SONAVOX(SH:688533) HTSC·2024-09-01 10:03Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 31.07 [1][4]. Core Insights - The company reported a robust revenue growth of 28.46% year-on-year in 1H24, with total revenue reaching RMB 1.238 billion. The gross profit margin remained stable at 24.79%, reflecting a slight increase of 0.66 percentage points year-on-year. The net profit attributable to the parent company was RMB 112 million, up 56.63% year-on-year [1][2]. - The growth was primarily driven by the speaker and amplifier segments, which saw revenue increases of 20.24% and 58.22% respectively. In Q2 2024, revenue was RMB 641 million, representing a year-on-year growth of 25.35% [1][2]. - The company is expected to benefit from the upgrade of cabin acoustic configurations and the expansion of new customer relationships, particularly with emerging players in the automotive sector [1][3]. Summary by Sections Financial Performance - In 1H24, the company achieved revenue of RMB 1.238 billion, a year-on-year increase of 28.46%. The gross profit margin was 24.79%, up 0.66 percentage points year-on-year. The net profit attributable to the parent company was RMB 112 million, reflecting a year-on-year growth of 56.63% [1][2]. - The breakdown of revenue by segments includes: - Automotive speakers: RMB 942 million, up 20.24% year-on-year - Automotive amplifiers: RMB 207 million, up 58.22% year-on-year - AVAS: RMB 59 million, up 62.43% year-on-year [2]. Future Outlook - For 2024, the company is expected to see continued growth driven by the implementation of new production capacities and improved material control. The anticipated growth from new customers such as Li Auto, NIO, Xiaomi, and Zeekr is expected to contribute positively to revenue [3]. - The company is also enhancing its production capabilities in Europe and Mexico, which is expected to improve its ability to secure contracts in the European and American markets [3]. Valuation Metrics - The projected revenues for 2024, 2025, and 2026 are RMB 2.91 billion, RMB 3.60 billion, and RMB 4.26 billion respectively. The net profit attributable to the parent company is expected to be RMB 249 million, RMB 322 million, and RMB 403 million for the same years [1][4]. - The company is assigned a 20X PE for 2024, reflecting a 25% discount due to its classification as an acoustic component manufacturer [1][4].