Strategic layout achieves another victory. GCL Electronics (02251) enters a period of accelerated value growth.

On February 7, 2025, the groundbreaking ceremony of major projects in the first quarter of 2025 in Guangzhou was held in Wanqing Sand, Nansha District, Guangzhou. On that day, APT ELECTRONICS (02551), a Hong Kong-listed company, held the groundbreaking ceremony for its fully-owned subsidiary, Lingwei Vision Automotive Parts (Guangzhou) Co., Ltd. (referred to as "Lingwei Vision Greater Bay Area Headquarters"), which is one of the core projects of this major project kickoff. The event brought together hundreds of attendees, including key leaders from the Guangzhou municipal government, Nansha District government, industry experts, media professionals, and the management team of Jingke Electronics, to witness Lingwei Vision Greater Bay Area Headquarters as a benchmark project in the first quarter of 2025 in Guangzhou, helping the company to establish a leading position in the fields of intelligent car lights, in-car displays, AR-HUD (head-up display systems), and deeply integrate into the high-quality development process of the Greater Bay Area. The Lingwei Vision Greater Bay Area Headquarters project will focus on the research and production of intelligent automotive visual systems, with core products including intelligent ADB matrix adaptive headlights, intelligent dynamic interactive taillights, AR-HUD, ECU, and deeply integrating system integration, software and hardware development and testing, module development, modeling and structural design, and other technology research and development across the entire industry chain. Regarding the importance of the construction of Lingwei Vision Greater Bay Area Headquarters project, Xiao Guowei, Chairman of Jingke Electronics, stated, "The construction of Lingwei Vision Greater Bay Area Headquarters is an important strategic layout of Jingke Electronics in the field of intelligent automotive vision, further solidifying its technical advantages and market competitiveness in this field." Next, through the strategic layout of Jingke Electronics in the field of intelligent automotive vision, let us further explore how the company, in the increasingly prominent era of intelligent features in automobiles, is seizing the opportunity for industry upgrade and iteration through new technologies and new models. And what kind of development blueprint will this open up for the company? Anchoring in automotive intelligent vision, grasping the benefits of the times With the rapid development of the intelligent automotive industry, especially new energy vehicles, intelligence has become an important force driving industry transformation. Intelligent LED headlights, deeply integrating system integration, software and hardware development and testing, module development, modeling, and structural design, have surpassed traditional headlight technologies, meeting the rapid response and interactive control requirements of automotive intelligence. Although the penetration rate of LEDs in the headlight market has been completed, with the development of intelligent cars and autonomous driving technology, the demand for intelligent lighting is increasing, bringing huge opportunities for Chinese car companies and the local supply chain. Regarding the opportunities brought by automotive intelligence, Xiao Guowei, Chairman of Jingke Electronics, unveiled the strategic blueprint of the company in the field of automotive intelligent vision to the attendees. The Lingwei Vision Greater Bay Area Headquarters project will have a total investment of over 2.4 billion RMB, covering an area of approximately 72 acres, planning to build an intelligent visual product research and development center and a digital production base. After completion, the project will have an annual production capacity of over 700,000 sets of intelligent front light systems, 700,000 sets of intelligent taillight systems, and 200,000 units of vehicle-mounted HUD equipment, becoming the headquarters of Jingke Electronics in the automotive intelligent vision products and systems business sector. Xiao Guowei stated that the construction of Lingwei Vision Greater Bay Area Headquarters will effectively strengthen Jingke Electronics' technical accumulation and innovation capabilities in the field of automotive intelligent vision, comprehensively enhance its deep research and development, supply chain integration, and global market expansion capabilities in the field of intelligent vision, helping Jingke Electronics to build a more competitive core advantage in the automotive intelligent vision industry chain. In fact, through the company's financial report data, the construction of Lingwei Vision Greater Bay Area Headquarters project not only consolidates the company's core competitiveness but also provides a continuous source of growth momentum for the company's future performance. Currently, Jingke Electronics' business structure mainly covers three major sectors: automotive intelligent vision, high-end lighting, and new display. The automotive intelligent vision products mainly include intelligent car lights and automotive-grade LED devices and modules. High-end lighting products include high-end lighting devices and high-end lighting modules. New display products include LED devices and modules for direct-down or side-entry backlight LCD TVs. In recent years, with the trend of automotive intelligence, the business of automotive intelligent vision has been growing rapidly, expanding in scale, with revenue accounting for 5.3% in 2021, jumping to 43.4% by May 2024, becoming the strategic focus of the company's LED intelligent vision business. Regarding this development trend, the management of Jingke Electronics stated, "In the coming years, the company will continue to further explore and expand the segmented market, especially in the field of high-value components and modules in the automotive intelligent vision sector. In addition, the company will continue to deepen in some segmented areas of high-end lighting, such as accelerating penetration in the field of plant lighting applications, capturing more market share... Through these arrangements, the company's gross profit margin and economies of scale will be improved to a certain extent in the coming years." Building a vertically integrated supply chain, realizing high potential value From a deeper perspective, the construction of the Lingwei Vision Greater Bay Area Headquarters project by Jingke Electronics is also an important part of its deepening vertically integrated supply chain layout, laying a foundation for the long-term valuation growth of the company. GMTEight observed that Jingke Electronics, with "LED+" technology as its core drive, deeply integrates cutting-edge technologies such as integrated circuits, electronic control, software algorithms, sensor technology, and optical systems. The business has now been widely covered in the fields of automotive intelligent vision, new display, and high-end lighting. Leveraging the synergies of Jingke Electronics in the third-generation semiconductor LED industry chain, the company has already achieved full vertical integration of the "LED device-module-system" industry chain, establishing a complete industrial chain layout from core technology to end products. For example, in the field of automotive intelligent vision, Jingke Electronics is currently one of the first automotive lamp suppliers in the domestic industry chain to achieve vertical integration, covering everything from automotive-grade LED devices and modules to intelligent vision systems. With a vertically integrated layout, the company can quickly capture customer needs and product development trends, achieve precise research and development, rapid validation, quick iteration, and efficient production through synergistic innovation of cutting-edge technologies and products, significantly reducing the time.The development cycle of a new product.In terms of the construction of the Visual Greater Bay Area Headquarters project, this project undoubtedly further deepens the company's vertical integrated supply chain construction. The project focuses on the research and production of intelligent automotive visual systems, with core products including intelligent ADB matrix adaptive headlights, intelligent dynamic interactive taillights, AR-HUD, ECU, etc. It also deeply integrates system integration, software and hardware development and testing, module development, styling and structural design, and other full industry chain technology research and development. It not only enhances the company's competitive advantage in intelligent automotive vision, but also solidifies the company's "LED device-module-system" blueprint. In fact, the vertical integration of Jingke Electronics is not simply a process of adding links, but through core technology autonomy, manufacturing intelligence, and ecological coordination, forming a closed-loop competitiveness from materials to end products. This model not only enhances risk resistance, but also upgrades the company from a "supplier" to a "strategic partner" in the intelligent automotive supply chain, laying the foundation for long-term value growth. Combining the three-dimensional driving valuation value theory of "financial + technical + expectations", Jingke Electronics' three core business segments: automotive intelligent vision, new displays, and high-end lighting continue to innovate and grow steadily. Coupled with the high prosperity of the intelligent automotive track, the capital market will reevaluate its growth prospects, driving both the PE (price-to-earnings) and PS (price-to-sales) multiples to rise. In the latest performance forecast, Jingke Electronics pointed out in its financial report that, with the core competitiveness built on global synergistic development, the company expects to achieve a net profit attributable to the parent company of no less than 93 million yuan in 2024, an increase of not less than 40% from 2023; and achieve an adjusted net profit attributable to the parent company of not less than 130 million yuan, an increase of not less than 70% from 2023. Therefore, it is easy to predict that with the continuous release of the company's performance growth vitality, Jingke Electronics will have sufficient momentum to enter the value acceleration growth period.