occurrences

The company released its 2024 three-quarter report. The first three quarters achieved operating income of 0.467 billion yuan, an increase of 24.05% year on year, and net profit of 79 million yuan for the first three quarters, an increase of 51.12% year on year. The consolidated gross margin reached 47.13%, an increase of 4.09 percentage points over the previous year.

Key points of investment

AI and wireless help revenue continue to grow. Juxin Technology closely follows the trend of AI and wireless in the consumer electronics market, and is deeply involved in the Bluetooth audio SOC chip and end-side AI processor chip market.

The company adopted an active sales strategy, achieved a record high revenue in a single quarter, and continued to optimize the product and customer structure. The company has become a major supplier in the market in the field of wireless low-latency private agreement products, attracting cooperation from many well-known foreign brands, expanding from portable audio to home audio and smart home fields. In the Bluetooth speaker market, the company continues to increase its penetration rate and continuously expand its market share in the wireless audio chip market with low latency and high sound quality; in the low-latency, high-sound wireless audio chip market, the company will continue to grasp the trend of wired to wireless market segments, and achieve better results in markets such as wireless home theater audio systems, wireless gaming headsets, wireless microphones, and wireless transceiver dongles.

Continue to invest in R&D, and actively expand new markets with integrated accounting. The company increased R&D investment. The R&D investment in the first three quarters was 0.16 billion yuan, an increase of 33.76% over the previous year. The company continues to pay attention to the market demand for low-power, high-computing power end-side devices, and invests in new products in the field of home audio. An AI processor with integrated storage and computing has been introduced to many customers. It is mainly used for high-frequency audio noise reduction and vocal processing. In addition to audio noise reduction, it has been extended to other AI applications such as watches. The company's core architecture based on the CPU+DSP+NPU three-core heterogeneity has been successfully developed. Among them, the first technical implementation path for the company's NPU is an AI algorithm hardware acceleration engine designed based on SRAM in-memory computing (CIM) technology. The company's three-core heterogeneous end-side AI audio processor chip is in the promotion stage, and customers are developing end-side AI algorithms.

Investment advice:

We expect the company's 2024-2026 net profit of 0.1/0.15/0.21 billion yuan to maintain a “buy” rating.

Risk warning:

Product development and technological innovation fell short of expectations; industry competition increased risks; product promotion fell short of expectations.