\u3000\u3 Guocheng Mining Co.Ltd(000688) 533 Suzhou Sonavox Electronics Co.Ltd(688533) )
Event: the company released the 2021 annual performance express.
The performance was slightly lower than expected. The company disclosed that the annual operating revenue in 2021 was 1.303 billion yuan, a year-on-year increase of 19.8%; The net profit attributable to the parent company was 63 million yuan, a year-on-year decrease of 16.5%; The net profit deducted from non parent company was 53 million yuan, a year-on-year decrease of 16.5%. In the fourth quarter of 2021, the operating revenue was 386 million yuan, an increase of 12.9% year-on-year and 22.7% month on month; The net profit attributable to the parent company was 19 million yuan, a year-on-year decrease of 46.7% and a month on month increase of 37.4%; Net profit deducted from non parent company was 16 million yuan, a year-on-year decrease of 47.7% and a month on month increase of 18.7%. In 2021, the company’s business revenue increased steadily. Due to the rise in the price of upstream raw materials, the rise in sea freight, the increase in R & D investment and other factors, the profit end of the company in 2021 and the fourth quarter was under pressure.
The company has a competitive advantage in the field of vehicle speakers, expanding categories and increasing the value of single vehicles. The company’s traditional advantageous business is car speaker products. With strong independent R & D capability, synchronous development capability and product technical strength, the company has become one of the leading car speaker suppliers in China. According to the company’s announcement, in 2021, the company’s on-board speakers accounted for 12.64% of the global passenger car and light commercial vehicle market, about 19% of China, and ranked first in China. With the upgrading of consumption and the development of automotive intelligence, automotive acoustic products are no longer limited to on-board speakers. The company takes advantage of this east wind to actively layout incremental products such as on-board power amplifier and AVAs, and the supporting value of single vehicle continues to increase. Benefiting from the rapid development of new energy vehicle market and the company’s own competitive advantages, in 2021, the company’s loudspeaker business revenue increased by 12%, power amplifier business revenue increased by 109% and AVAs business revenue increased by 145% year-on-year.
The company has abundant customer resources and opens up growth space for new energy customers. Relying on its advantages in R & D and innovation capability, synchronous development capability and global delivery capability, the company has established cooperative relations with foreign and joint venture brands such as Volkswagen, GM, Ford, SAIC Volkswagen and SAIC GM, as well as Chinese independent auto enterprises such as great wall, Geely, Chery and Dongfeng Automobile Co.Ltd(600006) and successfully developed GM Group, SAIC GM Saic Motor Corporation Limited(600104) and other existing customers’ AVAs business. Following the tide of new energy, the company focuses on expanding new energy customers and has entered the supporting systems of new energy vehicle enterprises such as Byd Company Limited(002594) , Tesla, Weilai, ideal, Weima and Huawei Jinkang. Among them, Weilai, ideal, Huawei Jinkang and other customers, the company provides complete vehicle sound systems, including speakers, on-board power amplifiers and AVAs, and the value of single vehicle is much higher than that of a single acoustic product.
Profit forecast and investment suggestions
Slightly adjust the income, increase R & D investment and adjust the expense rate. It is predicted that the company’s EPS from 2021 to 2023 will be 0.40, 0.99 and 1.45 yuan respectively (the original 0.48, 1.03 and 1.46 yuan). The shortage of chip supply will affect the profit. According to the 22-year PE valuation, the comparable company is an automotive electronics related company, with a 22-year PE of 54 times and a corresponding target price of 53.46 yuan, maintaining the buy rating.
Risk tips
The supporting volume of vehicle speaker business is lower than expected, the vehicle power amplifier business and AVAs business are lower than expected, the market space of acoustic industry and the supply of automobile chips.
