Actions(SH:688049) Capital Securities·2024-02-24 16:00Investment Rating - The investment rating for the company is "Buy" [1][2]. Core Views - The company is expected to achieve a revenue of 520 million yuan in 2023, representing a year-on-year increase of 25.41%, and a net profit attributable to the parent company of 65 million yuan, up 21.04% year-on-year [2]. - The company has successfully onboarded leading domestic and international brand clients across various product lines, contributing to steady performance growth [2]. - The gross profit margin is projected to reach 43.73% in 2023, an increase of 4.40 percentage points year-on-year, driven by a higher sales proportion of high-margin products and decreasing costs in wafer and packaging [2]. - The company is focusing on low-power, high-quality Bluetooth audio chips, with an anticipated increase in market share in the Bluetooth speaker segment, supported by continuous product upgrades and optimization [2]. - The smart watch chip segment is also expected to see significant growth, with record shipments in Q3 2023 and positive market feedback for the second-generation smart watch chip [2]. - Future plans include expanding into wireless communication technologies and leveraging the AI development trend to innovate in audio chip technology [2]. - Profit forecasts indicate net profits of 65 million yuan, 100 million yuan, and 150 million yuan for 2023, 2024, and 2025, respectively, corresponding to PE ratios of 50, 33, and 22 times based on the stock price as of February 22 [2]. Summary by Sections Financial Performance - The company is projected to achieve a revenue of 520 million yuan in 2023, with a growth rate of 25.48% in 2024 and 33.47% in 2025 [2]. - Net profit is expected to grow to 65 million yuan in 2023, 100 million yuan in 2024, and 150 million yuan in 2025, with respective growth rates of 21.05%, 53.10%, and 50.28% [2]. - The earnings per share (EPS) is forecasted to be 0.53 yuan in 2023, 0.82 yuan in 2024, and 1.23 yuan in 2025 [2]. Market Position - The company serves major domestic and international brands in the Bluetooth speaker market, including SONY, Harman, and Xiaomi, and is expected to increase its market share in the mid-to-high-end Bluetooth speaker segment [2]. - The transition from wired to wireless connections in the low-latency, high-quality product market presents both conversion and new demand opportunities [2]. Future Outlook - The company plans to deepen its focus on low-power, low-latency, high-quality technologies while expanding into WiFi6, UWB, and other wireless communication technologies [2]. - The strategy includes capitalizing on the AI trend to develop low-power AI computing technologies and audio ecosystem innovations [2].