EDIFIER(SZ:002351) Tai Ping Yang·2024-04-29 02:02Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the CSI 300 index in the next six months [13][20]. Core Insights - The company reported a significant increase in profits for Q1 2024, with core businesses in headphones and audio equipment experiencing rapid growth [13]. - In 2023, the company achieved a revenue of 2.694 billion yuan, representing a year-on-year growth of 21.64%, and a net profit of 420 million yuan, which is a 70.17% increase [3][10]. - For Q1 2024, the company recorded a revenue of 679 million yuan, up 25.08%, and a net profit of 109 million yuan, reflecting a 43.44% increase [3][10]. Financial Performance - The gross profit margin for Q1 2024 was 40.08%, an increase of 5.56 percentage points year-on-year, attributed to improved product mix [4]. - The net profit margin for Q1 2024 was 18.18%, up 2.85 percentage points year-on-year, driven by the increase in gross profit margin [4]. - The company plans to distribute a cash dividend of 2.00 yuan per 10 shares to all shareholders [3]. Product and Market Development - The company launched several new products in 2023, including gaming mice and headphones, and expanded its product matrix with the introduction of open Bluetooth headphones in March 2024 [5][11]. - The domestic sales strategy includes a "regional exclusive distributor system," with hundreds of distributors across the country, while online sales on major platforms like JD and Tmall are leading the market [5]. - Internationally, the company has seen rapid growth in e-commerce channels such as Amazon and Lazada, with positive user feedback and brand influence [5]. Business Segmentation - In 2023, the company's revenue from headphones, audio equipment, and automotive audio products reached 1.791 billion yuan (+22.48%), 828 million yuan (+20.65%), and 11 million yuan (+11.90%) respectively, indicating strong growth in core business areas [10]. - Domestic revenue was 2.072 billion yuan (+17.90%), while overseas revenue grew significantly by 36.02% to 621 million yuan [10]. - The company's distribution model saw revenue from distribution and direct sales reach 1.812 billion yuan (+29.28%) and 621 million yuan (+7.37%) respectively, with distribution business showing rapid improvement [10]. Future Outlook - The report anticipates that the company will benefit from the growth of the smart speaker market, leveraging its hardware advantages in collaboration with software partners [13]. - The TWS (True Wireless Stereo) headphone segment is expected to enhance market share through strategic positioning in the mid-range segment, while AI and open wireless headphones are projected to contribute additional revenue [13]. - Forecasted net profits for 2024, 2025, and 2026 are 531 million yuan, 629 million yuan, and 723 million yuan respectively, with corresponding EPS of 0.60, 0.71, and 0.81 yuan [14].