Leading provider of informatization solutions for the commercial vehicle industry, overseas marketing network promotes global layout. As a leading AIoT intelligent IoT solution provider, Ruiming Technology has been deeply involved in the commercial vehicle field for more than 20 years and has gradually established a stable position in the global market. At the same time, with AI innovation leading the way, the company continues to advance steadily in the commercial vehicle monitoring and information technology business, showing strong growth potential. With the booming development of the Internet of Vehicles, the Internet of Things, and artificial intelligence technology at home and abroad, the company is also actively promoting an international layout, expanding its sales network through an overseas one-country, one-policy sales strategy, and has set up a number of overseas subsidiary offices. Promoting the localization and innovation of enterprises, and planning to enter the European front-end market, the profit margins are considerable in the future. Ruiming Technology leverages its technical advantages and industry experience to lay a solid foundation for subsequent continuous growth.

The core business has obvious advantages and significant potential for growth. Ruiming Technology's two core businesses — general commercial vehicle monitoring and commercial vehicle industry informatization products — have shown strong competitive advantages. With leading technology and diversified product systems, the commercial vehicle general monitoring business covers a wide range of application scenarios. In actual applications, its products not only meet the basic monitoring needs of various commercial vehicles, but also lay a solid foundation for industry informatization in terms of data collection, analysis and application. At the same time, the company actively lays out the field of informatization in the commercial vehicle industry to help customers improve operational efficiency and achieve fine management by providing high-value-added products such as intelligent scheduling systems and vehicle networking platforms. The synergy between the two major businesses has laid a solid foundation for the long-term development of Ruiming Technology, and also provides broad growth potential for future expansion in emerging fields such as connected vehicles and intelligent driving.

The industry has broad development space, and innovative technology leads the future. With deep technical accumulation and industry insight, Ruiming Technology actively lays out AI research architectures and cloud computing+big data technology systems to enhance product competitiveness through integrated solutions. The company's AI three-level R&D architecture has promoted the in-depth layout of the company's products in the field of vehicle road clouds through efficient chip adaptation, high-precision algorithms with low energy consumption, and multi-scene intelligent applications. At the same time, through cloud computing and big data technology, the company has built a complete system covering equipment access, audio and video services, security management and data analysis. This enables the company to efficiently improve traffic operation efficiency and driving safety through big data, and provide customers with more intelligent integrated traffic solutions. The company uses its technological advantages to open up new growth points in domestic and foreign markets, and will show strong development potential through the leadership of innovative technology.

Investment advice: Ruiming Technology is based on opportunities for integrated vehicle and road cloud construction, and actively lays out domestic and international markets. In the domestic market, the company has closely followed the accelerated pace of integrated vehicle road cloud construction, and has benefited from frequent favorable government policies, and has ushered in important development opportunities; in overseas markets, Ruiming Technology is gradually opening up a broad space in the European front-end market by successfully promoting intelligent solutions that meet European standards. With AI technology innovation and sufficient industry experience, the company is expected to seize opportunities and open up new growth space in the field of connected vehicles and intelligent transportation. Without considering Pebble Ion's Ruiming Technology, we expect the company's net profit to be 0.276 billion, 0.37 billion, and 501 million yuan respectively in 2024 to 2026, and EPS of 1.56, 2.10, and 2.84 yuan respectively. Corresponding to the current stock price PE, it is 30, 22, and 17 times, respectively, covered for the first time, and gives a “recommended” rating.

Risk warning: Overseas business development falls short of expectations; risk of exchange rate fluctuations; risk of uncertainty about the time point of divestment of subsidiaries and the reliability of related data.