SONAVOX(688533) 国泰君安·2024-11-03 08:17Investment Rating - Maintains an "Overweight" rating with a target price increase to 43.75 RMB [5][13] Core Views - The company's Q3 2024 performance exceeded expectations, driven by new project ramp-ups and the digestion of high-cost inventory materials, leading to rapid revenue growth and improving profitability [3][5] - Revenue for the first nine months of 2024 reached 1.99 billion RMB, a 25.2% YoY increase, with net profit attributable to shareholders at 190 million RMB, up 76.9% YoY [5] - Q3 2024 revenue was 760 million RMB, a 20.1% YoY increase, with net profit attributable to shareholders at 80 million RMB, up 117% YoY [5] - Gross margin improved significantly to 28.8% in Q3 2024, up 3.97 pct YoY and 3.89 pct QoQ, while net margin reached 10.14%, up 4.5 pct YoY and 2.05 pct QoQ [5] - The company benefits from the automotive acoustics upgrade trend, with key clients like Huawei, Li Auto, and Xiaomi driving new vehicle deliveries and new product releases [5] Financial Summary - Revenue for 2024E is projected at 2.85 billion RMB, a 22.5% increase from 2023A, with net profit attributable to shareholders expected to reach 282 million RMB, up 77.3% YoY [6] - EPS for 2024E is forecasted at 1.76 RMB, up 0.18 RMB from previous estimates, with 2025E and 2026E EPS projected at 2.22 RMB and 2.88 RMB, respectively [5][6] - ROE is expected to rise from 12.2% in 2023A to 22.2% in 2026E, reflecting improving profitability [6] - The company's P/E ratio is projected to decrease from 34.03 in 2023A to 11.74 in 2026E, indicating potential undervaluation [6] Industry and Market Position - The company is a domestic leader in automotive acoustics, benefiting from the trend of increased speaker and amplifier configurations in electric and intelligent vehicles [5] - Key clients include Huawei, Li Auto, and Xiaomi, with new vehicle deliveries and orders driving growth [5] - The company is expected to expand its customer base and order book, leveraging its advantages in production capacity, manufacturing, and R&D [5] Valuation and Target Price - The target price is raised to 43.75 RMB, based on a 20x PE multiple for 2025E, up from the previous target of 31.60 RMB [5][13] - The current price is 33.81 RMB, with a 52-week price range of 20.45-48.70 RMB [7][8] - The company's market capitalization is 5.41 billion RMB, with a total of 160 million shares outstanding [8]