HAOYANG(SZ:300833) GOLDEN SUN SECURITIES·2024-07-09 13:02Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][30]. Core Viewpoints - The company is a global leader in stage lighting, with a rich brand matrix and a focus on both manufacturing and brand development. It has established multiple well-known brands, including TERBLY, AYRTON, GSARC, GOLDENSEA UV, and WTC [1][17]. - The industry is experiencing expansion and optimization, driven by strong demand from the downstream entertainment sector and a favorable supply-side environment due to consolidation and technological advancements [2][25]. - The company's revenue and profit are expected to grow significantly, with projected net profits of 450 million, 554 million, and 677 million yuan for 2024, 2025, and 2026, respectively, reflecting a compound annual growth rate (CAGR) of 22.9% [3][4]. Summary by Sections Company Overview - Established in 2005, the company specializes in professional stage lighting, cultural tourism landscape and architectural lighting, UV disinfection products, and stage trusses. It operates both domestically and internationally through various brands [1][17]. Industry Analysis - Demand for lighting equipment in the entertainment sector is robust, with low price sensitivity due to the relatively small proportion of lighting costs in overall production expenses. The industry is benefiting from rapid recovery and product iteration [2][25]. - The supply side remains fragmented, but recent trends indicate increasing consolidation and a shift towards higher technological barriers, allowing domestic companies to capture more market share [2][25]. Financial Performance - The company has shown strong financial growth, with a revenue CAGR of 14.5% from 2017 to 2023 and a net profit CAGR of 38.4% during the same period. The shift towards higher-margin proprietary brands is enhancing profitability [27][28]. - Financial projections indicate a steady increase in revenue from 1.305 billion yuan in 2023 to 2.327 billion yuan by 2026, with corresponding increases in net profit [4][3]. Brand and Product Strategy - The company has developed a comprehensive brand matrix, with a significant focus on its proprietary brand TERBLY and the international brand AYRTON, which has seen substantial sales growth since its acquisition [17][28]. - The company emphasizes research and development, with a strong patent portfolio and a commitment to product innovation, which is expected to drive future growth [28][27].