Event: Maxvision Technology released its 2024 semi-annual report. In the first half of 2024, revenue of 0.633 billion yuan was achieved, a year-on-year decrease of 21.26%; net profit to mother was 0.087 billion yuan, a year-on-year decrease of 31.27%.

The slight pressure on performance in the first half of the year was mainly due to delays in project acceptance affecting revenue recognition. The factors that had a big impact on the company's performance in the first half of the year mainly include the following aspects: 1. Due to delays in acceptance of some projects, the scale of operating income declined; 2. Affected by the settlement cycle, repayment of some projects was delayed, and the company calculated impairment reserves of 76.469 million yuan for various types of assets; 3. The company continued to maintain a high proportion of R&D investment in the first half of the year. R&D expenses were 71.7947 million yuan, accounting for 11.34% of revenue. By product: Smart port inspection system solutions/intelligent transportation and other/other industry product revenue was 4.94/1.35/ 0.004 billion yuan respectively, accounting for 78.07%/21.36%/0.57% of revenue, up -30.23%/+47.27%/-4.23% from the same period in 2023.

Winning bids for multiple projects helped the layout of the industry and further consolidated its leading position in the industry. In the first half of the year, the company successfully won the bid for the Jinshui River Port Expansion and Open Inspection Infrastructure Equipment Construction Project, the Zhongshan Bay Xincheng Project Joint Inspection Building Intelligent Project, the Harbin Taiping International Airport T1 Terminal Inspection Equipment Procurement and Installation Project, the Daxing Airport Business Aircraft Building International Corridor Construction Project, the Haikou Nangang “Second Line Port” Passenger Transport Inspection Point Material and Equipment Procurement Project, and the Gongbei Port Old Joint Inspection Building Border Inspection Fast Track and Related Supporting Facility Equipment Project; Haikou New Seaport and Nangang “Second Line Port” (Freight) Centralized Inspection and Construction Site Procurement Equipment Project, Wuliji Port perimeter protection and control Facility projects, weak electricity systems and supporting facilities informatization construction projects at Dandong Highway Port in Liaoning have further consolidated the leading position in the industry.

Innovative business delivery deepens AI applications, and technology empowers to lead a new model of smart supervision. In the first half of the year, with the successful delivery of multiple innovative business construction and R&D projects, the company continued to explore and deepen the all-round application of AI technology in the field of smart supervision, and promoted the innovation and upgrading of supervision models in business scenarios such as smart ports, intelligent transportation, and smart parks. The company uses the AIoT cloud platform as the core, links roadside intelligent sensing devices, and realizes global positioning, real-time positioning, trajectory monitoring and task guidance for park vehicles based on vehicle-road cloud collaboration technology, successfully integrating full-stack technologies such as edge AI sensing algorithms and cloud-side management capabilities into innovative supervisory business scenarios, leading the high-quality development of technology-innovative park supervision models.

Investment advice: The company is expected to achieve revenue of 1.677/1.959/2.425 billion yuan and net profit to mother 0.208/0.246/0.32 billion yuan in 2024-2026, corresponding to 22.2/18.8/14.4 times PE, maintaining the “gain” rating.

Risk warning: Order acceptance progress falls short of expectations, overseas expansion falls short of expectations, and technology implementation falls short of expectations.