\u3000\u3 China Vanke Co.Ltd(000002) 241 Goertek Inc(002241) )
Event:
The company released the performance report of 2022.1 billion yuan in the same quarter and achieved a revenue increase of 782.2 billion yuan in 2021; The net profit attributable to the parent company was 4.275 billion yuan, an increase of 50.09%. In 2022q1, the net profit attributable to the parent company is expected to increase by 0% – 10% to 869966 million; It is estimated that the net profit attributable to the parent company after deducting non profits will increase by 40% – 50% to 842 million-902 million yuan.
Comments:
In the past 21 years, the performance has increased rapidly, and the intelligent hardware business has performed brilliantly. In 2021, the company achieved a revenue of 78.221 billion yuan, an increase of 35.47% at the same time; The net profit attributable to the parent company was 4.275 billion yuan, an increase of 50.09%. Among them, Q4 achieved revenue of 25.432 billion yuan in a single quarter, an increase of 10.52% at the same time; The net profit attributable to the parent company was 942 million yuan, an increase of 13.29% at the same time. During the reporting period, the company actively promoted the development of precision parts and components such as acoustics, optics, microelectronics and structural parts and smart hardware products such as VR / AR, smart wireless headset, smart wearable and smart home. In 2021, the company’s revenue of smart hardware / smart acoustic machine / precision parts and components was 32.809/30.297/13.840 billion yuan, an increase of 85.87% / 13.58% / 13.39% respectively, including vr virtual reality The business in the field of intelligent home electronic game console has achieved rapid growth.
2022q1vr, intelligent game console and other products continue to promote the high growth of non deduction performance. Benefiting from the growth of sales revenue and profitability of the company’s vr virtual reality, intelligent game consoles and other products, the company expects the net profit attributable to the parent company to increase by 0% – 10% to 869 ~ 966 million yuan in 2022q1, of which the non recurring income is expected to be 25-65 million yuan and 365 million yuan in 21q1, i.e. a year-on-year decrease of Jiangmen Kanhoo Industry Co.Ltd(300340) million yuan, mainly due to the changes in the fair value of kopin Corporation’s equity investment and other factors. It is estimated that the net profit attributable to the parent company after deducting non profits will increase by 40% – 50% to 842 million-902 million yuan.
R & D continued to increase, cost control was stable, and cash flow improved significantly. The company’s R & D continued to increase. In 2021, the company’s R & D expenses increased by 21.72% year-on-year to 4.17 billion yuan, and the R & D expense rate increased to 5.33%. In 2021, the company applied for 3468 patents, including 2539 invention patents and 2675 patent authorizations, including 1036 invention patents. At present, the company has established a product R & D and manufacturing platform integrating materials, electronic circuits, software algorithms, advanced processes and other technologies, and has carried out long-term cooperation with Tsinghua University and other universities and scientific research institutions. In 2021, the R & D personnel accounted for 13.46% to 13000, creating R & D advantages. In terms of cost control, the company’s sales / management / financial expense ratio in 2021 was 0.57% / 2.50% / 0.21% respectively, with a total of 3.28%, which was the same as that in the same period, and the cost control was stable. Among them, the financial expense decreased by 65.95% year-on-year, which was mainly due to the decrease of exchange loss, the decrease of interest expense on convertible bond to equity swap and the increase of interest income from stock monetary funds. In addition, the company’s cash flow from operating activities was 8.598 billion yuan, an increase of 11.93%, mainly due to the expansion of the company’s business scale and the improvement of its business cycle.
Intelligent hardware business: 5g + artificial intelligence + intelligent interactive technology + sensor technology + advanced software algorithm and other multi technology integration have created a large number of new application scenarios and product requirements. Emerging intelligent hardware products represented by VR / AR and smart home have grown rapidly in recent years, and the company’s intelligent hardware business has achieved a rapid growth of 85.87% in 2021. In 2021, the global shipment of vr virtual reality products was about 9.36 million units, with a year-on-year increase of about 68.6%, and the global shipment of ar Augmented reality products was about 330000 units, with a year-on-year increase of about 13.8%. According to IDC, the global volume of VR head display will reach 15.73 million units in 2022, with a year-on-year increase of 43.6%. Goer’s VR / AR assembly business has a market share of more than 50% in the terminal market, and the market share of medium and high-end VR / AR has reached 80%, occupying a leading position in the industry. The company’s VR OEM business is bound with high-quality major customers. Customers cover the world’s mainstream VR head display brands and achieve in-depth cooperation in the growth period, including Facebook, Sony, HTC and Pico. Facebook quest2 is OEM exclusively. The volume of medium and high-end VR head display accounts for more than half of the world’s total. In the future, with the further increase of VR / AR global demand, the company’s intelligent hardware business is expected to continue to grow.
Intelligent acoustic complete machine business: with the increasingly mature intelligent voice interaction function, the market penetration of smart headphones and wearable devices represented by smart watches continues to increase. According to the statistical data of futuresource, the global shipment of smart headphones in 2021 was about 300 million, with a year-on-year increase of about 37%; According to the prediction of prospective industry research institute, the global shipment of smart headphones will reach 1 billion units in 2025, and the CAGR from 2021 to 2025 will reach 35%. Goethe intelligent acoustic machine business focuses on core technologies such as acoustics, voice interaction and artificial intelligence, and focuses on the research and development of TWS intelligent wireless headphones, wired / wireless headphones, intelligent speakers and other products. In the field of TWS, the company won about 50% of the OEM share of North American customers in 2021. At the same time, the company is also the largest OEM of Android high-end TWS headphones. Customers include Huawei, OV, Xiaomi, etc.
Precision parts and components business: the company plans to spin off goer micro to be listed on the gem to further increase the investment in cutting-edge MEMS technology. In December 2021, the company announced that its spin off subsidiary goer Microelectronics Co., Ltd. was accepted by Shenzhen stock exchange for listing on GEM. In 2020, yoyle Corp. was the first manufacturer of MEMS and MEMS products in the world, ranking the sixth in the global market share in MEMS and MEMS products, according to the statistics of yoyle Corp. The spin off and listing will enhance the financing capacity of precision parts and components business and facilitate further R & D investment.
Profit forecast, valuation and rating: Goertek Inc(002241) will adhere to the development strategy of “parts + finished products” in the future. Under the background of improving the self-sufficiency rate of domestic semiconductor components, the stable growth of TWS downstream market and the rapid increase of VraR shipments will promote the rapid development of the company’s intelligent acoustic machine and intelligent hardware business and drive Goethe into a rapid growth channel. We maintain the net profit forecast for 20222023, which is 5.764 billion yuan / 7.494 billion yuan respectively, and the net profit for the new 24 years is expected to be 9.368 billion yuan. The corresponding PE is 20x / 16x / 12x respectively, maintaining the “buy” rating.
Risk tip: the risk that the development process of wearable device market is slow or less than expected; Risks caused by the slow progress of 5g construction or policy changes; Affected by the global macroeconomic downturn.
