\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Event: the company released the financial report of 2021. The company achieved a revenue of 4.038 billion yuan in 2021, with a year-on-year increase of 42.8%; The net profit attributable to the parent company was 483 million yuan, a year-on-year increase of 79.9%. Among them, the single quarter revenue of 21q4 was 1.394 billion yuan, a year-on-year increase of 45%; The net profit attributable to the parent company was 183 million yuan, a year-on-year increase of 88.5%.
The product structure was upgraded, and the export growth rate was significant. 1) In terms of products, based on the continuous investment in optics, machine vision, picture intelligent algorithm and other fields, the company launched high-end models h3s and rspro2, and the intelligent micro investment products increased by 51.97% at the same time; 2) From the perspective of channels, the company deeply cultivated online platforms such as jd.com and tmall, and the online sales revenue increased by 51.44% at the same time. 3) In terms of market, the company actively expands overseas markets. At present, the overseas markets of the company’s products have covered developed markets such as the United States, Japan and Europe. The product matrix of overseas markets has been further supplemented, and the company’s overseas revenue increased by 145.22% year-on-year.
Profitability continued to be optimized and R & D investment increased. Facing the shortage of chip supply, the company’s gross profit margin increased by 4.25pct to 35.88% in 21 years, of which the gross profit margin of intelligent micro investment products increased by 6.11pct. Mainly 1) h3s, rspro2 and other series of new products, driving the average sales price of products to increase, while the company reduces price reduction and promotion activities. 2) The continuous introduction of self polishing machine drives the reduction of production cost. Rate side: the company’s sales / management / R & D / financial rate in 21 years was 15.42% / 2.61% / 6.51% / – 0.10%, with a year-on-year change of 1.52 / – 0.15 / 0.27 / – 0.17pct. Among them, the sales and R & D rates have increased significantly, and the sales expenses are mainly due to the company’s increasing brand publicity and hiring star endorsements; R & D expenses are mainly due to the continuous increase in R & D investment in new products and technologies and the corresponding increase in R & D personnel. Net interest rate: the company achieved a net interest rate of 11.97% in 2021, with a year-on-year increase of 2.46pct. Cash flow: the company achieved a net operating cash flow of 536 million yuan in 21 years, an increase of 351 million yuan year-on-year. The inventory was 960 million yuan, a year-on-year increase of 248 million yuan, mainly due to the company’s increase in the stock scale of core parts.
DLP projector leader. Under the background of the shortage of DMD chip supply, the company actively promoted new product structure upgrading, of which the parity price projector NewZ6 and NewZ6X were raised by 400 yuan compared to the average price of Z6 and Z6X, and the binding spokesperson Yiyang Qianxi was pulling the single product shipments, creating the entry explosive products to accumulate the brand voice; The flagship h3s realizes the algorithm upgrade on the same chip configuration, improves the gross profit of each product, and further strengthens its competitive advantage.
Profit forecast and investment suggestions. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 669 million, 906 million and 1189 million respectively, with a year-on-year growth rate of 38.3%, 35.6% and 31.2% respectively. The company has the first mover advantage of DLP projector optical machine manufacturing and algorithm development, and maintains the “overweight” investment rating.
Risk tip: new product expansion is less than expected, industry competition intensifies, and chip supply is less than expected.
