\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Event: Chengdu Xgimi Technology Co.Ltd(688696) published the annual report of 2021. The company achieved revenue of 4.04 billion yuan in 2021, yoy + 42.8%;
Achieved performance of 480 million yuan, yoy + 79.9%. After conversion, the company realized revenue of 1.39 billion yuan in 2021q4 single quarter, yoy + 45.0%; Achieved performance of 180 million yuan, yoy + 88.5%. The domestic and foreign sales revenue of Jimi Q4 maintained rapid growth in a single quarter, reflecting the strong demand for terminals. In addition, the company's Q4 profitability has improved compared with Q3, and the cost investment efficiency has been improved.
There is a strong demand for domestic and export sales of household projectors: the income of Jimi China in 2021 was 3.38 billion yuan, yoy + 39.6%.
We estimate that the revenue growth rate of Jimi China in Q4 single quarter is about 45%. According to the business consultant data, the sales volume of 2022q1 Jimi projector Amoy platform is yoy + 21% (the growth rate of 2021q4 is 63%). In 2022q1, the growth rate of Jimi projector in China may decline compared with Q4, but it is expected to maintain stable growth. In 2021, Jimi's overseas revenue was 650 million yuan, yoy + 61.6%. Among them, the income from innovative products was 220 million yuan, yoy-3.5%; The revenue of overseas independent brands was 430 million yuan, yoy + 145.2%. Overseas household projectors started later than the Chinese market, and the industry has a large room for expansion. Jimi continues to promote consumer education in overseas markets and expand channels. We expect that Jimi's independent brand is expected to maintain a high-speed growth trend in the overseas market.
Q4 single quarter profitability improved month on month: the net interest rate of Jimi in 2021q4 was 13.1%, month on month Q3 + 1.9pct.
We believe that the main reasons are as follows: 1) the efficiency of selling expenses of Q4 company has been improved. In 2021q4, the revenue growth of Jimi increased by Q3 + 13pct month on month, but the sales expense rate decreased month on month. Due to the adjustment of accounting standards, we estimate that under the same caliber, the sales expense rate of Jimi in Q4 single quarter decreased by about 1PCT month on month (assuming that the transportation expense rate of Jimi in each quarter is 1.5%); 2) The company enjoys the tax preference of R & D expenses plus deduction. The corporate income tax rate in Q4 is 0.9% and Q3 is 15.1%.
The net cash flow from operating activities of the company increased in Q4 single quarter: the net cash flow from operating activities of Jimi in 2021q4 was 470 million yuan, a year-on-year increase of + 370 million yuan. The cash received by Jimi Q4 in selling goods and providing labor services in a single quarter was yoy + 58%, while the cash paid for purchasing goods and receiving labor services was yoy-15%. We believe that due to the shortage of semiconductor supply, Jimi has made great efforts to prepare goods in the early stage to meet the market demand, and the Q4 purchase amount has decreased accordingly (the inventory of Jimi Q4 is 970 million yuan, compared with Q3 - 40 million yuan month on month).
Chip supply suppresses short-term growth, and there is a large growth space for the medium and long-term household projector industry. Looking forward to 2022, limited by the tight supply of chips, there is a certain pressure on the growth of household projector market. However, from the performance of 2021q4, Jimi still achieved rapid growth in domestic sales without large-scale price reduction and promotion, reflecting the strong demand of consumers for household projector products. In the medium and long term, we believe that the domestic projector industry has a large growth space in China's foreign markets. With the gradual easing of the chip supply problem, the company's revenue is expected to release greater flexibility.
Investment suggestion: Jimi is the leader in China's projector industry. The company's products and channels are continuously optimized and its profitability is improved. The company has made greater efforts to expand overseas markets and is expected to achieve rapid growth in the dividend period of the industry. We expect Chengdu Xgimi Technology Co.Ltd(688696) 2022-23 EPS to be 12.32/18.45 yuan, maintaining the Buy-A investment rating.
Risk warning: technology R & D risk, increased market competition risk, and dependence on outsourcing of core parts
