\u3000\u3 Guocheng Mining Co.Ltd(000688) 533 Suzhou Sonavox Electronics Co.Ltd(688533) )
Event overview: on February 26, 2022, the company released the annual performance express of 2021: the company’s revenue in 2021 was 1.303 billion yuan, a year-on-year increase of 19.76%; The net profit attributable to the parent company was 63 million yuan, a year-on-year decrease of 16.45%; The net profit deducted from non parent company was 53 million yuan, a year-on-year decrease of 16.48%. Among them, the revenue in the fourth quarter of 2021 was 386 million yuan, a year-on-year increase of 12.87% and a month on month increase of 22.93%; The net profit attributable to the parent company was 19 million yuan, a year-on-year decrease of 47.22% and a month on month increase of 37.48%.
The traditional business is growing steadily, and the new business is in large volume. It will end perfectly in 2021
The company is an independent leading enterprise of vehicle speakers. The global market share of vehicle speakers has been maintained at about 12% for many consecutive years. The revenue of vehicle speakers accounts for 90% of the total revenue in 2021h1. Benefiting from the cyclical recovery of the automotive industry, the annual revenue increased by 12% year-on-year. The new business has entered the rapid volume stage. In 2021, the company’s power amplifier business revenue increased by 109% year-on-year, and the AVAs business revenue increased by 145% year-on-year. Traditional business and new business jointly helped the company achieve an annual revenue of 1.303 billion yuan, a year-on-year increase of 19.8%.
Cost factors such as raw materials and shipping lead to short-term pressure on the company’s gross profit margin, which is expected to continue to improve in the future
In 2021, due to the influence of multiple factors, the gross profit margin was under pressure, and the net profit attributable to the parent decreased by 16.45% year-on-year: 1) affected by the rise in the prices of upstream raw materials such as rare earth, bulk metal commodities and plastic particles, the price of the company’s main raw materials increased greatly, and the gross profit margin was under pressure; 2) Affected by the repeated international epidemic, the export sea freight has increased. In 2021, the gross profit margin of the company’s main products was reduced by 2.5pcts, and the net profit attributable to the parent decreased by 16.45% year-on-year. The performance was under short-term pressure. With the gradual control of the epidemic and the gradual normalization of the price of upstream raw materials, the company’s gross profit margin is expected to improve.
Acoustic products are distributed in the whole industrial chain, and the volume and price of new products rise together, opening up the growth space of the company
Benefiting from the improvement of users’ requirements for sound quality and the requirements of new energy related regulations, the penetration rate of on-board power amplifier and AVAs products is expected to increase rapidly. The company continued to strengthen R & D and innovation, expand the R & D team, and actively layout vehicle power amplifier, AVAs and other products based on vehicle speakers. In 2021, the R & D investment increased by 44% year-on-year. The single vehicle value of products such as on-board power amplifier and AVAs is more than 500 yuan, which is more than twice that of on-board loudspeaker. At the same time, based on the existing customer structure, the company continues to promote the rapid penetration of new products. At present, it has entered the supporting system of new energy vehicle enterprises such as Weilai, Zero run, ideal and Huawei Jinkang, and the new products are expected to usher in a large-scale period. With the increase of incremental business volume and price in the future, it is expected to significantly open the growth space of the company.
Investment suggestion: it is estimated that the company’s revenue from 2021 to 2023 will be 1.33/18.97/2.868 billion yuan, and the net profit attributable to the parent company will increase from 73 / 132 / 233 million yuan. The current market value corresponds to 102 / 57 / 32 times of PE from 2021 to 2023. Benefiting from the penetration and acceleration of automotive electric intelligence, product upgrading helps the company realize the simultaneous rise of volume and price. As a leading company of automotive acoustic products, it is expected to enjoy a valuation premium and maintain the “recommended” rating.
Risk tip: the price fluctuation of raw materials leads to low gross profit margin, less than expected expansion of new products, exchange rate risk, etc.
