\u3000\u3000 Chengdu Xgimi Technology Co.Ltd(688696) (688696)
Key investment points
Event: the company issued a performance pre increase announcement, and it is expected to realize a net profit attributable to the parent company of 480 million yuan in 2021, with a year-on-year increase of 80.1%; The net profit attributable to the parent company after deducting non-profit was 430 million yuan, with a year-on-year increase of 73.6%. Based on this, it is estimated that the net profit attributable to the parent company in the single quarter of 2021q4 is about 180 million yuan, with a year-on-year increase of about 89%; The net profit attributable to the parent company after deducting non profits is about 170 million.
The annual performance was excellent, and Q4 maintained high growth. Under the background of the overall lack of core in the industry in 2021, the company’s performance was excellent, and the annual net profit attributable to the parent company increased by 80.1% year-on-year. We believe that the main reasons are: (1) the penetration rate of consumer projector continued to increase. As the leader of the industry, the company has rich product matrix and good market performance, which promoted the substantial growth of revenue performance; (2) The gradual introduction of self-developed polishing machines and the increase in the proportion of sales of high-end products promote the improvement of profitability. The net profit attributable to the parent company of Q4 increased by about 89% year-on-year, of which the Gmv of the company’s double-1 network exceeded 800 million, with a year-on-year increase of 90%, and won the eighth consecutive title in projector sales. Combined with the company’s Q4 performance and double 1 1 performance, we expect the company’s excellent performance on double 1 1, double 12, Christmas and black 5 to be the main reason for the rapid growth of the company’s Q4 performance. On the other hand, the production capacity is tight and the company has few discount promotions, which objectively improves its profitability.
China has diversified channel layout, and the overseas product matrix has been gradually improved. China has focused on product development. This year, it has launched R S pro2, H3S, NEW Z6X and other products in the Chinese market to meet the needs of consumers at different levels. It has actively diversified channels, covering online Tmall, Jingdong and other major electricity providers, and vigorously layout the contents of tiktok and other electric providers, and actively open outlets under the line of distributors and direct outlets. In the overseas market, the company launched horizon and other products, improved the product matrix in the overseas market, and promoted the rapid development of overseas independent brands. The company continues to layout in Japan, North America, Europe and other markets, and is expected to continue to make breakthroughs in the future.
Profit forecast and investment suggestions. It is estimated that the EPS from 2021 to 2023 will be 9.69 yuan, 13.6 yuan and 18.39 yuan respectively. Considering the continuous improvement of projector penetration, the company will fully benefit as a leader and maintain the “buy” rating.
Risk tip: the price of raw materials may fluctuate sharply, and the expansion of new products is less than expected.
