Incidents:
The company said it has signed an agreement with an artificial intelligence company under Alibaba Group to cooperate in the development of smart headsets, and related products are under development.
Comment:
AI empowers wireless headsets and is expected to start a new growth curve for the company. As an enterprise that has been deeply involved in the audio industry for nearly 30 years, the company has always developed new ideas around user needs and shaped a strong brand with an innovative spirit and keen insight into changes in the industry. Smart assistants are one of the most promising downstream application tracks for big language models. Terminal accessories such as headsets, audio, and mobile phones are important hardware for implementing smart assistants. The company fully attaches importance to the application potential of AI technology in smart headsets. The company and Alibaba's subsidiaries jointly develop smart headsets, which is expected to use Ali's technical capabilities on the software side to launch a new round of its own growth in this wave of intelligence.
As the only non-mobile phone brand manufacturer among the top five TWS headphone shipments in China in 2022, Rambler has an obvious card slot advantage. In the domestic market, Rambler already occupies a leading position, and achieved a 69.73% year-on-year increase in net profit after deducting non-attributable income in the first quarter of 2023, and sales of smart headphones continued to grow. At the same time, the company is speeding up the expansion of overseas markets and further consolidating its leading position as a third-party headphone brand. In 2022, 20.63% of the company's revenue came from exports and 79.37% from domestic sales. The gross margin of export business is 5.87 pct better than domestic sales business. If the share of overseas revenue increases in the future, it is expected to increase the company's profits.
23H1 profit increased sharply year over year. The company's 23H1 revenue was 1.19 billion yuan, an increase of 19.4%; net profit of Kimu was 170 million yuan, an increase of 64.5%. Among them, the headphone and headset series had revenue of 780 million yuan, an increase of 16.7%; the audio series had revenue of 360 million yuan, an increase of 20.6%; and the car audio series had revenue of 06 million yuan, an increase of 29.7%. The company continues to increase investment in R&D. The Rambler brand has become synonymous with high-quality audio and headphones. The domestic market has been far ahead in sales for many years, and has a good reputation and reputation in the industry. The company is expected to benefit from domestic consumption trends and the ability of AI to empower wearable products.
Profit forecast and investment rating: We expect the company's net profit to be 4.2/55/ 6.1 billion yuan in 2023-2025, respectively, an increase of 70%/30%/11% year-on-year, respectively. Covered for the first time, giving it a “buy” rating.
Risk warning: increased competition in the industry; changes in downstream demand;