LCD main control board industry: LCD main control board is one of the core components of LCD products, and its technology is constantly being improved and upgraded to meet the market demand for high-performance display equipment. According to the “Global TV Brand Shipment Monthly Data Report” published by Aowei Cloud Network, global TV shipments have remained around 0.2 billion units in the past three years. Since the establishment of this business, based on R&D and innovation, the LCD TV main control board provided by the company has been recognized by major domestic and foreign TV brand manufacturers, and has been in a leading position in the global LCD TV main control board industry for many years. The company's LCD TV main control board sales in 2021/2022/2023 accounted for 31.57%/33.19%/28.18% of global LCD TV main control board shipments in various periods.

Education information technology industry: According to iResearch's “2024 AIGC+ Education Industry Report”, education is one of the typical scenarios for AIGC applications. The competitive elements of implementation are mainly reflected in the three aspects of models and computing power resources, education industry understanding and experience, and vertical education data. The company's education business brand Seewo (seewo), as a digital application tool and service provider for education, has accumulated a large amount of experience and data, and actively promoted the deep integration of AIGC with education and teaching. For 12 consecutive years (2012-2023), Seewo (seewo) has won the top market share in China's educational interactive smart tablet industry, covering 8 million teachers. This business is expected to give the company an impetus for growth.

Enterprise service industry: The company's enterprise service brand MAXHUB focuses on the field of smart collaboration, with smart conference tablets as the core, with various terminal devices and software applications such as video conferencing terminals and commercial office terminals to provide differentiated solutions for enterprises of different sizes and types of organizations, and is further empowered through the company's self-developed MAXHUB smart meeting model to improve conference efficiency, office efficiency and operational efficiency, and help organizations achieve digital transformation. According to Digian Consulting's “2023Q4 China IFPD Market Research Report”, the MAXHUB brand has ranked first in China's conference tablet market share for 7 consecutive years.

New business: The company's power electronics business continues to explore and develop in the field of new energy, continuing to increase investment in core components, machines and systems in the fields of household energy storage, UPS, etc., gradually improving the product line, and striving to provide safe and efficient system solutions and services to customers around the world. The company has a strategic layout in the field of robotics and continues research on key robotics technologies such as AI algorithms and computer vision. In the commercial field, the company mainly focuses on the development of service robots and the formulation of solutions. The company's commercial cleaning robots have been used in some public places such as hospitals, libraries, office buildings and shopping malls, and continues to expand new application scenarios.

Profit forecasting, valuation and ratings: According to the company's announcement, the company's 2023 sales expenses due to product price cuts and global marketing will have a certain impact on the company's net profit, and this impact is likely to continue. We lowered the company's net profit forecast for 2024/2025 to 1.405/1.602 billion yuan, a decrease of 45%/48% from the previous one, and added the company's 2026 net profit forecast to 1.802 billion yuan, corresponding to PE14/12/11X. We are optimistic about the growth space brought about by the company's new business and maintain the “buy” rating.

Risk warning: LCD board revenue declined; new business expansion fell short of expectations.