Main points of investment
Deep ploughing car stereo for 30 years, car acoustics is scarce. After more than 30 years of development, Shangsheng Electronics has established a car audio product system covering the three business sectors of car loudspeaker system, vehicle power amplifier and AVAS, with the R & D and design capabilities of acoustic products, system solutions and related algorithms, and can provide customers with comprehensive product solutions. From a financial point of view, the company's revenue continued to grow, reaching 1.769 billion yuan in 2022, an increase of 36% over the same period last year. Loudspeaker business contributed to the company's main revenue, vehicle power amplifier and AVAS increased rapidly, and the proportion of loudspeaker / vehicle power amplifier / AVAS revenue reached 78%, 15%, 3%, respectively. The net profit returned to the home came to an inflection point in 2021 and reached 87 million yuan in 2022.
Domestic leader of car loudspeaker, leading in the world. 1) from the perspective of industry: with the rapid development of electrification and intelligence in the global automobile industry, car buyers have put forward higher requirements for the quality and personalized functions of sound playback of automobile acoustic system. Benefiting from technological progress, the unit price of car loudspeakers has increased; under the trend of electric intelligence + consumption upgrading, the number of bicycle loudspeakers is expected to increase, and the volume and price will rise to drive the total amount of vehicle loudspeaker industry up. It is estimated that the global industry scale will reach RMB 122 million in 2023-2025. 2) from the company's point of view: the company is a leading domestic white-brand car audio company. under the dual factors of the prominent cost advantage of white-brand audio and the obvious advantage of global delivery, the company's global market share exceeded 10% in 2022 and the domestic market share reached 20%. Showing a steady upward trend. The company's loudspeaker supporting customers include established car companies such as Ford and Volkswagen, as well as new car-building forces such as Tesla, Inc., NIO Inc., ideal, Selis and so on. The supporting customers are highly competitive, and the customer supporting advantages enable the company to rely on the advantages of technology and process capability. make full use of market opportunities, maximize the company's manufacturing advantages and capacity potential, and create new performance growth space.
The rapid increase of vehicle power amplifier and AVAS helps the company to enhance its competitiveness. 1) vehicle power amplifier: the configuration rate of power amplifier products in intelligent electric vehicles is higher. Based on the increasing trend of new energy vehicle permeability, the market share of vehicle power amplifier is expected to increase steadily. There are many participants in the global front car power amplifier market, and the industry concentration is low. A variety of Shangsheng electronics products form a synergistic advantage, which promotes the continuous expansion of power amplifier sales, with a growth rate of more than 200% in 2022. 2) AVAS: the introduction of mandatory regulations makes AVAS a necessary safety product for electric vehicles, promoting the continuous expansion of the scale of the AVAS industry. The unit price of the company's AVAS products has declined, and its revenue has increased significantly by winning by volume.
Profit forecast and investment rating: the leading industry in the white-brand audio industry continues to make efforts, and the power amplifier and AVAS are rapidly increasing. We estimate that the total operating income of the company in 2023 to 2025 will be RMB 24.19 shock 31.58 / 3.788 billion, and the net profit attributed to the parent company will be RMB 1.731 million, which is the same as the same period last year. The net profit attributed to the parent company is RMB 1.75max, RMB 356 million, respectively, compared with the same period last year, with a year-on-year comparison of + 100% and 53%, respectively. The corresponding EPS is RMB 1.7max, and the corresponding PE is 3.788 billion times that of 39-25-19. The company is given a "Buy" rating for the first time.
Risk tips: cyclical fluctuations in the automotive industry; sharp fluctuations in raw material prices; intensified competition in the industry.