EDIFIER(002351) 天风证券·2024-12-24 10:07Investment Rating - The report assigns an "Accumulate" rating to the company with a target price of 20.1 CNY, based on a projected 30x PE for 2025 [3][4]. Core Insights - The company is positioned as a leading brand in the domestic consumer electronics market, focusing on niche markets, product innovation, and brand development. It aims to leverage AI applications in headphones for new growth opportunities. The projected net profits for 2024-2026 are 5.07 billion, 5.96 billion, and 6.78 billion CNY respectively [3][51]. Summary by Sections Company Overview - The company has established itself as a prominent player in the audio industry since its inception in 1996, focusing on audio technology research and product application. It has developed a diverse product range including home audio, professional audio, automotive audio, and headphones [123][125]. Market Trends - The TWS (True Wireless Stereo) headphone market has shown steady growth, with global shipments reaching 390 million units in 2023 and a 5-year CAGR of 53%. The OWS (Open Wireless Stereo) headphones have also gained significant traction, with a 148% year-on-year increase in sales in Q1 2024 [2][18][19]. Financial Performance - The company has experienced a significant increase in revenue, with total operating income rising from 12.43 billion CNY in 2019 to 26.94 billion CNY in 2023. The net profit for 2023 was 4.2 billion CNY, reflecting a 70.2% year-on-year growth [85][76]. Product Strategy - The company has diversified its product offerings into various categories, including TWS, OWS, assistive listening devices, and gaming headphones. This strategy allows it to cater to different consumer needs and avoid direct competition with original equipment manufacturers [23][24][30]. Brand and Marketing - The company has built a strong brand matrix with multiple sub-brands to meet diverse consumer demands. It has effectively utilized social media and influencer marketing to enhance brand visibility and drive sales, particularly among younger consumers [60][75][120]. Future Outlook - The company is expected to maintain robust growth in the TWS and OWS segments, with projected revenue growth rates of 14% to 12% for the headphone business from 2024 to 2026. The gross margin for this segment is anticipated to remain high, reflecting the company's competitive pricing strategy [171][172].