SONAVOX(SH:688533) Guoxin Securities·2024-05-06 01:33Investment Rating - The report maintains an "Accumulate" rating for the company [12][50]. Core Views - The company's revenue growth is driven by the ramp-up of new products and orders from new energy clients such as NIO, Li Auto, Huawei, and BYD, with a significant increase in vehicle deliveries [11][14]. - The gross margin for 2023 was 25.48%, up 5.19 percentage points year-on-year, while the net profit margin was 6.83%, an increase of 1.92 percentage points year-on-year [6][11]. - The company is expected to maintain a high R&D expense ratio (not less than 6%) to strengthen its competitive edge in the automotive acoustic sector [23][46]. Financial Forecasts and Metrics - Revenue (in million CNY) is projected to grow from 2,326 in 2023 to 3,795 in 2025, with a compound annual growth rate (CAGR) of 25.9% [3][11]. - Net profit (in million CNY) is forecasted to increase from 159 in 2023 to 321 in 2025, reflecting a CAGR of 35.0% [3][11]. - Earnings per share (EPS) is expected to rise from 0.99 in 2023 to 2.01 in 2025 [3][11]. Revenue and Profitability - The company achieved a revenue of 2.326 billion CNY in 2023, a year-on-year increase of 31.5%, and a net profit of 159 million CNY, up 82.4% year-on-year [11][38]. - In Q1 2024, the company reported a revenue of 598 million CNY, a 32% increase year-on-year, and a net profit of 58 million CNY, reflecting a 95.4% year-on-year growth [11][38]. Market Position and Competitive Advantage - The company holds a leading market share in the automotive speaker segment, with a global market share of 13.11% in 2023 [42][46]. - The average value per vehicle for the company's products is expected to increase significantly as the product range expands from speakers to include amplifiers and AVAS systems [22][46]. Government Support - The company received government subsidies totaling 18.66 million CNY in Q1 2024, which positively impacted its other income [7].