\u3000\u3 Guocheng Mining Co.Ltd(000688) 533 Suzhou Sonavox Electronics Co.Ltd(688533) )
The company’s revenue in 2021 was 1.3 billion yuan, a year-on-year increase of + 19.8%
On February 25, Suzhou Sonavox Electronics Co.Ltd(688533) released the annual performance express of 2021, with a revenue of 1.3 billion yuan in 2021, a year-on-year increase of + 19.8%; In 2021, the net profit attributable to the parent company was 63 million yuan, a year-on-year increase of – 16.5%; Q4 single quarter revenue was 386 million yuan, a year-on-year increase of + 12.9% and a month on month increase of + 22.5%; In Q4, the net profit attributable to the parent company in a single quarter was 19 million yuan, with a year-on-year increase of – 45.7% and a month on month increase of + 35.7%. The revenue of the company’s loudspeaker business increased by 12% year-on-year. In addition, the new business is in a period of rapid volume. The revenue of vehicle power amplifier increased by 109% year-on-year and that of AVAs increased by 145% year-on-year. We raised the company’s profit forecast for 20222023. It is estimated that the company’s net profit attributable to the parent company in 20222023 will be 144 (+ 0.12) / 223 (+ 29) million yuan, EPS will be 0.9 (+ 0.07) / 1.39 (+ 0.18) yuan / share, corresponding to 49.4 / 32.0 times of the current share price PE. Considering the high growth brought by the large volume of new products, the company maintains the “buy” rating.
The increase in the price of raw materials + the increase in export sea freight, and the gross profit margin of the company’s main products decreased by 2.5pcts in 2021
On the profit side, the company’s profit was under pressure in 2021 due to the rise in the price of raw materials, the rise in export sea freight and other factors. One of the main components of the company’s loudspeaker is magnetic steel, and rare earth is an important raw material of magnetic steel. According to the data of China Rare Earth Industry Association, the rare earth price index was 431 on February 23, 2022, up 233.6% compared with April 2020, which has a great impact on the company’s profits. In addition, the company’s overseas sales account for a relatively high proportion, which has an adverse impact on the sharp rise of export sea freight. Under multiple adverse factors, the gross profit margin of the company’s main products decreased by 2.5pcts in 2021.
New business volume + profitability restoration, and the company’s performance growth can be expected
Rare earth materials usually have certain price fluctuations, and the company negotiated with customers to determine the price compensation mechanism. According to the company’s 2021 prospectus, taking Ford as an example, the company applies to Ford group for price compensation for the new costs borne by the rise of rare earth prices at the end of each half year, and recognizes the price compensation income after the compensation amount is confirmed by Ford group. With the rapid expansion of the company’s on-board power amplifier and AVAs products and the repair of profitability, the company’s net profit is expected to achieve high growth in 2022.
Risk tip: the demand for automobiles at home and abroad is less than expected, the promotion of fixed-point projects is less than expected, and the expansion of overseas markets is less than expected.
