Deeply ploughing the field of acoustics, recognized by well-known enterprises at home and abroad
With its rich market experience, leading design and R & D capabilities and manufacturing capabilities, the company has achieved outstanding advantages in the trend of wireless and intelligent in the electro-acoustic industry, and maintains close cooperative relations with many international and domestic well-known customers. A series of electro-acoustic products have been developed and manufactured for international well-known customers such as Harman, Beats, Skullcandy, House of Marley, PEAG, V-Moda, Pioneer, JVC, Audeze, Panasonic, Creative and domestic well-known customers such as Huawei, Mandemo Acoustics, Lenovo, Xi Ri Electronics, Anke, iFLYTEK, etc. 2019H1 has introduced Huawei, Skullcandy and other high-quality customers, and achieved large quantities of supply, Huawei and Skullcandy have successfully become company customers.
Increase production + improve automation capacity, profitability is expected to improve
The company raised 266 million yuan to invest in the construction of an intelligent factory for electro-acoustic products. After the implementation of the project, the company's production base can achieve a high degree of automation and flexibility in raw material control, parts processing and molding, product assembly, quality inspection, inventory control and other aspects, thus forming a full-process intelligent electro-acoustic product production base. The internal rate of return of the project is 19.50%, and the after-tax investment payback period is expected to be 6.70 years (static, including construction period). The average annual income will be 57 million yuan in the next 4.70. according to the company's estimate, the overall income of the project is 318 million yuan.
Audio-visual entertainment is the most important scenario where audio-visual products such as headphones and speakers play a role. The company's wireless headset products are growing rapidly, with 2019H1 up 144.89% compared with the same period last year. In the third quarter, the company's revenue rapidly expands, the market for wireless headphones is growing rapidly, the company has a high participation in the industry chain, the proportion of ODM continues to grow, and participates in components and solutions, as well as all the integration links of the whole machine. It is expected that the wireless headphone market will continue to benefit in the future. According to Counterpoint Research, only 9.18 million wireless headphones were shipped in 2016, and the market size is less than 2 billion yuan. Sales of TWS headphones reached $2 billion in 2017 and are expected to reach $5.376 billion in 18 years and $11.042 billion in 2020.
Investment suggestion: it is optimistic that the company will benefit from the continuous improvement of the penetration rate of TWS headphones in the future. the company is the main supplier of Android headphone brand, and 2019H1 has newly entered Huawei's supply chain. After the fund-raising project is put into production, it will continue to improve the company's automation, flexibility, R & D level, supply capacity and market share.
It is estimated that in 19-21, the company will achieve a net profit of 1.54 trillion yuan, with a target price of 65.5 yuan, and a "buy" rating.
Risk hint: the market boom of wireless headphones is lower than expected, the company's order is lower than expected, and the production of fund-raising projects is not as expected.