Investment Rating - The investment rating for the company is "Outperform the Market" [5][27]. Core Views - The company continues to experience high growth in innovative display products, with a 50.4% year-on-year increase in revenue for these products in Q1 2025. The overall revenue for Q1 2025 reached 3.142 billion yuan, representing a 10.8% year-on-year growth [2][5]. - The gross margin improved both year-on-year and quarter-on-quarter, reaching 13.36% in Q1 2025, with a year-on-year increase of 0.75 percentage points and a quarter-on-quarter increase of 1.76 percentage points [1][2]. - The company’s smart TV shipments increased by 31.0% year-on-year in Q1 2025, with sales revenue growing by 5.9% [1][2]. Summary by Sections Financial Performance - In Q1 2025, the company reported a net profit of 215 million yuan, which is a 15.8% increase year-on-year but a 22.0% decrease quarter-on-quarter [1][2]. - The revenue from smart interactive display products and smart TVs also showed significant growth, with respective year-on-year increases of 10.0% and 5.9% [1][2]. Revenue Forecast - The company expects its net profit to grow by 24.1%, 24.5%, and 12.7% for the years 2025, 2026, and 2027, reaching 1.035 billion yuan, 1.289 billion yuan, and 1.452 billion yuan respectively [2][4]. - The projected price-to-earnings (PE) ratios for 2025, 2026, and 2027 are 14.9, 12.0, and 10.6 respectively [2][4]. Market Trends - The company’s innovative display products are benefiting from strong domestic market performance driven by national subsidy policies, which have positively impacted order growth in the domestic OEM market [2][5]. - The company’s brand KTC achieved a shipment volume of approximately 600,000 units in Q1 2025, with a year-on-year growth of 50% [2][5].
康冠科技：创新类显示产品延续高增长，1Q25毛利率同环比改善-20250519