\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Event:
On February 24, 2022, Chengdu Xgimi Technology Co.Ltd(688696) released the annual performance express of 2021. In 2021, the company realized an operating revenue of 4.046 billion yuan (+ 43.06%); The net profit attributable to the parent company was 489 million yuan (+ 81.79%).
Key investment points:
The revenue of 2021q4 increased rapidly and the profit side performed brilliantly. In 2021q4, the company achieved a revenue of 1.402 billion yuan (+ 45.80%) and a net profit attributable to the parent company of 189 million yuan (+ 94.52%). (1) Revenue side: the sales volume of the company's products keeps growing, and the change of product structure leads to the upward movement of the price center, which promotes the high growth of revenue. During the "double 11" period, the company's total net sales exceeded 800 million yuan, with a year-on-year increase of 90% +, of which the high-end flagship products h3s and rspro2 contributed gmv2.0% respectively 500 + million yuan, 80 + million yuan; During the double 12 period, the total sales volume of the whole network exceeded 100 million, with a year-on-year increase of 160% +. (2) Profit side: the average price of the product moves up and the continuous introduction of self-developed polishing machine drives the gross profit margin to rise, and the profitability is further enhanced. The self polishing probability of the company remains at 90%, and the medium and high-end intelligent projection has been fully introduced into the self polishing machine.
The company has a solid leading position in the domestic market and actively expand the overseas market. 1) Domestic sales: in 2021, the company successively launched the high-end series rspro2 and the new cost-effective newz6x intelligent projection products, which cooperate with the marketing end by means of official publicity spokesmen and so on. According to Lotu technology data, in 2021, the market share of the company on DLP projection line exceeded 40%, and the leading position in the industry was stable. In February 2022, it also launched the laser TV polar meter A3 with benchmarking OLED, and set sail again in the field of laser TV. 2) Overseas: in 2021, the company launched three new intelligent projection products and one laser TV product to enrich the overseas product matrix and provide impetus for the growth of the company's overseas performance.
As a leader in the intelligent projection industry, the company's performance is beautiful and has been raised to the "buy" rating. The company has rich product matrix, strong growth momentum and high prosperity in the intelligent projection industry. With the improvement of the penetration rate of intelligent projection, as a leading company in the industry, it is expected to continue to benefit and be upgraded to the "buy" rating. We predict that the net profit attributable to the parent company from 2021 to 2023 will be RMB 488 / 688 / 939 million, corresponding to EPS of RMB 13.03 / 18.34 / 25.04, and the current share price corresponding to PE of 35.8 / 25.4 / 18.6 times.
Risk tips: shortage of chip supply, repeated covid-19 epidemic, intensified industry competition, uncertainty of the company's overseas business expansion, industry technology development less than expected, etc.
