\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Event: the company released its annual report for 2021, and achieved an operating revenue of 4.038 billion yuan in 2021, a year-on-year increase of + 42.78%; The net profit attributable to the parent company was 483 million yuan, a year-on-year increase of + 79.87%; It is proposed to distribute a cash dividend of 30 yuan (including tax) for every 10 shares.
Comments:
The annual profit increased rapidly, and the performance growth was driven by the large amount of new products at home and abroad. By category, the annual revenue of the company's intelligent micro investment / innovative products / laser TV products was 3.501219/0.64 billion yuan, with a year-on-year increase of + 51.97% / - 3.51% / - 46.74% respectively. The annual revenue increased significantly, mainly driven by intelligent micro investment products, and the decline of laser TV revenue was mainly due to the decline of Direct stores as an important sales channel of laser TV products, which was affected by the epidemic situation during the year. In terms of channels, the company's sales revenue in China / overseas was 3.574 billion yuan and 434 million yuan respectively, with a year-on-year increase of + 36.07% / 145.22% respectively, of which the proportion of overseas in the total revenue increased by 4.5pct to 10.74%. During the year, the company successively launched new products horizonpro / elfin / aura to force overseas markets such as Japan, the United States and Europe, and the overseas revenue increased rapidly.
The gross profit margin rose against the trend, government subsidies increased and the net interest rate increased. In 2021, the rising price of raw materials, the shortage of chip supply and shipping power and other problems were highlighted. However, on the one hand, the company strengthened the introduction of self-developed polishing machines to reduce production costs, on the other hand, it optimized the product structure (the gross profit margin of intelligent micro investment products + 6.1pct to 35.50%, the proportion of revenue + 5.2pct to 86.71%), and the annual gross profit margin increased by 4.3pct to 35.88%. The annual sales / management / R & D expense ratio was +1.5pct/+0.2pct/+1.6pct to 15.42%/2.62%/6.51% respectively, and the annual net interest rate was +2.5pct to 11.97% year-on-year after the company received VAT rebate and government subsidies.
Strengthen the expansion of all channels and steadily increase the market share. By the end of the year, the company had 172 self operated stores and franchise stores, and the market continued to sink; Online has established cooperative relations with major mainstream audio-visual media, and the overweight at the channel end has helped the company's market share increase rapidly. According to IDC data, the shipment volume of the company's projection equipment was about 1 million units in 2021, occupying the first place with 21.2% market share (about 12.8pct higher than the second place). At the same time, the company launched a restricted equity incentive plan, which plans to grant 152 incentive objects a total of 3.2 million restricted shares and options to bind the interests of the company and core employees.
Investment suggestion: focus on overseas expansion and technology research and development, and highlight the value of intelligent projection leader. The company's overseas channel construction is becoming more and more effective, and its core technology is becoming more and more mature, which is expected to further improve its performance. Under the disturbance of the epidemic, we fine tune the company's profit forecast. It is estimated that the company's net profit attributable to the parent company from 2022 to 2024 will be 659 / 904 / 1175 million yuan respectively (the original forecast value of 2022 / 2023 is 716 / 1020 million yuan), corresponding to 27 / 20 / 15 times of the current market value PE respectively, maintaining the "buy" rating.
Risk tips: geopolitical changes, repeated outbreaks in China, fluctuations in raw material prices, etc.
