GOERTEK(002241)：1Q24 EARNINGS BACK ON TRACK; POSITIVE ON VR/AR/ GAMING RECOVERY IN FY24/25E-格隆汇

机构：招银国际
研究员：Alex NG/Claudia LIU

　　Goertek’s 1Q24 revenue/attributed net profit of -20%/+257% YoY was largely expected by the market. 1Q24 revenue weakness was due to softer demand of gaming console products, while earnings improvement was driven by low base in 1Q23 and GPM recovery to 9.2% in 1Q24 (vs 7.0% in 1Q23). Looking into FY24E, we expect Goertek’s earnings will continue to improve QoQ given better AR/VR/gaming demand and overall GPM recovery. In longer term, we believe Goertek is well-positioned to capture opportunities in AR/VR product launches from major players such as Meta, Sony, Google, Samsung and Huawei. Maintain BUY with TP of RMB17.56, based on 25x FY24E P/E (7-yr hist avg).
　　1Q24 sales weakness mostly expected. Goertek reported 1Q24 revenue/ net profit of -20%/+257% YoY, largely in-line with expectations. Earnings improvement was mainly due to better GPM and low base in 1Q23. 1Q GPM improved YoY to 9.2% (vs. 7.0% in 1Q23), boosted by better utilization and cost management. We believe the weak 1Q24 revenue was mainly due to soft demand of Goertek’s multiple gaming/AR/VR products, such as Meta Quest 3 and Sony PS 5. We expect Goertek’s blended GPM will continue to recover to 10.5%/10.5% in FY24/25E (vs 8.9% in FY23), given improving utilization and continued improvement in hearable product margin.
　　2024/25 Outlook: Riding on “AI+XR” trend, PS5/Quest 3 ramp-up and gaming recovery. In addition to recovery in hearable product segment, we believe Apple’s Vision Pro MR product launch will boost AR/VR/XR industry development, and Goertek is well-positioned to capture the opportunities from AR/VR/XR product launches from major players such as Meta, Sony Google, Samsung and Huawei. Overall, we expect Goertek’s FY24E revenue /net profit to deliver +1%/+120% YoY growth.
　　Maintain BUY. We think Goertek’s industry leadership and product roadmap in XR/acoustics/gaming segments will allow it to benefit from industry recovery and MR product cycle in FY24/25E. We keep our FY24/25E EPS estimates and TP of RMB17.56, based on 25x FY24E P/E (7-yr hist avg). Maintain BUY. Upcoming catalysts include new XR product launches and continued margin recovery.