\u3000\u3000 Chengdu Xgimi Technology Co.Ltd(688696) (688696)
Event: Chengdu Xgimi Technology Co.Ltd(688696) announced the 2021 performance express. In 2021, the company realized revenue of 4.05 billion yuan, yoy + 43.1%; Achieved performance of 490 million yuan, yoy + 81.8%. After conversion, the company realized revenue of 1.4 billion yuan in 2021q4 single quarter, yoy + 45.8%; Achieved performance of 190 million yuan, yoy + 93.8%. The revenue and performance of Jimi Q4 increased rapidly in a single quarter, and the performance exceeded the expectations of the capital market.
Q4 single quarter revenue growth was higher than Q3: in 2021q4, the revenue growth of Jimi was higher than Q3 + 13.4pct, and the demand for household projectors outside China was better. According to the company’s double 11 and double 12 war reports, the Gmv of the whole network of Jimi double 11 (11.1 ~ 11.11) exceeds 800 million yuan, yoy + 90% +; The Gmv of the whole network broke 100 million on the 12th day of the Double Ninth Festival, yoy + 160% +. We believe that the rapid growth of domestic sales of Jimi is mainly due to: 1) strong demand in the household projector industry; 2) Q3 increased the brand launch, invited Yiyang Qianxi to become a brand spokesperson, and promoted the online traffic of polar meters in the Q4 sales season. In terms of export, Jimi’s popularity abroad has increased rapidly. According to Google Trends, the search popularity of Jimi 2021q4 in the world has increased by about 70% year-on-year.
Q4 single quarter profitability improved month on month: the net interest rate of Jimi in 2021q4 was 13.4%, Q3 + 2.2pct month on month, 2020q4 + 3.3pct year on year, and the profitability reached the highest level in a single quarter. We believe that the main reasons are as follows: 1) the company’s product structure continues to improve. According to Lotu data, the average price of Jimi projector 2021q4 in a single quarter is yoy + 19%, and the chain is 13.0% higher than Q3; 2) In the context of chip supply shortage and weakening market competition, the company can adopt a more conservative price strategy; 3) Q4 Jimi’s revenue grew rapidly, diluting fixed expenses.
Chip supply suppresses short-term growth, and there is a large growth space for the medium and long-term household projector industry. Looking forward to 2022, limited by the tight supply of chips, there is a certain pressure on the growth of household projector market. However, from the performance of 2021q4, Jimi still achieved rapid growth in domestic sales without large-scale price reduction and promotion, reflecting the strong demand of consumers for household projector products. In the medium and long term, we believe that the domestic projector industry has a large growth space in China’s foreign markets. With the gradual easing of the chip supply problem, the company’s revenue is expected to release greater flexibility.
Investment suggestion: Jimi is the leader in China’s projector industry. The company’s products and channels are continuously optimized and its profitability is improved. The company has made greater efforts to expand overseas markets and is expected to achieve rapid growth in the dividend period of the industry. We expect EPS to be 12.63/19.25 yuan from Chengdu Xgimi Technology Co.Ltd(688696) 2022 to 23, maintaining the investment rating of buy-a.
Risk warning: technology R & D risk, increased market competition risk, and dependence on outsourcing of core parts
