\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
2021q4’s performance increased rapidly, and the high boom track continued to lead, maintaining the “buy” rating
In 2021, the company’s revenue was 4.04 billion yuan (+ 42.8%), and the net profit attributable to the parent company was 480 million yuan (+ 79.9%). In 2021q4, the revenue was 1.39 billion yuan (+ 45.0%), and the net profit attributable to the parent company was 180 million yuan (+ 88.5%). In 2021, the company continued to lead China’s intelligent micro investment industry, further improved the market share, supplemented and more than doubled the overseas private brand product line, and deepened the barriers to competition at the marketing and R & D ends. Considering the impact of the epidemic disturbance and the rise of raw materials, we lowered the profit forecast for 20222023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be RMB 652 / 889 / 1164 million (the original value of RMB 699 / 1010 million in 20222023), the corresponding EPS will be RMB 13.0 / 17.8 / 23.3 (the original value of RMB 14.0 / 20.2 in 20222023), and the current stock price will be 28.6 / 21.0 / 16.0 times that of PE. The company’s brand products are led by advantageous industries, Maintain the “buy” rating.
China’s leading position of new intelligent micro investment products continued to deepen, and overseas market expansion exceeded expectations
In 2021, the revenue of intelligent micro investment was 3.5 billion (+ 52.0%), accounting for + 5.2pcts of revenue, and the sales volume / average price were + 33.79% / + 13.59% respectively. In 2021, new products such as newz6x and h3s continued to sell well. According to IDG, Jimi accounted for 21.2% (+ 3.1pcts) of China’s projection market share in 2021, ranking first. In 2022q1, the Gmv market share of Alibaba channel Jimi projection sales reached 21.9% (+ 1.6pcts), and the upward trend continued. The sales of z6xpro projection of the new product exceeded expectations, and the sales volume of Jimi projection of Alibaba channel in 2022w16 was Gmv + 120%, more than doubling. We are optimistic that new products will drive the sustained and high growth of domestic sales and further deepen our leading position. In terms of channels, the company’s domestic / overseas business revenue in 2021 was + 36.07% / + 145.2% respectively. The Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels in Japan, Europe, the United States and other regions went hand in hand. It is optimistic that the company’s overseas market expansion will be further accelerated after completing the product matrix.
The gross profit margin rose against the trend and is optimistic that the optimization of channels and product structure will bring further room for rise
In 2021, the gross profit margin of the company was 35.9% (+ 4.3pcts), which was mainly driven by the reduction of discount promotion, the large volume of new products with high gross profit and the continuous increase in the proportion of self-developed polishing machines. The gross profit margin of 2021q4 is 33.4% (+ 0.4pct), with little increase, mainly due to the adjustment of freight to cost. At the expense side, the company’s sales / R & D expense ratio in 2021 was + 1.5 / + 1.6pcts respectively, deepening its long-term competitive advantage. In 2021, the company’s net profit margin was 12.0% (+ 2.5pcts), and in 2021q4, the net profit margin was 13.2% (+ 3.0pcts). The trend of gross profit margin continued to improve, and it is expected that the net profit margin will remain stable and rise.
Risk tips: changes in tariff policies; Price fluctuation of raw materials; Overseas business development was less than expected.
