\u3000\u3 China Vanke Co.Ltd(000002) 241 Goertek Inc(002241) )
[key points of investment]
According to the disclosure of the annual report, the parent company achieved a year-on-year growth of RMB 787.1 billion, with a year-on-year growth of net profit of RMB 3.52 billion in 2021 and a year-on-year growth of RMB 3.52 billion in 2021, which was in line with the annual report. Corresponding to 2021q4 single quarter revenue of 25.432 billion yuan, a year-on-year increase of 10.52%, Q4 single quarter net profit attributable to the parent company of 942 million yuan, a year-on-year increase of 13.22%. During the reporting period, the company’s main businesses maintained a good growth momentum. In 2021, the revenue of the company’s intelligent hardware business increased by 85.87% year-on-year to 32.809 billion yuan, the revenue of intelligent acoustic complete machine increased by 13.58% year-on-year to 30.297 billion yuan, and the revenue of precision parts and components business increased by 13.39% year-on-year to 13.84 billion yuan. In terms of profitability, the gross profit margin of the main business in 2021 was 14.16%, a year-on-year decrease of 1.92 PCT, of which the gross profit margin of intelligent hardware business maintained a positive growth, with a year-on-year increase of 1.40% to 13.91%. In terms of R & D investment, the company invested 4.170 billion yuan in R & D in 2021, a year-on-year increase of 21.72%.
The company disclosed the performance forecast of 2022q1, and it is expected that the net profit attributable to the parent in the single quarter of 2022q1 will decrease by 0-10% year-on-year to RMB 859966 million. The net profit attributable to the parent is expected to increase by 40-50% year-on-year to RMB 842902 million. The year-on-year increase of non net profit deduction was mainly due to the increase of sales revenue of vr virtual reality, intelligent game console and other products of 2022q1 company and the improvement of profitability. At the same time, affected by factors such as the change of fair value of kopin Corporation’s equity investment, the company’s non recurring profit and loss decreased by Jiangmen Kanhoo Industry Co.Ltd(300340) million yuan year-on-year.
The market scale of intelligent wearable products is growing steadily, and VR / AR drives long-term growth. According to futuresource data, the global shipment of smart headphones increased by 37% year-on-year to about 300 million units in 2021. According to the statistics of CCS insight, the total shipments of smart wearable products represented by smart watches and smart bracelets in the world in 2021 were about 232 million, with a year-on-year increase of 20.2%. In addition, under the opportunity of continuous upgrading of VR / AR product hardware and increasingly perfect software ecology, statista expects that the global shipment of VR / AR equipment will exceed 10 million in 2022, reaching 14.19 million units, with a year-on-year increase of 43.91%, and the shipment is expected to reach 18.81 million units in 2023.
While the growth of the global smart phone industry has slowed significantly, emerging smart hardware products represented by VR / AR, smart acoustics and smart wear have achieved rapid growth, driving the demand growth of related upstream precision optical devices and modules, precision acoustic components, MEMS sensors and micro system modules, tactile devices, precision structural parts and other products. The company has innovative competitive advantages in the fields of acoustics, optics, microelectronics and precision manufacturing, closely follows the pace of strategic innovation of world-class customers, and transforms the needs of high-quality customers into an inexhaustible driving force for the sustainable and rapid development of the company.
[investment suggestions]
The company deeply cultivates the core competitiveness of acoustics, optics, microelectronics and precision manufacturing, and has rich independent intellectual property rights in the field of precision parts and components to provide customers with vertically integrated product solutions. It is estimated that the revenue from 2022 to 2024 will be 102452 billion yuan, 123735 billion yuan and 142790 billion yuan respectively, the net profit attributable to the parent company will be 5.877 billion yuan, 7.527 billion yuan and 8.842 billion yuan respectively, the corresponding EPS will be 1.72, 2.20 and 2.59 yuan / share respectively, and the corresponding current PE will be 21, 17 and 14 times respectively. It will be re covered and rated as “overweight”
[risk tips]
Downstream demand is lower than expected
Deterioration of industry competition pattern
Upstream raw material prices continued to rise
