As of April 19, a total of 30 “fruit chain” listed companies have issued financial reports or performance forecasts for 2021. From the overall performance, the performance of Guolian listed companies in the past year has shown polarization: on the one hand, the net profits of BOE, Gigadevice Semiconductor (Beijing) Inc(603986) , Jcet Group Co.Ltd(600584) and other enterprises have doubled; On the other hand, many companies suffered huge losses, such as Shenzhen Everwin Precision Technology Co.Ltd(300115) , Shenzhen Deren Electronic Co.Ltd(002055) , Ofilm Group Co.Ltd(002456) , etc.
As for the reasons for the polarization of the performance of “fruit chain” listed companies, Zhang Xiaorong, President of deep science and Technology Research Institute, said in an interview with the reporter of Securities Daily: “some” fruit chain “enterprises are highly dependent on Apple orders, resulting in a decline in performance due to Apple’s cutting orders; another part of enterprises master advanced technology, are in the upper reaches of the industry, the market is diversified, and are less affected by apple, but their performance rises.”
“fruit chain” company performance differentiation
In fact, due to geopolitics, uncertainty of economic growth and covid-19 pneumonia, the demand for consumer electronics shows signs of slowing down. Canalys’ report shows that since the first decline in China’s mobile phone shipments in 2017, China’s mobile phone shipments have fallen for four consecutive years, with a slight increase of 1% in 2021; In February 2022, the sales volume of smart phones in the Chinese market was about 23.48 million, a year-on-year decrease of 20.5%.
According to incomplete statistics, among the 30 Chinese “fruit chain” listed companies that have announced their performance or performance forecast, 19 companies have achieved profits, only 10 companies have achieved positive year-on-year growth in net profit, 4 companies have suffered huge losses and 11 companies have experienced year-on-year decline in net profit.
“In 2021, due to the lack of core and materials, as well as the weakening of demand, apple considered the cost problem and pressed the price of some suppliers with strong substitutability, while suppliers with advantages in technology made a lot of money. Because of this, the performance of listed companies of ‘fruit chain’ appeared differentiation.” Zhou Jia, a researcher of Yihu investment electronics, told reporters.
“Companies with multiple product lines and technological advantages have better performance, such as Boe Technology Group Co.Ltd(000725) , Goertek Inc(002241) etc.; single performance, over reliance on Apple orders, and obvious decline in performance. For example, Ofilm Group Co.Ltd(002456) is listed on the ‘fruit chain’ with the highest loss due to being ‘excluded’ from the list of Apple suppliers.” Zhou Jia said.
Zhang Xiaorong believes that the biggest “tragedy” of “fruit chain” company is to rely on apple in the industrial chain, and in terms of price, innovation and various development directions, it is forced to focus on Apple’s baton, lose its creativity over time, and become a “foundry” in an alternative sense.
“Some ‘fruit chain’ enterprises have put eggs in one basket before, and the proportion of Apple’s orders is too large, resulting in greater business risks. Therefore, on the one hand, fruit chain enterprises need to carry out diversified development of business and customers, on the other hand, they should expand to upstream areas with higher competitive barriers.” Major general Ding, founder of nail technology, told reporters.
finding new kinetic energy is an important way out
In the above context, many companies began to take precautions or cross-border self rescue.
At the beginning of this year, the “fruit chain” giants have thrown out relevant cross-border plans. In February, Luxshare Precision Industry Co.Ltd(002475) Hao invested 10 billion yuan and joined hands with Chery to enter the field of vehicle manufacturing Goertek Inc(002241) carries out multi-point layout. The company is the exclusive OEM of oculusquest 2, Sony PSVR and picovr under meta, accounting for more than 80% of the global medium and high-end VR shipments. However, it is worth noting that Goertek Inc(002241) is also one of the suppliers of Apple’s airpods.
Foxconn Industrial Internet Co.Ltd(601138) ceo Zheng Hongmeng also said at the performance meeting that the company’s products such as intelligent cockpit, automobile motor and high-voltage connector are under construction, and the goal is to enter mass production in 2023. Some time ago, 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.
\u3000\u3000 “It can be seen that apple still has a great impact on the control ability and performance of supply chain companies, which is determined by Apple’s strong industrial chain position. However, as supply chain companies realize that the business risk of ‘success and failure’ is high, many companies have actively promoted diversification and upstream layout from a medium-term and long-term perspective, and some have achieved certain results. In the future, Apple will have a greater impact on relevant ‘fruit chain’ companies Gradually decline. ” Major general Ding thinks.
Zhou Jia predicted that the business focus of the major “fruit chain” giants is the downward trend of consumer electronics and seeking new growth momentum. If relevant companies can expand the second growth curve of performance, such as new energy vehicle industry chain and photovoltaic industry chain, the performance may increase; If the expansion of new business is less than expected, or there is no new business, relying only on the apple industry chain or mobile phone industry chain, it may be difficult to be optimistic about the performance this year.
