On March 17, apple supply chain company Sunwoda Electronic Co.Ltd(300207) announced that it planned to invest about 8 billion yuan to build a 20gwh power battery and energy storage battery production base. At the same time, the performance forecast disclosed in Sunwoda Electronic Co.Ltd(300207) financial report shows that the annual net profit in 2021 is 802962 million yuan, with a year-on-year increase of 0-20%, which is lower than the market expectation.
Recently, the 2021 annual performance express or forecast of China’s fruit chain listed companies have been released one after another. Time finance found that most of them are undergoing diversified transformation. Like Sunwoda Electronic Co.Ltd(300207) the profit is less than expected, and it is not uncommon for enterprises to still invest heavily. The iron rice bowl of fruit chain is no longer fragrant?
The cinno research report shows that in January this year, the iPhone 13 won the single machine sales champion in the Chinese market for the fourth consecutive month with a sales volume of more than 2.3 million units. However, from the performance of 2021, the hot sales of iPhone 13 series failed to bring many suppliers.
The data show that the performance of fruit chain listed companies in the past year has been polarized. On the one hand, the net profits of BOE, Gigadevice Semiconductor (Beijing) Inc(603986) and other enterprises have doubled. On the other hand, many companies have suffered huge losses and hovered on the edge of survival.
performance is both hot and cold, and BOE’s profit exceeds 25 billion yuan
According to the list of supply chain enterprises announced by Apple Corp at the end of 2020, Chinese mainland has at least 27 fruit chain listed companies, 20 have announced 2021 annual performance bulletins or forecasts, 11 of them have realized profits and net profit has increased year by year, 4 have suffered losses.
The performance of BOE, Goertek Inc(002241) , Gigadevice Semiconductor (Beijing) Inc(603986) , Jcet Group Co.Ltd(600584) , etc. increased rapidly. In 2021, BOE’s operating revenue and net profit attributable to shareholders of listed companies were 219442 billion yuan and 25.826 billion yuan respectively, with a year-on-year increase of 61.89% and 412.86% respectively.
Compared with 2020, the net profit attributable to shareholders of Listed Companies in Gigadevice Semiconductor (Beijing) Inc(603986) , Jcet Group Co.Ltd(600584) 2021 increased by 165.33% and 126.8% respectively Goertek Inc(002241) is Apple’s contract airpods, which is expected to increase by 49% – 59% year-on-year.
Gigadevice Semiconductor (Beijing) Inc(603986) is the supplier of Apple’s airpods nor flash, and joined the fruit chain with seven listed companies in 2020. Among the other seven companies, Shenzhen Deren Electronic Co.Ltd(002055) , Xinlun New Materials Co.Ltd(002341) , Shenzhen Everwin Precision Technology Co.Ltd(300115) , Suzhou Victory Precision Manufacture Co.Ltd(002426) all achieved explosive results or plunged into the water.
In 2021, Shenzhen Deren Electronic Co.Ltd(002055) , Xinlun New Materials Co.Ltd(002341) it is estimated that the net losses attributable to the shareholders of the listed company will be between RMB 480 million and RMB 680 million and RMB 900 million and RMB 1.1 billion respectively Suzhou Victory Precision Manufacture Co.Ltd(002426) although there is no loss, this data is expected to decrease by 85.79% – 89.67% over the previous year.
Shenzhen Deren Electronic Co.Ltd(002055) , Shenzhen Everwin Precision Technology Co.Ltd(300115) are all from profit to loss. In 2020, Shenzhen Everwin Precision Technology Co.Ltd(300115) profit exceeded 600 million yuan, and the net loss attributable to shareholders of Listed Companies in 2021 was 579 million yuan.
Shenzhen Everwin Precision Technology Co.Ltd(300115) said in the announcement that the important reason for the decline in performance was the further increase in the R & D investment of strategic products of main customers and the increase in the layout and R & D investment of new energy components, with a year-on-year increase of about 300 million yuan.
Ofilm Group Co.Ltd(002456) is also one of the four fruit chain listed companies with losses, and the amount of losses is the highest. In 2021, its net loss attributable to shareholders of listed companies is expected to be as high as 1.9-2.7 billion yuan.
iphone13 sold well, but the fruit chain didn’t eat the cake
Market news shows that BOE, Sunwoda Electronic Co.Ltd(300207) , Luxshare Precision Industry Co.Ltd(002475) , Foxconn Industrial Internet Co.Ltd(601138) ( Foxconn Industrial Internet Co.Ltd(601138) ) are all suppliers of iPhone 13 series. The first two supply display screens and batteries respectively, and Luxshare Precision Industry Co.Ltd(002475) and Foxconn Industrial Internet Co.Ltd(601138) do OEM business.
In 2021, the net profit of Sunwoda Electronic Co.Ltd(300207) attributable to shareholders of listed companies is expected to increase by 0% – 20% year-on-year, which may be zero growth Foxconn Industrial Internet Co.Ltd(601138) ‘s revenue increased by only 1.8% year-on-year, while Luxshare Precision Industry Co.Ltd(002475) increased revenue without increasing profit. The revenue increased by 66.6% year-on-year, but the net profit attributable to shareholders of listed companies decreased by 2.12% year-on-year.
Liu Yuan, chief analyst of ictime, said in an interview with times finance that in 2021, due to the lack of core and materials, apple considered the cost and pressed the price of some suppliers with strong substitutability, while suppliers with technological advantages made a lot of money.
In the first half of 2021, the gross profit margin of Foxconn Industrial Internet Co.Ltd(601138) communication and mobile network equipment business was only 9.93%, and that of Luxshare Precision Industry Co.Ltd(002475) consumer electronics industry was 15.78%. In contrast, BOE shows that its gross profit margin is as high as 30.49%.
BOE’s semiconductor display industry has a high threshold and few suppliers. According to the cinno Research Report, in 2021, Boe Technology Group Co.Ltd(000725) moled smart phone panel shipments were about 60 million pieces, with a year-on-year increase of 67.2%, ranking second in the world, second only to Samsung.
relying on apple is risky, and two companies are kicked out of the fruit chain
The survival rules of iPhone 13 series suppliers apply to the whole fruit chain. Ming Shuliang, founder of Zhiwu technology, told times finance that China’s labor costs are increasing, and the challenges of low-end assembly manufacturing will be greater and greater. The competitiveness of traditional products such as MIM and mobile phone middle frame mostly depends on the manufacturer’s price strategy, and there is little difference between them.
“The reality of homogeneous competition and involution between fruit chains is grim. Some links have almost no profits, and will face obvious challenges in the future.” He said.
Therefore, although the Gigadevice Semiconductor (Beijing) Inc(603986) net profit of supplying nor flash for Apple doubled, Xinlun New Materials Co.Ltd(002341) , Lens Technology Co.Ltd(300433) , Suzhou Anjie Technology Co.Ltd(002635) and other performance was poor. In 2021, the net profit of Lens Technology Co.Ltd(300433) attributable to the shareholders of the listed company, which supplied glass cover for apple, decreased by 57.36% year-on-year.
Lens Technology Co.Ltd(300433) explained in the performance express that in 2021, the comprehensive factors such as the rise of human costs, the increase of R & D projects, the operation of new parks, supply chain fluctuations, epidemic situation and power restriction had a certain impact on the company’s operating performance.
In order to reduce the dependence on apple, fruit chain enterprises including Lens Technology Co.Ltd(300433) have started diversified transformation. Some have arranged AR and VR businesses, some focus on the Chinese market, and at least eight fruit chain companies have invested in the new energy vehicle industry, including Luxshare Precision Industry Co.Ltd(002475) , Foxconn Industrial Internet Co.Ltd(601138) , Shenzhen Everwin Precision Technology Co.Ltd(300115) , Lens Technology Co.Ltd(300433) , etc.
Times finance learned that Luxshare Precision Industry Co.Ltd(002475) plans to set up a company with Chery to engage in the R & D and manufacturing of new energy vehicles, Lens Technology Co.Ltd(300433) plans to develop on-board glass and large-size functional panels, Lingyi Itech (Guangdong) Company(002600) plans to lay out the power batteries of new energy vehicles.
Apple’s own car building plan has encountered setbacks. Recently, Guo Mingxuan, an analyst at Tianfeng international securities, disclosed that the apple car team has been dissolved for some time. If we want to achieve the mass production target in 2025, we must restructure the team within the next three to six months.
This will also add uncertainty to the transformation of fruit chain enterprises. Experience in the field of consumer electronics has proved that over reliance on Apple limits the bargaining power of fruit chain enterprises, and the risk of being removed from the list is even more obvious.
In 2021, Jinlong Machinery & Electronic Co.Ltd(300032) the net profit attributable to the shareholders of the listed company is expected to be 2-3 million yuan. After deducting non recurring profits and losses, it will have a net loss of 41-113 million yuan. It failed to enter the motor supply chain of Apple’s new products in 2017 and ended the supply of old products last year.
Jinlong Machinery & Electronic Co.Ltd(300032) in the 2021 performance forecast, the company’s linear motor products are mainly for an international major customer. Due to the long-term lack of attention to China’s mobile phone motor business, China’s mobile phone motor sales system, product R & D capacity and production automation level are lacking, and the current competitors have taken the lead in the Chinese market.
