\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Event: Chengdu Xgimi Technology Co.Ltd(688696) released the 2021 annual performance express. In 2021, the company is expected to realize an operating revenue of 4.046 billion yuan, a year-on-year increase of + 43.06%; The net profit attributable to the parent company was 489 million yuan, a year-on-year increase of + 81.79%. After conversion, the company's Q4 is expected to achieve an operating revenue of 1.402 billion yuan, a year-on-year increase of + 45.80%, and a net profit attributable to the parent company of 188 million yuan, a year-on-year increase of + 93.79%.
Q4 revenue growth exceeded market expectations. Q4's revenue and performance growth increased significantly compared with 32.43% and 44.76% of Q3, with a month on month increase of + 13.37pct and + 49.03pct. The results were quite bright, exceeding market expectations. We believe that the main reasons for the rapid growth of Jimi Q4 are: 1) the prosperity of the industry is high, and the overall market demand is strong: the sales growth rate of Taobao platform in Q4 projector industry is + 76%, and the growth rate of JD platform is + 127%. As the industry leader, the company has a stable market position, accounting for about 22 ~ 24% of the market share, and takes the lead in sharing the market expansion bonus; 2) strengthen brand building and marketing input: signing the top artists to Yiyang Qianxi, as the global brand spokesperson and landing the head anchor Li Jiaqi live broadcast room, greatly enhance brand influence, promote online sales growth, double 11 GMV of the whole network exceeds 800 million yuan, +90% over the same period, and Q4 Jingdong sales amount is +140%. In January 22, the sales growth rate of Jimi Taobao and jd.com was + 14.5% and + 55.4% respectively, which was in line with the growth rate of the industry. We believe that at present, the overall penetration of intelligent projection is still in the stage of rapid improvement. The company holds multiple first mover advantages such as products, R & D, channels and brands, and will continue to maintain rapid growth in revenue and performance in the future.
The product structure and channel layout have been continuously optimized, and the profitability has been continuously improved. After conversion, the company's Q4 net profit margin reached a peak of 13.44%, with a year-on-year increase of 3.33pct in Q4 in 20 years and 2.21pct in Q3 in 21 years, thanks to 1) changes in the company's pricing strategy and product structure: the average price of projectors on Jimi JD platform increased by about 15% year-on-year in November, and the annual sales performance of high-end new products h3s and rspro2 was good; And 2) the company's self-developed polishing machine continued to drive the increase of gross profit margin and further made a breakthrough in the company's profitability. Channel, 21 years in the company's sales tiktok and other social platform quickly increased, overseas fame increased simultaneously, opened a new growth point for company revenue.
Launch a new 4K laser TV product to display the track with power laser. On February 17, Jimi released a new 4K laser TV product, priced at 19999 yuan. Using three-color laser technology, it can present 350 nit bright 100 inch pictures, and the color performance is directly benchmarked with OLED TV. The laser TV market is in the stage of rapid expansion, with a compound growth rate of more than 150% in recent five years, but the overall volume is still small. Previously, Jimi has not updated its laser TV products for nearly three years. The launch of this new product may indicate that Jimi will actively promote the laser TV track and seek the development of the second curve.
Profit forecast and investment rating: we believe that short-term influencing factors such as chip shortage, rising raw material costs and shipping pressure will be gradually improved. We are optimistic about the continuous improvement of industry penetration and the strong alpha advantages of Jimi as an industry leader. We estimate that the revenue in the 21st-23rd year will be 4.046/57.55/7.942 billion yuan, with a year-on-year growth rate of 43.1/42.3/38.0%; The net profit attributable to the parent company was 489 / 716 / 1024 million yuan, with a year-on-year growth rate of 81.8 / 46.6 / 43.0%; Corresponding to pe47 74 / 32.57/22.78 times, maintaining the "buy" rating.
Risk factors: the price of raw materials continues to rise, the competition in the intelligent projection industry intensifies, the shortage of chips intensifies, the company's new product launch is less than expected, and the company's channel development is less than expected.
