Event: the company issued a forecast of results for the first three quarters of 2023, which is expected to achieve a net profit of 27293.15-286.0855 million yuan in the first three quarters, an increase of 58.95% and 66.61% over the same period last year, and a deduction of 26517.95-277.3261 million yuan in non-net profit, an increase of 77.97-86.12%. In the third quarter, it is expected to achieve a net profit of 9865.47-111.8087 million yuan, an increase of 50% over the same period last year, and a deduction of 9717.28-10931.94 yuan for non-net profit, an increase of 60% over the same period last year.
Brand building boasts a turning point in the market and is expected to hit a new high for the whole year. The company grasps the era of speakers and TWS headphones, and becomes a leader in the domestic audio industry. The brand accumulates a good reputation as the main strategy.
The domestic consumption trend is biased towards performance-to-price ratio, and the price of the main products has both brand power and performance-to-price advantage in the market under 1000 yuan. 2) the company continues to increase investment in new product research and development and brand building, launching a variety of products for sports outdoor, game e-sports, hearing aids, female users and other subdivided scenes, the new brand "Huazai" and e-sports brand "rover HECATE" have great potential. Referring to the fact that the company accounted for a relatively high proportion of revenue in the fourth quarter of last year, taking into account the fact that stocks were prepared in advance in the fourth quarter of Singles Day, New Year's Day, and the lower reaches of the Spring Festival, as well as the company is expected to launch intelligent assistant products to drive revenue, the annual performance is expected to hit a new high.
There is great potential for overseas market expansion. About 20% of the company's revenue comes from exports, with a lower percentage and more room for improvement. In 2021, the company's monthly sales on the Lazada e-commerce platform for Southeast Asia will increase by one million yuan in half a year. Previously, the offshore business was blocked due to external conditions, and the company's overseas market expansion is expected to be greatly accelerated in the future. The increase in overseas business revenue while increasing the share is conducive to the increase of gross profit margin.
The market for intelligent assistants is taking shape and is expected to benefit very soon. At present, the headphone market for conference summary has been opened, and the integrated intelligent assistant market is emerging. On July 19, 2023, the company said on the investor interaction platform that it had signed an agreement with BABA's artificial intelligence company to jointly develop smart headphones. The company's brand and channel are expected to enable intelligent assistants to increase the demand and terminal value of the company's products. With reference to the current price of its headphones, the rise of potential profit margins is expected to quickly become a high percentage of profits in AI applications.
Maintain the "overweight" rating. We believe that the company is expected to become the core player in the wave of intelligent assistants in the future, and can greatly enjoy the development dividend of AI. After opening the third growth curve of speakers and headphones, we raise the company's performance forecast for 2023-2025 to 2775337733997 million yuan of operating income and 44997 million yuan of net profit to maintain the "overweight" rating.
Risk tips: AI technology promotes less than expected risk; raw material prices and labor costs rise risk; industry competition intensifies risk; macroeconomic risk.