\u3000\u3000 Beken Corporation(603068) (603068)
Event:
According to the company’s annual performance forecast for 2021, it is expected to realize a net profit of about 53.6267 million yuan to 64.3521 million yuan in 2021, with a year-on-year increase of 61.0% to 94.0%; It is estimated that the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses is about 41.9137 million yuan to 50.2964 million yuan, an increase of 99% to 139% year-on-year.
Comments:
Wi Fi business is growing rapidly, and the substantial growth of R & D expenditure leads to the growth of the company’s revenue ahead of profits
The performance growth in 2021 mainly comes from the R & D layout and market development of Wi Fi chip product revenue and gross profit growth. The company’s Wi Fi chip product sales revenue continues to grow, with an increase of more than 100%. At the same time, the company continued to promote the upgrading iteration of Wi Fi chip products with more advanced processes, and the gross profit margin and sales proportion of the new generation of Wi Fi chip products have increased. In terms of expenses, in order to maintain market competitiveness and develop new product lines, the number of R & D personnel of the company increased synchronously with the per capita salary, and the consumables for new product R & D mask also increased. The R & D investment of the company increased by nearly 100 million yuan over the same period of last year, an increase of more than 80%, affecting the net profit level of the company in 2021.
The Internet of things Wi Fi market is growing rapidly, focusing on the large amount of IOT business of head manufacturers such as graffiti and Midea
IOT market is growing rapidly. According to CIC’s prediction, global shipments of smart devices will increase to 3.81 billion in 2024, with a compound growth rate of 26.2% from 2019 to 2024. Relying on graffiti, Midea and other high-quality IOT customers, the company provides core wi fimcu chips, which will deeply benefit from the rapid development of IOT industry.
Profit forecast
Due to the short-term uncertainty of downstream TWS demand, the company’s wireless audio transmission products are less than expected, and the R & D expenditure is expected to grow higher, and the performance is under pressure in the short term. The net profit was RMB 63 million, RMB 139 million and RMB 211 million. We paid attention to the continuous recovery of performance month on month under the iteration of new products, gave the company 55 times PE for 22 years, corresponding to the target price of RMB 53.43, and maintained the rating of “overweight”.
Risk tips
The shortage of wafer foundry leads to the shipment falling short of expectations and the cost rising sharply; The introduction of TWS brand customers is less than expected; The demand of Wi Fi chip customers is lower than expected; The entry of new manufacturers led to a sharp decline in product prices
