SONAVOX(SH:688533) Minsheng Securities·2024-04-30 05:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 27.40 CNY per share [1][3]. Core Insights - The company reported a revenue of 2.323 billion CNY in 2023, representing a year-on-year increase of 31.52%, and a net profit attributable to shareholders of 159 million CNY, up 82.40% year-on-year [1][3]. - The growth in revenue and profit is attributed to the expansion of the global automotive market, recovery in overseas demand, and changes in the structure of the Chinese automotive market [1][3]. - The company has seen significant growth in its product lines, particularly in automotive speakers, amplifiers, and AVAS, with respective revenue growth rates of 33.78%, 34.47%, and 51.01% in 2023 [1][3]. Revenue and Profit Analysis - In Q4 2023, the company achieved a revenue of 733 million CNY, a year-on-year increase of 29.10% and a quarter-on-quarter increase of 16.47% [1][3]. - For Q1 2024, the revenue was 598 million CNY, reflecting a year-on-year increase of 31.98% but a quarter-on-quarter decrease of 18.45% [1][3]. - The net profit for Q1 2024 was 58 million CNY, up 95.38% year-on-year and 12.93% quarter-on-quarter [1][3]. Cost and Expense Management - The company has improved its profitability through effective cost and expense management, alongside a decrease in raw material prices [1][3]. - The financial expense ratio increased due to higher interest expenses and exchange rate fluctuations [1][3]. Market Position and Product Development - The company has strengthened its market position in automotive speakers, achieving a market share of 23.32% in China by 2023, up from 20.66% in 2022 [1][3]. - The company is expanding its customer base and product offerings, including new products like digital amplifiers and AVAS, which are expected to drive future growth [3][4]. Financial Forecast - The company is projected to achieve revenues of 3.201 billion CNY in 2024, 4.196 billion CNY in 2025, and 4.833 billion CNY in 2026, with corresponding net profits of 258 million CNY, 365 million CNY, and 433 million CNY respectively [4][3]. - The earnings per share (EPS) are expected to be 1.61 CNY in 2024, 2.28 CNY in 2025, and 2.70 CNY in 2026, with price-to-earnings (PE) ratios of 17, 12, and 10 respectively [4][3].