Event: on August 22, 2023, rover released its semi-annual report 2023. 2023H1 realized total revenue of 1.189 billion yuan (+ 19.42%), net profit of 174 million yuan (+ 64.51%), and non-return net profit of 168 million yuan (+ 90.35%). 2023Q2 realized total revenue of 646 million yuan (+ 24.91%), net profit of 98 million yuan (+ 93.03%), and non-return net profit of 94 million yuan (+ 110.62%) in a single quarter.
2023Q2's new products contribute to the rapid growth of revenue, and sales at home and abroad are picking up rapidly. 1) from a quarterly point of view, 2023Q2 achieved a revenue of 646 million yuan (+ 24.91%), and the main company continued to increase investment in new product R & D and marketing to help the revenue side grow rapidly. 2) from the perspective of sub-business, the revenue of 2023H1's headphones, audio and car audio products reached 776 million yuan (+ 16.68%), 359 million yuan (+ 20.64%) and 6 million yuan (+ 29.74%) respectively, the two core businesses of headphones and audio showed a rapid recovery trend, and the car audio business achieved rapid growth. 3) from a regional point of view, 2023H1's revenue at home and abroad reached 962 million yuan (+ 18.20%) and 226 million yuan (+ 24.90%) respectively, and the recovery rate of overseas income was slightly faster than that at home.
The gross net profit rate of 2023Q2 has increased significantly, and the expense rate has been well controlled as a whole. 1) Gross profit margin:
2023Q2 gross profit margin of 37.68%, year-on-year + 4.31pct, to achieve a large increase, or due to the company's product structure optimization superimposed raw material price drop. 2) net interest rate: 2023Q2 net interest rate is 17.13%, year-on-year + 6.21pct, the increase is greater than the gross profit margin, the main company during the expense rate control is better. 3) expense rate: the 2023Q2 sales / management / R & D / financial expense rate is 10.85max 3.24max 5.81max 1.25%, respectively, which is + 2.01/-0.85/-0.64/-1.75pct compared with the same period last year. The increase in advertising and labor costs has led to an increase in sales expense rate, and the increase in financial income is mainly due to the increase in interest income caused by the transfer of part of the financial management deposit due to maturity.
The product end promotes the new and broadens the price belt at the same time, and the channel side continues to distribute both online and offline at home and abroad. 1) Product end: the company continues to push new and expand its own product matrix. 2023Q2 has successively launched new products such as game mouse G3M PRO, game headphone GX05, sports headphone X200BT, covering mouse, headset, audio and other categories; on May 18, 2023, the company released NeoBuds Pro2, a new product of TWS headphones with a price of 1199 yuan, broadening the price band of the company's headphones to more than 1000 yuan. 2) Channel end: a) domestic: the "regional exclusive general dealer system" is adopted offline. At present, there are hundreds of regional exclusive general dealers in the country; the online channel increases investment and leads the market in sales of e-commerce platforms such as JD.com and Tmall. B) overseas: the company maintains mutually beneficial and win-win cooperative relations with dealers all over the world and has achieved high growth and good reputation in international e-commerce platforms such as Amazon.Com Inc.
Investment suggestion: on the industry side, smart speakers as an entrance to smart homes, the industry may return to high growth under the AI model in the future. On the company side, it is expected to rely on the advantages of hardware sound effects and join hands with software algorithm partners to launch smart, good-sounding and compatible intelligent speakers through their own brands to share the development dividends of the industry; TWS headphone business is also expected to increase its market share through the middle of the card and the large model of AI. 2023H1 company's revenue and performance have achieved high growth, comprehensive consideration to raise the profit forecast. We estimate that the return net profit of the company from 2023 to 2025 is 591 million yuan for the return of the company to the parent, and the corresponding EPS is 0.46 to 0.59 and 0.66 respectively, and the current share price is 25.16 times for the PE of 28.09.
Maintain the recommended rating.
Risk tips: market demand is lower than expected, technological innovation impacts existing products, raw material prices fluctuate, energy prices and labor costs rise, and the company's management system cannot be adjusted in a timely manner.