Edifier (002351) first coverage: Layout TWS headset welcomes Davis double click

TWS Headphones: Low penetration and high growth.

1, 2019 entered the first year of the outbreak.

In September 2016, Apple released the first AirPods, but the price was higher, and the experience such as sound delay and 失败:重查 wireless transmission stability was average. At this time, the product was in the market awareness promotion and consumer experience cultivation period.

0 Technology promotion, and chip vendors such as Qualcomm to support more stable solutions, flagship phones cancelled 3.

The 5mm interface and terminal prices have returned to a reasonable range, and the wireless headset market has shown a blowout growth.

According to the GFK forecast, the volume of global TWS headphones will be about 65 million units in 2018, and the output will be about 1/1 in 2019-2020.

500 million, we expect the market size to be 45 billion in 2020.

2. Consumers value the continuous iteration of sound quality, brand and function, and active noise reduction in the future.

Wireless Bluetooth headsets attract hundreds of millions of players. The 深圳桑拿网 overall structure mainly includes traditional sound quality manufacturers at home and abroad, domestic mobile phone manufacturers, and low-end white-brand products.

According to a Qualcomm survey report, consumers consider clear sound quality, brand trust, and functional specifications for product substitution. We are optimistic about sound quality brands, mobile phone manufacturers, and low-end low-price white cards in turn.

In addition, from the trend point of view, we expect that AirPods Pro is expected to lead TWS into the era of active noise reduction.

Edifier: Deploying TWS’s own brand opens a new space for growth.

1. Focusing on multimedia speakers for more than two decades, the layout of TWS has begun.

Edifier was founded in 1996 and has been focusing on multimedia speakers for 20 years. According to the company’s semi-annual report, the company seized the opportunity of the TWS market and even launched three products to mark the company’s official entry into the TWS headset array.

The company’s latest revenue for the first three quarters of 20197.

880,000 yuan, an increase of 30 in ten years.

13%, net profit attributable to mother 0.

80,000 yuan, an annual increase of 48.

7%, with a combined gross profit margin of 35%, an increase of 4 per year.

Twenty-six people, in part, benefit from the volume of TWS headphones.

2. Layout the independent brand of TWS earphones, based on sound quality to create cost-effective products.

The company has formed an organic combination of artistic conception of ID concept design and acoustic system, reasonable adjustment and matching of amplifier circuit and loudspeaker, and a cost-effective product optimization solution.

We think that the company has better R & D and first-mover advantages from multimedia speakers, wired Bluetooth headsets to layout TWS series wireless Bluetooth headset series 1-5, and we also based on the company’s wireless Bluetooth headsets with better quality in the 200-500 yuan price range(Third-party evaluation data of 30 products ranked 7/30), the company’s follow-up development of TWS headphones is optimistic from a comprehensive cost performance perspective.

Profit forecast: We forecast the company’s operating income from 2019 to 2020 will be 12 respectively.

85, 22.

5.2 billion, a year-on-year increase of 46% and 75% respectively, achieving net profit attributable to mothers1.

35, 2.

USD 8.3 billion, an increase of 153% and 109% respectively, corresponding to a PE of 49 and 24 in 2019-2020The value has improved, giving an estimated 30 PE in 2020, covering for the first time, and giving a “Buy” rating.

Risk Warning: Sales volume is less than expected; market competition risk