The leading manufacturer of acoustics in China has been ploughing the electroacoustic industry for nearly 30 years. Day key can be traced back to 1995, the company started from the traditional acoustic components business, through the integration of acoustics, structural components, electronic components business integration into the headset ODM manufacturing, to become a smart headset ODM manufacturer. At the same time, the company has further extended to the field of health care, launching its own brand of hearing aids Miaoyin, and there are a number of medical products under research. In 2022, the company's revenue from consumer electronics and health care accounted for 97.8% and 1.8% respectively.

Consumer electronics: rely on the core competitiveness, actively expand new products, new technologies, new customers. 1) Technical level: the company insists on independent research and development, and has innovative technology reserves such as LE Audio technology, open wearing headset technology and space audio technology, which has laid a solid foundation for the implementation of follow-up new projects and the development of new products. 2) customer level: by virtue of technological and manufacturing advantages, the company gets rid of the competition of homogenized low-end products, and reaches long-term and stable cooperation with international leading manufacturers such as Harman, Philips, Motorola, etc., to help the company achieve long-term and stable development; 3) product level: the company extends the layout of AR/VR glasses, making steady progress to the field of acousto-optoelectronic integration, and the product volume is expected to become a new performance growth point.

Health care: there is a broad space for market growth, and the second growth curve is constructed. 1) Medical hearing aids: according to China Industrial Research and Research, the global market for hearing aids is US $6.47 billion in 20 years and is expected to increase to US $8.33 billion in 25 years. The market share of the five major foreign hearing groups has reached 90%. Tianjian has entered the field of health acoustics in the past 17 years, differentiated layout of OTC hearing aids, and online sales, not only to bypass the monopolized market for testing hearing aids, but also to solve the pain points of new entrants to lay offline channels. 2) CGM:

According to Zhenshi Consulting and Huajing Industry Research, the global CGM market is US $5.7 billion in 20 years and is expected to grow to US $36.5 billion in 30 years. Dekang, Abbott Laboratories and Medtronic PLC have a market share of 99.5%.

Based on its own technology accumulation in acoustics and Bluetooth, Skykey is currently engaged in the research and development of CGM and other products.

With the continuous launch and mass production of new products, health care is expected to become the second growth curve of the company.

Profit forecast: as a leading acoustics manufacturer in China, the company continues to innovate and expand the industrial boundary and extend the layout of the health care field. We estimate that the return net profit of the company in 2023-25 is 1.41,2.00 and 306 million yuan respectively, and the CAGR in 2023-25 is 47.22%. Cover for the first time, giving a "buy" rating.

Risk tips: new product development is not as expected; consumer electronics demand slows; exchange rate fluctuation risk and so on.