The company released 2024Q3 results:

24Q3: revenue of 680 million yuan (-14.3% year-on-year), net profit attributable to the parent company of -40 million yuan (-577.2% year-on-year); net profit after deducting non-attributable to the parent company was -50 million yuan (-201.4% year-on-year).

24Q1-3: revenue of 2.28 billion (-5.8% year-on-year), net profit attributable to the parent company -40 million (-146.8% year-on-year); net profit after deducting non-attributable to the parent company was -60 million (-252.5% year-on-year).

Revenue analysis

Domestic sales: Q3 revenue is expected to be 400 million+, a double-digit year-on-year decline. Refer to the domestic sales of Lotu intelligent projection, and the industry volume / sales volume are -6%/-10% respectively. The company actively responds to the K-shaped consumption differentiation trend in the industry to adjust the product structure, with the implementation of the trade-in, some provinces and cities expand the national subsidy to the projection category, Q4 demand is expected to be boosted.

Export sales: Q3 revenue is expected to be 200 million+, flat or slightly increased year-on-year, and the growth rate is expected to be North America> Europe > Japan. In September, the company participated in IFA Berlin and launched new products such as AURA 2 and MoGo 3 Pro.

Vehicle: In October, two on-board fixed-point projects were announced, namely the intelligent cockpit project for the supply of new models in the field of BAIC New Energy and the Marelli intelligent headlight project, which is expected to contribute to the new increment of the accelerated development of vehicles.

Profit analysis

Gross profit margin: 24Q3 gross profit margin year-on-year/month-on-month -1.4/-2.1pct, which is expected to be mainly due to the destocking of old products and the delay in some revenue recognition. With the further adjustment of the product structure and the end of destocking, the gross profit margin is expected to gradually recover.

Net profit margin: 24Q3 net profit margin attributable to the parent company was -5.7/-5.2pct year-on-year/month-on-month, and sales/management/R&D/finance were +2.4/+0/+2.1/-0.1pct respectively.

Investment Advice:

Our Opinion:

The company's smart projection maintains a leading share in domestic sales, and the deep cultivation of export sales to Europe, the United States and Japan is the main development engine, and the vehicle is expected to further open up the growth space.

Profit forecast: We adjust our earnings forecast, and expect the company's revenue to be 34.1/37.2/4.08 billion yuan in 2024-2026 (previous value of 37.4/41.2/4.57 billion yuan), a year-on-year increase of -4%/+9%/+10%; The parent company was 0.0/0.8/150 million yuan (previous value 1.1/2.3/320 million yuan), -99%/+6532%/+93% year-on-year, and the corresponding PE was 4321/65/34x, maintaining a "buy" rating.

Risk Warning:

Overseas growth is less than expected, cost control progress is less than expected, and new products are less than expected.