\u3000\u3 Guocheng Mining Co.Ltd(000688) 608 Bestechnic (Shanghai) Co.Ltd(688608) )
Core conclusion
Event: Huawei, glory and oppo successively released new products in the spring of 2022. Hengxuan’s main chip scheme cuts into many categories such as headphones, speakers and smart home.
The company plans to cut into many new products and continuously expand the categories of key customers. (1) In terms of headphones, oppoenco x2 / Huawei free buses 4E / glory earbud 3pro and other new products adopt the company’s scheme, especially the bes2600 series scheme adopted by earbud 3pro, which is the first three in one chip integrating Bluetooth + ANC + in ear detection in the industry. (2) In terms of watches, Huawei watch GT3 / Xiaomi watch S1 / color 2 / vivo watch 2 released in 2021q4 is progressing smoothly by adopting the company’s generation scheme, and the company occupies a good competitive position in the watch market; The second generation solution is expected to be launched in the second half of 2022, integrating self-developed MCU, which is expected to improve the product ASP and break through more brand customers; The third generation scheme is under design in and is expected to be mass produced and listed in the second half of the year. (3) In terms of WiFi, the portable smart speaker sound joy launched by Huawei adopts the company’s bes2600 series second-generation smart home master chip, which can realize long-life of 16h (smart mode) and 26h (Bluetooth mode). The smart panel and AI sensor in Huawei smart home also use the company’s WiFi master chip. In the future, as more terminal forms are released one after another, module components suitable for more home appliance manufacturers will continue to be launched to cultivate a new growth curve.
Looking forward to 2022, the gross profit margin is expected to be low before and high after. In the first half of 2022, the company’s gross profit margin was under pressure due to the impact of capacity shortage and OEM price rise. The continuous introduction of new client products and the continuous adoption of the company’s solutions have supported the company’s performance in 2022. With the launch of 12NM process chips and a new generation of watch / WiFi chips in the second half of 2022, the company’s gross profit margin is expected to show a trend from low to high. In the long run, as an aiot platform supplier, the company will gradually expand from the field of smart headphones to other wearable and smart home markets, showing the momentum of sustainable growth.
Due to the repeated impact of the epidemic, our net investment is expected to remain at “h1.26 billion / 2027” and the net investment is expected to increase to “h1.25 billion / 20207”, which is expected to remain at “h1.25 billion / 20207”, and the net investment is expected to increase to “h1.25 billion / 20207”.
Risk warning: industry competition intensifies; R & D failure; Trade policy changes; Supplier / customer concentration risk
