Key elements of the report

The company is based on the main control board and developed into intelligent interaction. As a leading domestic enterprise in two major industries, the company continues to enrich and extend the product matrix, continue to expand market segments such as education business and corporate services, and rely on the product capabilities and good reputation accumulated in domestic business to continuously promote high-quality products overseas and provide services for well-known brands in the global industry.

Investment highlights:

Parts business: Build a foundation for steady development and actively explore new spaces. With years of software and hardware technology accumulation in the field, the company has carried out technological innovation and product development for multiple application scenarios, continuously enriched and extended the product structure, and gradually gained a leading position in the market segment through product and resource integration capabilities. It has become the world's leading supplier of LCD main control boards, and has established a high level of brand awareness. In addition to the original TV main control board, the company is also actively exploring new business development directions, such as providing inverter controllers, intelligent display modules, and human-computer interaction solutions for household appliances. We believe that with the spread of intelligence, the household appliances business market space is large, and with the company's investment in R&D, business revenue is expected to maintain considerable growth.

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Intelligent interactive tablet: The leading advantage is remarkable, and the dual driving force of education+enterprise helps growth. The company has product layouts in the field of commercial display and education, namely MAXHUB, the corporate service business brand MAXHUB in 2017 and the education service brand Shivo in 2008. They all rank in leading positions in the industry.

1) Education: The company's brand advantages are remarkable, with comprehensive coverage of three-tier customers. The To-B and To-G school education market focuses on education tablets, expanding software and hardware terminals, and comprehensively arranging smart classrooms; To-C has launched learning machines to create healthy and smart home learning spaces. Obtain market certification.

2) Enterprise: The trend of digitalization is remarkable, and there is plenty of room for market expansion. MAXHUB continues to iterate and innovate products and optimize services, strengthen marketing and brand promotion activities, refine distribution channels, and launch the “X+ Plan” to promote ecological partnerships. Currently, mainstream domestic conference software vendors have basically accessed, such as Tencent Conference, DingTalk Conference, Feishu Conference, HUAWEI CLOUD Conference, etc., to cooperate to launch high-quality customized services, enhance customer stickiness, and consolidate leading edge.

Overseas: Seize increased demand and explore growth paths. Currently, the penetration rate of interactive smart tablets in the global conference market is still very low. The market is still in its early stages, and there is plenty of space. While actively maintaining its stock market share, the company is seizing the opportunities brought by increased demand for education information technology equipment in India and some European countries and exploring new growth paths. Among them, MAXHUB and the Microsoft ecosystem became new hardware partners, joined Microsoft Teams Rooms, and launched the MAXHUB xCore Kit. The first batch of cooperative products have already been mass-produced and shipped, expanding the overseas enterprise service market and injecting more innovative vitality into the overall development of smart meetings.

Profit forecast and investment advice: The company's revenue for 2023-2025 is expected to be 217.85/249.61 billion yuan, respectively, with year-on-year growth rates of 3.79%/14.58%/15.98%, and net profit to mother of 18.21/21.47/ 2,642 billion yuan respectively. The year-on-year growth rates are -12.14%/17.89%/23.08%, corresponding EPS is 2.60/3.06/3.77 yuan, and PE corresponding to the closing price on December 24 is 16.67X/ 14.14X/11.49X Covered for the first time, a “gain” rating was given.

Risk factors: risk of macroeconomic fluctuations, sharp rise in prices of major raw materials, sluggish downstream demand, increased industry competition, falling short of expectations in product development and promotion, falling short of expectations in overseas markets