\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Event: in 2021, the company achieved a revenue of RMB 4.038 billion, a year-on-year increase of + 42.78%, and a net profit attributable to the parent company of RMB 483 million, a year-on-year increase of + 79.87%; In 2021q4, the revenue was 1.394 billion yuan, a year-on-year increase of + 44.97%, and the net profit attributable to the parent company was 183 million yuan, a year-on-year increase of + 88.48%.
The growth of smart micro investment continues to be high, and China’s leading position is stable. In 2021, the revenue of intelligent micro investment business reached 3.501 billion yuan, with a year-on-year increase of + 51.97%, accounting for 86.7%, higher than the overall growth rate of the industry, and the market share in China further increased. According to IDC, the company’s market share in China reached 21.2% in 2021, with a year-on-year increase of + 3.1pct, ranking firmly as the leader in China’s projection market; As the epidemic affected offline channel sales, the revenue of laser TV decreased by 46.7% year-on-year; Innovation business also declined slightly, with a year-on-year decrease of – 3.5%. In terms of regions, the revenue from domestic sales reached 3.57 billion yuan, a year-on-year increase of + 36.1%, of which Shanghai Aladdin Biochemical Technology Co.Ltd(688179) business decreased year-on-year, which dragged down the growth of domestic sales. The revenue from independent brands exported reached 430 million yuan, a year-on-year increase of + 145.2%. The bright growth of export sales was mainly driven by the company’s rapid expansion of overseas channels and new products. From Q1, although the epidemic has led to logistics stagnation, the smart projection market has maintained steady growth, the growth rate of Jimi is still higher than that of the market, and the leading position is stable. Driven by new products, the company’s revenue is expected to continue high growth.
The net interest rate increased significantly in the fourth quarter. The import scope of self polishing machine was further expanded. In 2021, the gross profit margin of intelligent micro investment was significantly improved, with a year-on-year increase of + 6.1pct and a Q4 gross profit margin of 33.4%, a year-on-year increase of + 0.4pct and a month on month increase of – 4.4pct, mainly due to the adjustment of accounting standards; Q4 gross sales difference was + 2.2pct year-on-year and + 1.0pct month on month. Q4 management / R & D / financial expense ratio was – 0.2pct / + 0.9pct / – 0.3pct year on year. The overall cost side was well controlled. Overall, the company’s net profit margin increased significantly, about 12.0% in 2021, year-on-year + 2.5pct, Q4 was 13.2%, year-on-year + 3.0pct, month on month + 2.0pct. Under the background of continuous pressure on the raw material end, driven by the optimization of product structure and cost reduction and cost control, the profitability of the company is expected to remain stable.
Investment suggestion: the company is firmly at the leading position in China’s projection market, continues to expand overseas blank markets, layout new products to occupy the first mover advantage, achieve high revenue growth, and significantly improve profits driven by cost reduction and efficiency increase. It is expected that the net profit attributable to the parent company from 2022 to 2024 will be RMB 663 / 901 / 1151 million, maintaining the “buy” rating.
Risk tip: raw material supply risk, market competition intensifies, and the performance of new products is less than expected.
