GoerTek(SZ:002241)2025-05-12 03:14Investment Rating - The investment rating for GoerTek is "Buy" with a target price of Rmb25.000, indicating an expected share price return of 12.3% and an expected total return of 14.0% [4][12]. Core Insights - GoerTek announced its 2025 Employee Stock Ownership Plan (ESOP) with financial performance targets that remain unchanged from 2023. The revenue targets for 2025 and 2026 are significantly higher than CitiE and VAe estimates, while net profit targets are below those estimates, suggesting a conservative approach due to macroeconomic uncertainties [1][2]. - The ESOP will cover 6,302 employees, with an exercise price set at Rmb22.10, close to the latest closing price of Rmb22.27. This indicates a strategic move for employee retention amidst market volatility [3][4]. Financial Performance Targets - For 2025, GoerTek aims for a revenue of at least Rmb129.848 billion, which is 41% and 35% higher than CitiE and VAe estimates, respectively. The net profit target is set at Rmb2,611 million, which is 26% and 22% below the estimates [2][6]. - For 2026, the revenue target is set at Rmb154.879 billion, 59% and 46% higher than CitiE and VAe estimates, while the net profit target is Rmb3,047 million, 26% and 17% below the estimates [2][6]. Growth Drivers - The anticipated growth in 2025 is driven by the upgrade of MEMS microphones in AI smartphones, AI smart glasses, and non-iOS smart wearables. However, this growth may be partially offset by expected weak demand in game consoles and muted virtual reality (VR) demand [1][2].