Jinwu Financial News | According to Guoyuan International Development Research, Ruisheng Technology (02018)'s total revenue in 2024 was RMB 11.25 billion, up 22.0% year on year, and gross margin was 21.5%, up 7.4 percentage points year on year.
According to the bank, after the PSS acquisition was completed, the company's automotive acoustics business went hand in hand: 1) in the overseas market, the company occupied a high share of the world's first-tier car companies; 2) the domestic business also expanded steadily, continuing to supply high-end models from leading new energy companies, and exclusively supplying car speakers for a leading new generation car force, with shipments exceeding one million in the first half of the year. The consolidated revenue for 2024H1 and PSS related businesses was RMB 1.52 billion, and gross margin was 25.0%. The automotive business is becoming a new engine for the company's growth.
The bank said it predicts that the company's revenue from 2024 to 2026 will be RMB 264.5 (+29.1%), 299.3 (+13.2%) and RMB 338.6 (+13.1%), respectively, and net profit to mother of 16.9 (+128.6%), 21.6 (+27.9%) and 25.4 (+17.5%) billion yuan. The company's net profit is predicted to grow at an average rate of 23% over the next two years. According to the prudent principle, the bank believes that it is reasonable to calculate the company's valuation according to 1x PEG in 2025, that is, according to the 2025 23 times PE valuation, corresponding to the target price of HK$45 per share, there is room for an increase of 21.1% from the current price, and maintains a “buy” rating.
