Brief performance review

On August 15, 2022, the company released its 2024 mid-year report. The company achieved revenue of 0.727 billion yuan, yoy +121.0% in the first half of '24; achieved a comprehensive gross profit margin of 13.6%, yoy+9.7pcts; achieved gross profit of nearly 0.1 billion yuan, an increase of 670.3% over the previous year; and adjusted net loss narrowed to about 0.2 billion yuan.

Management analysis

Fixed-Point & SOP & Sales - Continued to lead the world, automotive lidar increased nearly 5 times in the first half of the year. Leading the industry's downstream customer coverage, and sales volume has exploded. Total lidar sales in the first half of the year were around 0.243 million units, YOY +416%. Among them, automotive lidars sold about 0.234 million units, yoy +488%; robot-related lidars were about 8,900 units, yoy +21.9%.

On the product side - M3 has the ultimate performance, MX has the ultimate cost performance ratio. The new product has received targeted orders for various models from 5 customers. The M3 ultra-long-range lidar achieves a detection distance of 300 meters, maintaining mainstream sales prices while greatly improving product performance; MX satisfies a detection distance of 200 meters while drastically reducing costs, making it possible for models under 20w to be equipped with lidar.

Three fees are steady, and AI investment is increased, and the MARS intelligent manufacturing headquarters in the new park is expected to be put into use in Q3. The company's R&D rate in the first half of the year was 43.1%, yoy-31.8pcts. The company continued to increase investment in AI R&D, accounting for more than 40% of R&D personnel, and hired AI algorithm developers; sales rate 7.8%, yoy-4.4pcts; management rate 11.3%, yoy-40.5pcts.

The company joined the Hong Kong Stock Connect on June 11. We recommend that you follow it. We believe that lidar, as a general-purpose sensor, can be used not only in the automotive field, but is expected to continue to penetrate fields such as robots. As a leader in the field of lidar and AI+ robotics, the company is expected to continue to increase its market share as the industry grows rapidly in the future, and its revenue is currently growing rapidly.

Profit Forecasts, Valuations, and Ratings

The company's revenue for 24-26 is estimated to be 2.4/4.19/5.72 billion yuan, respectively, and net profit to mother of -0.29/0.04/0.09 billion yuan, respectively. The current price of the company's stock corresponds to the PS valuation of 3.0/1.7/1.3, maintaining a “buy” rating.

Risk warning

Risk of autonomous driving technology route change; risk of passenger car sales and autonomous driving penetration falling short of expectations; risk of lidar cost reduction falling short of expectations; risk of the international situation affecting overseas sales; risk of lifting the ban on restricted stocks.