\u3000\u3000 Chengdu Xgimi Technology Co.Ltd(688696) (688696)
Event:
On January 26, 2022, Chengdu Xgimi Technology Co.Ltd(688696) released the annual performance forecast. According to preliminary calculation, the net profit attributable to the parent company in 2021 was 484 million yuan, an increase of 215 million yuan year-on-year, yoy + 80.07%; The non net profit attributable to the parent company was 430 million yuan, a year-on-year increase of 182 million yuan, yoy + 73.62%.
Comments:
Revenue side: Micro investment is in the early stage of its life cycle, and the overseas market is still a blue ocean, with huge industry space. 1) According to our calculation, the number of 100 households of micro investment in China in 2020 is low, only 2 units / 100 households. The performance upgrade can improve the product penetration. In the first 11 months of 2021, the sales volume of intelligent projection in China increased by 30% year-on-year (Lotu Technology). As the leader of intelligent micro investment, Jimi will strengthen user education by means of spokesperson promotion and offline store expansion in 2021, occupying the consumer’s mind in advance, and the projection market share of Jimi will reach 20%. 2) From the perspective of overseas market, Jimi began to go to sea in 2016, and the overseas revenue of 20 / 21h1 was + 331% and 137% year-on-year. At present, the company has started multi-dimensional layout of the overseas market, and launched four new products in 2021 to enrich the overseas product matrix; And strengthen overseas user education through cooperation with KOL and offline distributors and advertising; At present, the company has opened up Japan Wuxi Online Offline Communication Information Technology Co.Ltd(300959) and Europe and the United States, and will speed up the offline layout after the epidemic is alleviated.
Profit side: the results of product structure optimization continued to be realized, the proportion of self-developed polishing machines increased, and the cost was further reduced. In March and April this year, the company launched the medium and high-end micro investment h3s priced at 5699 yuan and the high-end micro investment rspro2 priced at 8699 yuan, which were continuously recognized by consumers. According to Taobao data, the sales of the above two new products accounted for 18% and 35% of the sales and sales of the whole store in 2021, which means that the high-end process of the company’s products is smooth. At the same time, the continuous introduction of self-developed optical machines drives the increase of gross profit margin. According to the calculation, each self-developed optical machine can reduce the whole machine cost by 3-5%. The self-developed proportion of optical machines of the company will reach 70% by the end of 2020. After the listing and fund-raising in March 2021, the self-developed proportion will further increase, accounting for 90% in 2021q1, so as to further optimize the cost structure.
Investment suggestion: the performance in 2021 slightly exceeded the expectation, raising the company’s EPS from 2021 to 2023 to 9.69, 14.09 and 18.71 yuan / share, corresponding to 49, 34 and 26 times of PE. Jimi made efforts to develop domestic and foreign markets in multiple dimensions. Its performance in 2021 exceeded expectations and was raised to the “buy” rating.
Risk tips: the overseas expansion is not as expected, the economic downside risk caused by the repeated epidemic, and the risk of insufficient supply of upstream raw materials.
