\u3000\u3 China Vanke Co.Ltd(000002) 241 Goertek Inc(002241) )
Event: on April 26, the company released the first quarterly report of 2022, realizing an operating revenue of 20.112 billion yuan, a year-on-year increase of 43.37%; The net profit attributable to the parent company was 901 million yuan, a year-on-year decrease of 6.71%; The net profit deducted from non parent company was 878 million yuan, with a year-on-year increase of 46.06%. At the same time, the company issued a semi annual performance forecast. It is estimated that the net profit attributable to the parent company will be RMB 2.077 billion ~ 2.423 billion in the first half of 2022, with a year-on-year increase of 20% ~ 40%; The net profit of non parent company was RMB 1.903 billion, with a year-on-year increase of ~ 5.503 billion.
The intelligent hardware business is progressing smoothly, helping H1’s performance rise against the trend: (1) 2022q1: the company achieved revenue of 20.112 billion yuan, yoy + 43.37%, qoq-20.92%; The net profit attributable to the parent company was 901 million yuan, yoy-6.71% and qoq-4.36%, mainly due to the decrease in benefits from changes in the fair value of kopin equity investment held by the company; Excluding the impact of non recurring profits and losses, the company realized a net profit of 878 million yuan, yoy + 46.06% and QoQ + 7.93%. In terms of business, the growth rate of intelligent hardware business is bright, with revenue reaching 10.144 billion yuan, yoy + 125.05%; The business revenue of intelligent acoustic complete machine and precision parts and components was 6.469/3.153 billion yuan, yoy + 6.10% / – 1.42%. The gross profit margin of the company is 13.72%, yoy-0.84pct; The period cost rate is 8.84%, yoy-0.75pct. (2) 2022h1: the net profit attributable to the parent company is expected to be 2.077 ~ 2.423 billion yuan, yoy + 20 ~ 40%; The net profit of non parent company deduction was 1.903 ~ 2.185 billion yuan, yoy + 35 ~ 55%, which mainly benefited from the growth of sales revenue and profitability of VR and intelligent game consoles.
VR has ushered in a long business cycle and the OEM leader has benefited deeply: according to the latest data of IDC, the global shipment of VR / AR headwear equipment will reach 11.2 million units in 2021, yoy + 92.1%. It is estimated that the shipment will be about 16.45 million units in 2022, yoy + 46.9%. It is expected to exceed 50 million units in 2026, with an annual compound growth rate of 35.1%. As the world’s leading manufacturer of VR machines, the company has long-term cooperation with well-known customers such as meta and Sony, and will give priority to benefiting from the rapid development of VR / AR industry. With the launch of new VR products and product iteration, the value of VR OEM of the company is expected to increase simultaneously.
Executive shareholding increase + equity incentive, demonstrating confidence in long-term development: on April 6 and 15, the company issued an announcement on executive shareholding increase. Jia Junan, vice president of the company, increased the company’s shares twice with his own funds in the secondary market by means of centralized bidding transaction, with a total of 290000 shares, indicating confidence in the future long-term development of the company. On April 20, the company issued an announcement on the completion of equity incentive registration in 2021, granting 5 million reserved stock options to 207 incentive objects who met the grant conditions, with an exercise price of 29.33 yuan / share. The performance assessment target is based on the operating income in 2020, and the growth rate of operating income in 2021 and 2022 shall not be less than 25% and 50% respectively. This equity incentive is expected to stimulate the motivation of core employees and help the sustainable and stable development of the company.
Investment suggestion: we estimate that the company’s operating revenue from 2022 to 2024 will be 105208 billion yuan, 130047 billion yuan and 164562 billion yuan respectively, the net profit attributable to the parent company will be 5.651 billion yuan, 7.193 billion yuan and 9.489 billion yuan respectively, the EPS will be 1.65 yuan, 2.11 yuan and 2.78 yuan respectively, and the corresponding PE will be 16.7 times, 13.1 times and 9.9 times respectively, maintaining the “Buy-A” investment rating.
Risk tip: VR terminal demand is less than expected; Customer development is less than expected; Product development is not as expected; Market development is less than expected.
