\u3000\u3 China Vanke Co.Ltd(000002) 993 Dongguan Aohai Technology Co.Ltd(002993) )
Event: on April 19, the company released its annual report for 2021, realizing an operating revenue of 4.245 billion yuan, a year-on-year increase of 44.14%; The net profit attributable to the parent company was 344 million yuan, a year-on-year increase of 4.40%; The net profit deducted from non parent company was 308 million yuan, a year-on-year decrease of 2.48%; It is proposed to distribute a cash dividend of 0.2 yuan / share to all shareholders. Meanwhile, the company released the first quarterly report of 2022, realizing an operating revenue of 1.107 billion yuan, a year-on-year increase of 29.78%; The net profit attributable to the parent company was 105 million yuan, a year-on-year increase of 26.99%; The net profit deducted from non parent company was 97 million yuan, with a year-on-year increase of 23.18%.
The volume and price of fast charging products continued to rise, and the gross profit margin of Q1 rebounded month on month: with the rapid development of high-power fast charging technology, the fast charging scheme gradually penetrated from high-end mobile phones to medium and low-end mobile phones, and the company’s fast charging unit price and sales proportion continued to increase. According to the announcement data, from 2019 to 2021, the ASP of the company’s chargers were 9.58/10.25/12.62 yuan respectively, and the sales volume of chargers were 219/2.72/310 million respectively. Chargers and adapters / portable energy storage and others achieved revenue of RMB 3.913 billion / 333 million respectively, yoy + 40.45% / + 108.64%; The gross profit margin was 18.37% / 16.57% and yoy-5.11pct / -0.76pct respectively, which was affected by the epidemic situation, the rise of raw materials and transportation costs, exchange rate fluctuations, power rationing and other multiple effects. The profitability of 22q1 was improved compared with that of 21q4, and the overall gross profit margin rebounded to 19.04%, yoy-0.84pct, QoQ + 1.30pct.
Gan fast charging / wireless charging and other markets are growing rapidly, and high-power products continue to make breakthroughs: in line with users’ demands for high efficiency, small volume and safety of chargers, Gan fast charging and safe and flexible wireless charging with the characteristics of high efficiency and lightness are expected to become the development trend of the charging market. According to BCC research, the global wired charger market will reach US $11.431 billion in 2022; Mainstream manufacturers have successively released Gan fast charging products. It is expected that the global Gan charger market will exceed 60 billion yuan in 2025 and 90% CAGR in five years. With the rapid development of high-power fast charging technology of 40W and above, the penetration rate of fast charging products has increased rapidly, and the fast charging power has also increased from the past 10-20w. Fast charging products with higher value such as 66W and 120W have achieved mass sales. According to the data of markets and markets, the scale of the global wireless charging market is about US $4.5 billion in 2021, which is expected to increase to US $13.4 billion in 2026, and the CAGR will reach 24.6% in five years. At present, the company has achieved large-scale mass production, including 120W and below wired charging, 120wgan fast charging, 15W wireless charging and other products, 160W / 200W and higher power fast charging and 50W wireless charging are under research; Looking forward to the future, as the leading charger in China, the company is expected to make continuous breakthroughs in the field of high-power fast charging and wireless charging, and fully enjoy the market dividend.
Horizontal expansion of multiple application scenarios, and new products in wireless charging, power tools, servers and other fields are expected to increase rapidly: the company relies on existing businesses and technologies to develop multi field businesses, which is expected to achieve long-term and steady development. 1) Mobile phone charger: maintain long-term and stable cooperation with hmov, glory, voice transmission, Nokia, moto and other well-known mobile phone brands at home and abroad; 2) Wireless charging: the company has Murphy, best buy, Google and other international customers. It has obtained the Qualcomm wireless fast charging technology certification issued by UL for 21 years. At present, its products have been applied to high-speed rail, UAV, smart home and other fields; In the year of 21, the company successfully acquired soling communication and increased the layout of wireless charging field. The products such as car mounted wireless charging, electric toothbrush wireless charging and wireless quick charging mouse pad are expected to achieve mass production in 22 years; 3) PC: customized 45W / 65W / 100W chargers have been mass produced, 140W chargers are under development, and cooperate with Huawei, ASUS, Xiaomi and other customers; Self developed gan30w / 45W / 65W / 100wpd charger can be compatible with a variety of terminals; 4) IOT: it has established stable cooperation with many brand customers in the fields of wearable, smart home and smart speaker, and the shipment volume of customers such as Xiaomi, Amazon and Google has increased rapidly. In 21 years, the revenue in this field has reached 567 million yuan, yoy + 69.8%; 5) Electric tools: achieve a breakthrough of 0 in 21 years, mass produce 2 new products, and complete the construction of 42W / 84w / 168W product platform; At present, Ruiqi, baoshide and other customers have been introduced, and it is expected to gradually expand other leading enterprises in the future, with considerable growth space; 6) Data: at present, the development of mainstream 550W / 800W server power supply has been completed, and 1300W / 3600W is under development; The server power products of 21q4 company have started mass production and are expected to increase rapidly in 22 years; 7) Independent brands: actively promote the construction of aohi and mobile speed brands, and achieve a revenue of 40 million yuan in 21 years; Among them, aohi achieved tmall’s goal of actively searching for the top 10 charger brand, and achieved the top 5 chargers, the top 3 chargers of the double 11, and the top 10 stable storage products. In addition, the company obtained 35% equity of Zhixin control in 21 years, participated in its capital increase in 22 years and successfully obtained 67.227% equity, which strengthened the company’s competitiveness in the field of new energy vehicles.
The production capacity continues to expand, and fast charging and high-power power supply have been increased: the company has four major production and manufacturing bases in Dongguan, Jiangxi, India and Indonesia, with a production capacity of more than 220 million in 21 years; With a wholly-owned subsidiary of the supply chain, the annual production capacity of core materials includes more than 100 million rubber shells, more than 500 million electrolytic capacitors and nearly 20 million planar transformers. With the continuous production of Dongguan intelligent terminal accessories project and Jiangxi wireless charging / intelligent fast charging project, the company’s production capacity has been fully released. On April 12, 2022, the company’s fixed growth plan was approved, and it plans to raise nearly 2 billion yuan, of which about 1.4 billion yuan is used for the “construction project of fast charging and intelligent production base of high-power power supply”, and the rest is used for brand construction and promotion, R & D center upgrading, etc. the business scale of the company is expected to further expand with the expansion of production capacity.
Investment suggestion: we estimate that the operating revenue of the company from 2022 to 2024 will be 5.209 billion yuan, 6.352 billion yuan and 7.472 billion yuan respectively, the net profit attributable to the parent company will be 446 million yuan, 570 million yuan and 755 million yuan respectively, the EPS will be 1.90 yuan, 2.43 yuan and 3.21 yuan respectively, and the corresponding PE will be 15.3 times, 12.0 times and 9.0 times respectively, so it is rated as “Buy-A” investment.
Risk warning: the recovery of the epidemic situation is not as expected; Price fluctuation risk of raw materials; Fast charging permeability is lower than expected; Product development was less than expected.
