GGEC(002045) 申万宏源·2024-07-01 00:01Investment Rating - The report initiates coverage with an "Overweight" rating for the company, citing its strong position in the AI-driven smart speaker market and its potential for growth in VR/AR and automotive audio sectors [34][37][40] Core Views - The company is a global leader in electro-acoustic manufacturing, with a strong focus on smart speakers, automotive audio, and VR/AR, which are expected to drive future growth [34][37] - The smart speaker market is entering a new phase with AI integration, and the company is well-positioned to benefit from this trend due to its partnerships with major tech firms and its innovative product offerings [35][37] - The VR/AR sector is poised for significant growth, with the company being a key supplier of acoustic modules and expanding into full VR headset production [36][37] Financial Summary - Revenue is projected to grow from RMB 7.539 billion in 2024E to RMB 10.844 billion in 2026E, driven by smart speakers, automotive audio, and VR/AR [1][38] - Net profit is expected to increase from RMB 340 million in 2024E to RMB 510 million in 2026E, with a CAGR of 22.5% [1][38] - The company's gross margin is forecasted to remain stable at 15.1% from 2024E to 2026E, supported by a shift from OEM to higher-margin JDM models [1][38] Industry Analysis - The global smart speaker market is expected to rebound with the integration of AI models, which will enhance user interaction and drive demand for new and upgraded devices [73][74] - The VR/AR market is set to grow significantly, with major players like Apple and Meta leading the way, and the company is well-positioned to benefit from this growth through its acoustic module and VR headset production capabilities [102][103][116] Company Operations - The company has a diversified product portfolio, including smart speakers, automotive audio, and VR/AR components, with a strong focus on R&D and innovation [34][36][37] - It has established long-term relationships with major clients such as Baidu, Harman, and Logitech, which provide a stable revenue base and opportunities for growth [34][37][96] - The company is expanding its production capabilities, particularly in VR/AR, with plans to increase VR headset production to 1 million units annually and acoustic module production to 24 million units [116][120] Valuation and Projections - The company's P/E ratio is expected to decrease from 22x in 2024E to 15x in 2026E, reflecting strong earnings growth and a favorable valuation compared to peers [38][40] - Revenue from smart speakers is projected to grow at a CAGR of 27.1% from 2024E to 2026E, driven by AI integration and market expansion [1][38] - VR/AR revenue is expected to grow significantly, with the company benefiting from its position as a key supplier to major VR headset manufacturers [36][37][116]