SONAVOX(SH:688533) Huachuang Securities·2025-05-07 07:30Investment Rating - The report maintains a "Recommended" rating for the company, with a target price adjusted to 34.9 CNY [2][8]. Core Insights - The company's performance has been under pressure in recent quarters, but the overall growth logic remains intact. The revenue for 2024 is reported at 2.78 billion CNY, a year-on-year increase of 19%, while the net profit attributable to the parent company is 235 million CNY, up 48% year-on-year. For Q1 2025, revenue is 640 million CNY, a 6% year-on-year increase, but net profit has decreased by 53% to 27 million CNY [2][9]. Financial Performance Summary - The company achieved a revenue of 782 million CNY in Q4 2024, with a year-on-year increase of 7%. However, net profit decreased by 12% quarter-on-quarter and 42% year-on-year to 46 million CNY. In Q1 2025, revenue was 636 million CNY, with a 6% quarter-on-quarter increase but a 19% decrease compared to the previous quarter. The net profit for Q1 2025 was 27 million CNY, down 53% quarter-on-quarter and 40% year-on-year [2][9]. - The gross margin for Q4 2024 was 22.1%, down 5.7 percentage points year-on-year, while Q1 2025 saw a gross margin of 20.6%, down 4 percentage points year-on-year. The company faced high depreciation and labor costs due to the ramp-up of its Hefei factory, which reported a revenue of 22 million CNY and a loss of 24 million CNY for the year [2][9]. - The report projects the company's net profit for 2025 and 2026 to be adjusted to 284 million CNY and 355 million CNY, respectively, with expected growth rates of 20.7% and 25% [2][9]. Market Position and Growth Potential - The company has captured over 15% of the global market share in automotive speakers, leading the domestic market. Future sales are expected to increase from 90 million units to over 100 million units [2][9]. - The company is positioned as a pioneer in domestic substitution for high-end acoustic systems, covering most leading clients in the new energy vehicle sector, with potential for further client and project expansion [2][9]. - The business model is evolving from single component manufacturing to system component manufacturing and human services, which is expected to enhance barriers to entry and return on equity (ROE) [2][9].