\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Main points:
Event overview
Chengdu Xgimi Technology Co.Ltd(688696) issued the 2021 annual report on April 21. In 2021, the company achieved an operating revenue of 4.038 billion yuan, a year-on-year increase of 42.78%; The net profit attributable to the parent company was 483million yuan, a year-on-year increase of 79.87%; The net profit deducted from non parent company was 429 million yuan, with a year-on-year increase of 73.37%.
The performance increased sharply in 2021, and the growth rate of net profit attributable to the parent company was about 80%
On the revenue side, the company achieved an operating revenue of 4.038 billion yuan in 2021, with a year-on-year increase of 42.78%, mainly due to the good performance of the intelligent projection market and the growth of sales volume; At the same time, the launch of high-end projection products has driven the average unit price of the company’s projection products to rise. On the profit side, the company realized a net profit attributable to the parent company of 483 million yuan in 2021, with a year-on-year increase of 79.87%; Net profit deducted from non parent company was 429 million yuan, with a year-on-year increase of 73.37%. The increase was mainly due to changes in pricing strategy and product structure: in 2021, the company reduced discount promotion and continued to introduce self-developed optical machines, which led to an increase in the gross profit margin of micro investment business. At the same time, the revenue of the company’s low gross profit laser TV and innovative products business decreased by 46.74% and 3.51% year-on-year. As a result, the company’s overall gross profit margin was optimized, up 3.88pct from last year. In the short term, with the younger consumer groups and the increased acceptance of projectors, the penetration of intelligent projection products is expected to continue to increase in the future. In the medium term, the company’s high gross profit overseas business has huge space and fast growth. According to IDC data, CAGR exceeded 21.5% from 2017 to 2022, the company’s overseas revenue grew by about 145% in 2021, and the gross profit margin reached 40.39%, 4.92pct higher than that in China. In the long run, the progress of upstream light source and display chip technology is expected to drive the further expansion of downstream application scenarios.
The market share of shipments has risen, and the leading position is stable
According to the tracking report of China’s projector market in the fourth quarter of 2021 released by IDC, the company’s shipment and sales volume in the projector market are the first in China. Compared with its competitors, the company’s shipments exceeded the sum of the second to fourth places, with a market share of 21.2%, an increase of 3.10 PCT over last year. In terms of single product shipments, the company’s Jimi h3s, newz6x, z8x, play and Z6 ranked first to fifth in the Chinese market; In terms of single product sales, the company’s h3s and newz6x rank first and second. We believe that the company has formed a solid leading position, and the advantages of the company’s technical R & D team, marketing network and brand will support the company to further expand markets at home and abroad.
The intensive release of high-end new products drives the upgrading of intelligent projection business
In China, the company released h6s and rspro2 in the first half of 2021, and both products entered the top 10 of projection single product sales in the same year; Overseas, the company released products such as projector horizon and horizon pro, among which horizon Pro was rated as the most worthy product by European audio and Video Association EISA and won two Japanese VGP awards. The company’s high-end new products have been recognized at home and abroad, which will drive the company’s business upgrading and comply with the high-end trend of household intelligent projection industry. According to IDC data, the company’s LED projection shipments priced at more than 5000 yuan accounted for 8% of the total LED projection shipments in 2021, an increase of 700% over 2020. We believe that with the development of projection technology and its penetration into household use, intelligent large screen projection and the high-end experience of rich content supply on the Internet will further expand the user base and improve user stickiness.
Investment advice
Under the trend that consumers gradually recognize high-end household projectors, the company is expected to seize the opportunity to improve the market share and further consolidate its leading position. We expect the company to achieve a revenue of 5.8/79/10.5 billion yuan from 2022 to 2024, with a year-on-year increase of 43% / 37% / 32%; The net profit attributable to the parent company was 677 / 951 / 1339 million yuan, with a year-on-year increase of 40% / 40% / 41%, maintaining the “buy” rating.
Risk tips
1) R & D breakthrough is less than expected; 2) Policy support is less than expected; 3) Customer expansion was less than expected.
