Focus on the research and development and product application of audio technology: With “upholding the spirit of craftsmanship, empowering with sound” as its corporate mission, the company has focused on the research and development and product application of audio technology over the years. It has now developed into a high-tech enterprise and industry leading brand famous for its superb electroacoustic technology, famous brands, fine management, excellent manufacturing technology and product quality. The company has a professional team from product creativity to industrial design, product development, large-scale production, and independent marketing. The products cover home audio, professional audio, car audio, headphones, and headphones There are hundreds of models in several categories such as microphones. Relying on the company's strong new product and new technology R&D and design capabilities, comprehensive and excellent manufacturing capabilities, and precise product positioning, many products under the company's “EDIFIER Rambler” brand have repeatedly won the “Red Dot Design Awards” (Red Dot Design Awards), IF “Product Design Award” (iF Design Award), “CES Design and Engineering Award” (CES Design and Engineering Award), and “EDIFIER Rambler” The 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 high level of popularity and a good reputation in the industry. In recent years, the development of the wearable market has shown several trends: (1) with the gradual maturity of big data services, the user experience of health testing devices is gradually improving, and the number of corresponding users is also growing; (2) human-computer interaction is a key breakthrough direction, developing rapidly in terms of somatosensory interaction, voice interaction, eye tracking interaction, tactile interaction, etc.; (3) with the development of technology, the category of wearable devices is also rapidly expanding. As a well-known audio brand manufacturer, the company is expected to benefit from the market opportunities brought by continuous innovation in terminal hardware in the future.
The company is actively expanding overseas markets and reaching the world with the image of China's own brands: Today, the “Rambler” and “EDIFIER” trademarks have been registered as international trademarks in more than 80 countries and regions, including Germany, the United Kingdom, France, Italy, the United States, Canada, Japan, Australia, Russia, and Mexico. The company has formed product R&D and sales teams from different countries and built a marketing network to successfully sell products to the world. Product sales have ranked among the top in the same industry in the world. While developing the audio field, the company is actively exploring other emerging fields. In 2015, Dongguan Lifa Air Purification Systems Co., Ltd., a holding subsidiary jointly invested and established with Lifa Air Limited and Oy Lifa Air Ltd, was formally established. The company is mainly engaged in research, development, production and sales of air purification systems and related products. Since its establishment, the company has launched LA series air purifiers, vehicle purifiers, fresh fans, sterilizers, humidifiers and masks, etc., gradually expanding the product line.
Based on the basic strategy of “independent brand”, we will continue to strengthen brand building, moderately expand the brand's market investment, and increase market share. According to the investor survey minutes released by the company on May 16, 2023, the company has been paying close attention to the development of high technology and new technology. In the field of artificial intelligence, when permitted by future laws and policies, the company will continue to explore integration with the company's products by relying on its own technology in the field of electronics and acoustics.
Facing the trend of rapid smart hardware technology updates, short product iteration cycles, and increasingly diverse user needs in the era of mobile connectivity and AIoT, the company has built a specialized, international, and young R&D team with experience and vitality. The ideas of young managers, their ability to accept and respond to new technology have all promoted the company's accelerated development.
Investment suggestions: We forecast that the company's revenue from 2023 to 2025 will be 2,734 billion yuan, 3.304 billion yuan, and 3.772 billion yuan respectively, with year-on-year growth rates of 23.5%, 20.8% and 14.2% respectively, and net profit of 418 million yuan, 541 million yuan and 605 million yuan respectively. The year-on-year growth rates are 69.4%, 29.5%, and 11.9%, and the corresponding PE is 40.4 times, 31.2 times, and 27.9 times respectively. Considering that in the current industrial context where AI continues to sink to the end, terminal hardware is expected to usher in a new round of development opportunities. The company is a well-known audio terminal brand, and is also continuing to explore overseas markets, covering the first time, and giving a -A suggestion to increase its holdings.
Risk Warning: Downstream demand is sluggish, competition among peers intensifies, and new product development falls short of expectations