\u3000\u3 China Vanke Co.Ltd(000002) 241 Goertek Inc(002241) )
Conclusions and suggestions:
The company released 1q22 results, thanks to the rapid increase of VR, game console and other related revenue, 1q22 revenue increased by more than 40%, and the net profit increased by 46% after deduction. At the same time, the net profit of 2q22 after deduction is expected to increase by 27% – 62%, which is optimistic. As a global leading manufacturer of VR machines, the company will directly benefit from the rapid development of VR industry. It is estimated that the company will realize net profits of 5.5 billion yuan and 6.9 billion yuan in 202223, yoy will increase by 29% and 26%, EPS will be 1.61 yuan and 2.02 yuan, corresponding to 21 times and 17 times of PE respectively, and investment suggestions of “buy” will be given.
VR has made great efforts, and 1q22 performance has grown significantly: in the first quarter of 2022, the company achieved a revenue of 20.11 billion yuan, and yoy increased by 43.4%; The net profit was RMB 900 million, yoy decreased by 6.7%, and the net profit after deduction was RMB 880 million, yoy increased by 46% and eps0.5% 27 yuan. The reason for the decline of the company’s net profit is that 1q21 company recorded a gain of 360 million yuan from the change in the fair value of Gaoping electronics, while the significant increase in net profit after deduction was due to the explosion of VR and game console demand, and the income of intelligent hardware business increased by 125%. The growth rate of the company’s intelligent hardware revenue exceeded expectations. In terms of gross profit margin, the company’s comprehensive gross profit margin in the first quarter of 2022 was 13.7%, down 0.8 percentage points from the same period of last year, reflecting the changes brought about by the adjustment of product structure.
2q22 guidelines are optimistic: the company expects 1H22 to achieve a net profit of 2.07 billion yuan – 2.42 billion yuan, yoy increased by 20% – 40%, after deducting non net profit of 1.9 billion yuan – 2.18 billion yuan, yoy increased by 35% – 55%. Accordingly, 2q22 achieved a net profit of 1.18 billion yuan to 1.52 billion yuan, yoy increased by 54% – 99%, and the net profit after deduction was 1.02 billion yuan to 1.31 billion yuan, yoy increased by 27% – 62%. Thanks to the growth of sales revenue and profitability of vr virtual reality, intelligent game console and other products, 2q22’s net profit after deduction will continue to maintain a high-speed growth trend.
Profit forecast: looking forward to the future, we expect the demand for AR / VR to grow rapidly. As the global leader in the OEM of VR machines, the company has high-quality customer resources. At the same time, the combination of optical and acoustic products of the company will be closer. As 1q22’s revenue growth exceeded the estimate and 2q22’s guidance was good, we raised the company’s annual profit forecast by 10%. We expect the company to realize a net profit of 5.98 billion yuan and 7.69 billion yuan in 202223, with yoy increasing by 40% and 29%, EPS of 1.75 yuan and 2.25 yuan, corresponding to 16 times and 12 times of PE respectively. We give “buy” investment suggestions.
Risk warning: the impact of the epidemic exceeded expectations, and the price fluctuation of raw materials exceeded expectations;
