been widely used in the consumer electronics field and commercial electronics field. Specifically, it can be divided into component business, education business, enterprise service business, overseas business, etc. The main products of the company's component business are LCD main control boards. LCD main control boards are one of the core components of LCD products. Downstream customers include LCD TV brands such as Xiaomi, TCL, Hisense, Skyworth, Haier, Changhong, Konka, and SHARP, as well as OEM and ODM manufacturers in the LCD TV industry. According to statistics from Aowei Cloud Network, global LCD TV shipments in 2020, 2021, and 2022 were 228.7517 million units, 214.355 million units, and 20,5483 million units, respectively. The sales volume of the company's LCD TV main control board cards in 2020, 2021, and 2022 was 71.309 million units, 67.7731 million units, and 67.226 million units, respectively, accounting for 31.17%, 31.57%, and 33.19% of global LCD TV main control board shipments in each phase. In addition to LCD TV main control boards, the company has expanded into new directions such as power modules, IoT modules, and projection. In terms of customers, the company is also actively expanding overseas customers such as Samsung, LG, and Arcelik. The company's interactive smart tablet is mainly used in education digitalization, enterprise digitalization and other fields. The company's education business brand seewo (seewo) is a provider of digital education application tools and services. As the pioneer of the domestic interactive smart tablet category, seewo (seewo) won the top market share in China's interactive smart tablet industry for 11 consecutive years (2012-2022), with teaching applications covering 7 million teachers.

The company's Siwo learning machine products are clearly positioned. At this stage, they mainly serve school age groups aged 3 to 12, mainly W series learning machines and V1 series learning tablets. Among them, the W series learning machine focuses on the enlightenment and companionship of young children to help them enhance their interest in learning and develop study habits. This product still has a strong competitive advantage in the underage market. The V1 series learning tablets are Sivo's products mainly aimed at elementary and beginner students.

The AI wave has arrived, actively deploying AI+ education and other fields: According to the investor exchange minutes released by the company on August 25, 2023, the company established the Central Research Institute in 2014. The main research directions include visual computing, signal processing, natural language processing, and speech recognition. At the same time, the company has formed a dedicated team to be responsible for research work in the field of AI, which is gradually being applied to actual scenarios such as corporate education business and enterprise service business. Based on continuous accumulation in the industries it has entered, on the one hand, it trains and develops professional models in vertical fields, and on the other hand, it strengthens cooperation with large external model enterprises, and continuously enhances the company's product capabilities in the fields of education and corporate services. In the future, the company will continue to increase R&D investment in technology and product innovation, strengthen talent and team building in algorithm research, technology development, and product innovation, and continue to provide customers with higher value products and services. In terms of empowering AI models, according to the investor exchange minutes released by the company on October 24, 2023, the big AI model effectively assists in solving teachers' teaching problems in classrooms. Taking the software platform “Siwo Classroom Intelligent Feedback System” as an example, it can help teachers perform 3D classroom restoration, complete traceability of teacher-student interaction, professional analysis of classroom teaching data through AI functions such as teacher tour trajectory and classroom interaction analysis, and can provide timely feedback. It can also automatically optimize courseware based on teachers' acceptance of feedback. On the Siwo learning machine, the company has also launched a number of new AI functions, such as a picture book intensive reading function, which can enable the protagonist of the story to speak and stimulate children's interest in reading. The AI companion reading function can communicate with children, lead children to read, think, ask questions, and express, and help children grow and accompany them. We believe that the application implementation of this wave of AI in many scenarios will be expected to truly enhance the user experience of terminal application scenarios and ultimately promote a further increase in the penetration rate of the terminal market.

Investment suggestions: We predict that in 2023-2025, the company will achieve revenue of 21.052 billion yuan, 24.258 billion yuan, and 27.272 billion yuan respectively, with year-on-year growth rates of 0.3%, 15.2%, and 12.4% respectively, and realized net profit of 1,526 billion yuan, 1,888 billion yuan, and 2,310 billion yuan respectively. The year-on-year growth rates are -26.4%, 24.4%, and 21.7%, respectively, and the corresponding PE is 21.1 times, 17.0 times and 13.9 times respectively. Considering the company's active deployment in the AI field, Downstream scenarios and overseas markets continued to expand, covering the first time, giving buy-A recommendations.

Risk warning: sluggish downstream demand, increased industry competition, product development and promotion falling short of expectations, overseas market development falling short of expectations