\u3000\u3 China Vanke Co.Ltd(000002) 241 Goertek Inc(002241) )
Performance summary: in 2021, the company achieved an operating revenue of about 78.22 billion yuan, a year-on-year increase of 35.5%; The net profit attributable to the parent company was 4.27 billion yuan, a year-on-year increase of about 50%.
The annual performance was brilliant, and the intelligent hardware business achieved rapid growth. 2021: 1) revenue side: the high growth of the company’s intelligent hardware business led to a significant year-on-year increase in the overall operating revenue. In terms of business, the company’s intelligent acoustic machine business achieved a revenue of 30.3 billion yuan, a year-on-year increase of 13.6%; The revenue of intelligent hardware business was 32.8 billion yuan, with a year-on-year increase of 85.9%, mainly benefiting from the rapid growth of vr virtual reality products and game console shipments; The revenue of precision parts and components business was 13.84 billion yuan, a year-on-year increase of 13.4%. 2) Profit side: the net profit attributable to the parent company increased by 50% year-on-year; The gross profit margin of the company was 14.1%, a year-on-year decrease of 1.9pp; The net interest rate was 5.5%, a year-on-year increase of 0.6pp. 3) From the cost side, the three rates of the company have narrowed to a certain extent. Among them, the sales expense ratio was 0.6%, with a year-on-year decrease of 0.25pp; The rate of administrative expenses was 2.5%, a year-on-year decrease of 0.3pp; The R & D expense ratio was 5.3%, a year-on-year decrease of 0.6pp. The company gives the performance guidance of 2022q1, and it is estimated that the net profit attributable to the parent company in the first quarter is about 870970 million yuan, with a slight decrease year-on-year; The net profit deducted from non profits increased by about 240300 million yuan, with a year-on-year increase of about 40% – 50%.
The OEM of game consoles and VR machines has contributed important performance increments to the company. 1) OEM of game consoles: the ps5 OEM by the company will gradually increase in volume in 2021. The general life cycle of PS host is 6-7 years, of which the second to fourth years are the peak sales, so the corresponding 20222024 will be the peak sales of ps5. We believe that the shipment volume of ps5 will accelerate in 2022, and with the increase of the company’s OEM share, the game console OEM business will become a new important growth power of the company in the short term. 2) VR whole machine OEM: the company is the sole supplier of quest2, and the market heat of quest2 is expected to continue in 2022. According to steam data, as of January 2022, oculus users accounted for 67.3% of VR users on the platform; Among them, the proportion of quest2 ranked first, and the proportion continued to increase, reaching 46%. In addition, after Pico was acquired by byte, the sales volume soared and significantly revised the 22-year sales target. The new generation products of Pico, PSVR and questpro are also planned to be launched. Therefore, the company’s VR business is expected to continue to grow at a high speed in 2022 and contribute core increment to the company’s performance.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 5.88/79.0/9.72 billion yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of more than 30% in the next three years. Considering that the company is currently the core OEM in the field of VR head display, VR head display has ushered in the accelerated volume period, and the game console manufactured by the company has entered the peak sales, we maintain the “buy” rating for the company.
Risk tip: the shipment volume of VR business is lower than expected; The downstream demand of OEM game console does not meet expectations; Trade frictions escalated.
