Suzhou Sonavox Electronics Co.Ltd(688533) (688533)
Expand from speakers to other products to build a complete acoustic industry chain. The company’s products cover vehicle speakers, vehicle power amplifiers and AVAs. In the first half of this year, the revenue proportion of vehicle speakers was 89%, and the revenue proportion of vehicle power amplifiers and AVAs was about 6% and 2%. The company’s car speaker business is leading in China. Through speaker products, the company gradually expands to car power amplifier and AVAs, and cuts into the supply chain system of new forces in car manufacturing and Huawei partners. It is expected that power amplifier and AVAs will be the elasticity of performance growth in the future.
The value of car acoustic system has increased, and the market space is large. The company has mastered the core acoustic technology. With the upgrading of consumption and the development of automobile intelligence, the field of automobile acoustics is no longer limited to the on-board sound system. Incremental products such as on-board power amplifier and AVAs expand the matrix of automobile acoustics products, and the value of a single vehicle will increase from 200-300 yuan to 1500-2000 yuan. According to the sales volume of passenger cars in China and around the world and the sales volume of new energy passenger cars, and considering the price, supporting volume and penetration rate of on-board speakers, AVAs and power amplifiers, it is estimated that the market space of automotive acoustics in China and around the world will be 18.43 billion yuan and 43.94 billion yuan in 2025, with compound growth rates of 28% and 27% respectively. The company has formed relevant core technologies in the four R & D directions of acoustic product simulation and design, vehicle sound effect design, acoustic signal processing design and digital speaker system design, and has competitive strength in the industry with technical advantages.
Extension category, on-board power amplifier and AVAs are new growth points. The global market share of the company’s on-board speakers in passenger cars and light commercial vehicles is 12.64%, and the market share in China is about 19%. Benefiting from the upgrading of consumption, the loading volume of speakers has increased and the value of single vehicle has increased. Speakers received orders from Tesla, Weilai, ideal, Weima, Huawei Jinkang, etc. On board power amplifier: increase penetration, cut into supporting new energy vehicles, and open up new growth space. Focus on expanding new energy customers, and digital power amplifier products enter supporting systems such as Weilai, Zero run, ideal and Huawei Jinkang. The requirements of relevant laws and regulations on new energy vehicles will improve the penetration of AVAs, and have obtained orders from traditional vehicle enterprises and new forces in vehicle manufacturing, which will grow rapidly.
Financial forecast and investment suggestion: it is predicted that the company’s EPS from 2021 to 2023 will be 0.48, 1.03 and 1.46 yuan respectively. The shortage of chip supply will affect the profit. According to the 22-year PE valuation, the comparable company is an automotive electronics related company, the 22-year PE of the comparable company is 56 times, the corresponding target price is 57.68 yuan, and the buy in rating is given for the first time.
Risk tip: the supporting volume of vehicle speaker business is lower than expected, the vehicle power amplifier business and AVAs business are lower than expected, the market space of acoustic industry and the supply of automobile chips.
