Product side: Lay out the three major scenarios of home, mobile, and car, and actively develop new air purification businesses. 1) Home scenario: Focus on speaker categories and have a rich product matrix, and actively promote smart TVs and multi-screen coordination; the smart speaker business is expected to share the development dividends of AI technology through sound effects advantages and brand cooperation that masters software algorithms in the future. 2) Mobile scenario: Headphone products focus on the mid-range market and continue to target the three major customer segments of Gen Z, women, and hearing-impaired people; in the future, they may benefit from the downward trend in the average price of the TWS headphone market and achieve an increase in market share through the mid-range card slot and higher cost performance ratio. 3) In-car scenario: Create an economical, fast and safe non-destructive replacement method, and the car audio business that relies on offline modification stores may gradually resume growth. 4) Air purification:
Joining hands with LifaAir to develop the field of air purification, future business is expected to rely on LifaAir's significant technical advantages and become the company's new growth engine with strong product competitiveness.
Build a multi-brand matrix to promote marketing, and combine online and offline to build a global business network.
1) Brand side: Build strong market competitiveness through its multiple brands, embed accurate marketing for the popular movie “Wandering Earth 2”, target the consumer desire of movie fans with technological attributes, and open up new ideas for product promotion. 2) Channel side: On the online side, China is expected to continue to expand emerging e-commerce platforms such as Pinduoduo and Douyin, with some individual products appearing on Amazon's BestSeller list; offline, the country has adopted an exclusive regional distributor system, and overseas regions have registered international trademarks in more than 80 countries.
Investment advice: The troika of products, brands and channels to jointly drive the company's growth.
On the product side, the smart speaker category in the speaker business benefits from the development of big AI models through cooperation with software algorithm companies; TWS headsets are expected to increase their market share through the mid-end of the card slot; continued strength in brands and channels may also boost the company's business scale expansion. We expect the company's net profit to parent in 2023-2025 is 3.10/373/423 million yuan respectively, the corresponding EPS is 0.35/0.42/0.48 yuan, and the current stock price corresponding to PE is 53.19/44.18/38.98 times. First coverage, giving a “recommended” rating.
Risk warning: rising raw material prices and labor costs, management risks due to expansion of business scale, exchange rate fluctuations, technical and market risks, etc.