SONAVOX(SH:688533) Soochow Securities·2024-05-05 01:00Investment Rating - The investment rating for the company is "Buy" [12][3]. Core Insights - The company reported a revenue of 2.33 billion in 2023, a year-on-year increase of 32%, and a net profit attributable to shareholders of 160 million, up 82% year-on-year [3][12]. - The first quarter of 2024 showed a revenue of 600 million, with a quarter-on-quarter increase of 32% and a year-on-year increase of 13% [3][4]. - The gross profit margin for Q1 2024 was 24.7%, reflecting a year-on-year increase of 3.2 percentage points [4]. Financial Forecast and Valuation - The company’s total revenue is projected to reach 3.16 billion in 2024, 3.79 billion in 2025, and 4.58 billion in 2026, with year-on-year growth rates of 36%, 20%, and 21% respectively [12]. - The net profit attributable to shareholders is expected to be 230 million in 2024, 292 million in 2025, and 378 million in 2026, with corresponding year-on-year growth rates of 45%, 27%, and 29% [12]. - The latest diluted EPS is forecasted to be 1.44 in 2024, 1.83 in 2025, and 2.37 in 2026, with a P/E ratio of 20, 16, and 12 respectively [12][11]. Expense and Profitability Analysis - The company’s expense ratio for 2023 was 15.47%, an increase of 1.9 percentage points year-on-year, with significant increases in financial expenses due to higher interest payments [2]. - The overall gross margin for 2023 was 25.5%, an increase of 5.2 percentage points year-on-year, attributed to higher prices for overseas acoustic products and a decrease in raw material costs [11].