LY iTECH(002600) GOLDEN SUN SECURITIES·2025-03-05 05:50Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [5]. Core Views - The company is positioned as a leader in platform-based manufacturing, focusing on AI terminal hardware manufacturing and exploring new opportunities in robotics, glasses, foldable screens, and servers [1]. - The company has a strong historical growth trajectory, with significant revenue and profit increases projected for the coming years, driven by advancements in AI technology and market expansion [9][24]. Summary by Sections Company Overview - Founded in 2006, the company initially focused on die-cutting and has since expanded its business through multiple acquisitions, including structural components, chargers, and new energy sectors [1][15]. - The establishment of an AI research center in 2024 aims to enhance manufacturing capabilities and explore applications in AI hardware [1][15]. Market Opportunities - The global market for AI-enabled smartphones is expected to grow significantly, with a projected penetration rate of 11% in 2024, increasing to 43% by 2026, leading to a shipment volume of over 550 million units [2]. - The company is expanding into the graphics card market, capitalizing on the growing demand for high-performance computing in data centers and AI servers [2]. Product Development - The company is a key supplier of components for XR devices, partnering with major clients like XREAL to provide essential parts for AR glasses [3]. - The humanoid robot segment is rapidly developing, with the company leveraging its expertise in automation and robotics to enhance product offerings [4]. Financial Projections - Revenue is expected to reach CNY 49 billion in 2025 and CNY 59 billion in 2026, with year-on-year growth rates of 22% and 21%, respectively [9][10]. - The company anticipates a net profit of CNY 2.3 billion in 2025 and CNY 2.97 billion in 2026, reflecting a growth of 30% for both years [9][10]. Business Segments - The AI terminal and communication segment generated CNY 176 billion in revenue in the first half of 2024, with a year-on-year growth of 29.8% [31]. - The automotive business saw a significant increase of 42.9% in revenue, reaching CNY 10 billion, driven by the growth of the global electric vehicle market [31]. - The photovoltaic storage segment faced challenges, with a revenue decline of 56.4% in the first half of 2024, totaling CNY 4 billion [31].