occurrences

In the first three quarters of 2024, the company achieved revenue of 0.428 billion yuan, a year-on-year decrease of 5.87%; net profit to mother was 0.047 billion yuan, an increase of 17.15% over the previous year.

Key investment points

Starlight products began shipping to embrace the wireless transmission blue ocean market. Products such as e-sports mice and lapel microphones equipped with the company's Starflash chip are expected to be on the market before the end of this year. At the same time, the application of StarFlash chips has also progressed in the field of wireless audio. The company is collaborating with customers to develop a high-end wireless speaker. With its precise synchronization characteristics, the StarFlash chip makes the sound synchronization between multiple speaker combinations more accurate. While eliminating complicated signal cables and making the space cleaner, it provides a good listening experience and achieves three-dimensional surround audiovisual effects.

In addition, the industry standard for three-mode universal remote controls issued by the State Administration of Radio, Film, and Television's “Technical Requirements and Measurement Methods for Set-top Boxes” requires that three-mode universal remote controls should support three remote control methods based on infrared, Bluetooth, and Starlight. The company will also participate in the bidding project of the State Administration of Radio, Film, and Television and Telecom.

Active layout of industrial buses. By obtaining authorization from Beckhoff, we have established cooperative relationships with customers using EtherCAT slave chips as an entry point. EtherCAT slave chips are mainly used in various machine tools, industrial robots, smart factories, etc., to carry out data transmission and motion control in industrial processes. Its main advantages are low latency, accurate synchronization, can reach the nanosecond level, and the topology is very flexible. The industrial sector has long relied on imported chips. Since industrial production is uninterrupted once it starts, stability and reliability are critical considerations in this field. Industrial customers are wary of changing suppliers, but once a new supplier is successfully introduced, the stickiness of the entire industry chain will increase significantly. Although industrial chips currently account for a relatively small share of revenue, successfully entering the industrial control field is the beginning for the company to lay out the industrial communication industry. I believe that by establishing closer ties with customers, we will have long-term development in the industrial field.

Investment advice:

We expect the company's 2024-2026 net profit of 0.06/0.08/0.1 billion yuan, covering the first “buy” rating.

Risk warning:

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